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    • nerion
    • By nerion 7th Sep 17, 3:14 PM
    • 5Posts
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    nerion
    Fallout from car accident (my fault, policy had expired!)
    • #1
    • 7th Sep 17, 3:14 PM
    Fallout from car accident (my fault, policy had expired!) 7th Sep 17 at 3:14 PM
    Hi all, hope someone can help.

    In January, I had a car accident that was my fault. I admitted liability but, when I went to check my insurance documents, realised that my policy had expired. Great!

    I complained to the financial ombudsman that my insurance company had not told me the policy was due, but I lost as they insisted they had, and the ombudsman believed them.

    Anyway, that leaves me with a massive bill to pay now as the third party's car was a write-off.

    I spoke to a rep from her insurance company by phone and he said the damage would be about £4,800. I asked him if that was the full and final figure, and he said yes. I also stated that I would probably pay off the amount in instalments.

    He then emailed me all the payment details but the price was different - about £4,900. I emailed to query this and he apologised and said he'd missed off the £100 excess.

    I then spoke to him on the phone again and said I wouldn't be paying the extra £100 as he'd told me the £4,800 figure was "full and final". I also offered to pay the £4,800 figure in full - I just want this out of the way.

    So am I within my rights to pay the lower amount? He mentioned getting solicitors involved if I didn't - but would they really chase me for £100 if I've already paid £4,800? I hope someone can help!
Page 1
    • molerat
    • By molerat 7th Sep 17, 3:25 PM
    • 17,330 Posts
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    molerat
    • #2
    • 7th Sep 17, 3:25 PM
    • #2
    • 7th Sep 17, 3:25 PM
    Have you got it recorded or in writing ? You can ask for a transcript of the telephone conversation if not. You need to complain to them in writing and see where it goes.
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    • nerion
    • By nerion 7th Sep 17, 3:35 PM
    • 5 Posts
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    nerion
    • #3
    • 7th Sep 17, 3:35 PM
    • #3
    • 7th Sep 17, 3:35 PM
    No, not recorded, although I have emailed them. OK, I shall ask for a transcript of the telephone conversation. Good idea, thanks.
    • Mungo76
    • By Mungo76 7th Sep 17, 3:48 PM
    • 68 Posts
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    Mungo76
    • #4
    • 7th Sep 17, 3:48 PM
    • #4
    • 7th Sep 17, 3:48 PM
    I can't see you getting very far as this was a simple mistake.

    Your position has not been prejudiced in any way, they got in quick to point out their error.

    Plus you have no right of complaint whereas they have the right to take you to court.
    • rudekid48
    • By rudekid48 7th Sep 17, 3:51 PM
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    rudekid48
    • #5
    • 7th Sep 17, 3:51 PM
    • #5
    • 7th Sep 17, 3:51 PM
    Also bear in mind that this 'full & final settlement' is the outlay of the insurer only. The other party can still come after you for uninsured losses such as injury, hire car, loss of earnings etc. The £100 excess is an uninsured loss so if you do not pay it to the insurer then the third party will probably sue you for it anyway..
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    • dunstonh
    • By dunstonh 7th Sep 17, 5:15 PM
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    dunstonh
    • #6
    • 7th Sep 17, 5:15 PM
    • #6
    • 7th Sep 17, 5:15 PM
    I complained to the financial ombudsman that my insurance company had not told me the policy was due, but I lost as they insisted they had, and the ombudsman believed them.
    The distribution of the renewal notice is automated and the insurer would have the date/time of issue and the copy letter/notification. The assumption in law that it is received.

    However, the onus is still on you to ensure you are insured. Your insurer offered terms for 12 months of cover. It fulfilled that. It was your responsibility to make sure you were insured after that.

    I then spoke to him on the phone again and said I wouldn't be paying the extra £100 as he'd told me the £4,800 figure was "full and final". I also offered to pay the £4,800 figure in full - I just want this out of the way.

    So am I within my rights to pay the lower amount?
    A mistake does not give you any legal entitlement to a lower amount. The mistake could easily have been £100 cheaper. If that was the case, would you expect them to say that the cost was £4700 as we included the excess twice by mistake but as we already told you £4800 you have to pay the higher amount. it works both ways.

    He mentioned getting solicitors involved if I didn't - but would they really chase me for £100 if I've already paid £4,800? I hope someone can help!
    Who knows. We have seen companies chase people via the courts for smaller figures. Its actually quite cheap for a large company to employ junior or trainee solicitors to do bread and butter stuff like this. Especially as the bulk of the work can be done by low paid, non-legal qualified clerical workers. And it would not just be for £100. They would be looking for an award of costs and the small claims court allows for that. That is normally restricted to £200 but you may also have to pay £90 for witness attendance as well as their travel and accommodation costs. If the judge feels you have been unreasonable, you may have to pay towards the other party's legal costs.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • rs65
    • By rs65 7th Sep 17, 6:15 PM
    • 5,279 Posts
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    rs65
    • #7
    • 7th Sep 17, 6:15 PM
    • #7
    • 7th Sep 17, 6:15 PM
    Also bear in mind that this 'full & final settlement' is the outlay of the insurer only. The other party can still come after you for uninsured losses such as injury, hire car, loss of earnings etc. The £100 excess is an uninsured loss so if you do not pay it to the insurer then the third party will probably sue you for it anyway..
    Originally posted by rudekid48
    Exactly this. The insurer probably got it right as their outlay was £4800. The policyholder is due the £100 and maybe other losses.
    • nerion
    • By nerion 8th Sep 17, 9:44 PM
    • 5 Posts
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    nerion
    • #8
    • 8th Sep 17, 9:44 PM
    • #8
    • 8th Sep 17, 9:44 PM
    Thanks everyone. So should I just bite the bullet and pay the extra amount then?
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