Hire Purchase Car Written Off !! Whats The Best Mode Of Action..??

con-fused_2

I was watching telly this evening and there comes CARCRAFT advert.. and i thought why not i can afford it so why not..
Next week i went up to their depot in chertsey and got myself a sporty looking car.
Then everything was going along nice and sweet .. in the fourth month.I was goin to work and got involved in the accident.
Car has been declared written off and the insurance company has offered me the amount just short by few grands but I have no worries about it cuz i got GAP insurance protection.
Now the real question.. Now that the car is written off and the insurance company has already made their offer(i dont know if the HP ppl have accepted the offer ). What happens to the repayments i was making for the Hire Purchase.???:eek: :eek: .
I thought as the car no longer exist , i shouldnt be liable for anymore repayments because whatever amount is gonna go in arrears due to low offer made by my insurance company will be covered by GAP policy.
I am in proper confused state.. and i stopped the direct debit as i needed money for new car and i knew the !!!!!!s would take the money if i hadnt.
The local agent for the H.P company says i will have to pay until the case is settled between the H.P and the insurance company.
Does anybody here knw whats true or maybe someone must have gone through the similar cicumstance... PLEASE HELP ... I would appreciate suggestions not sarcasm...
Cheers.....

tictax

you still need to continue making the hp payments until this is setted. GAP insurance should cover the difference between the insurers payment to the hp company and the outstanding balance.

have you started the GAP claim yet? if not, you need to do this immediately.

remember that by stopping your payments you are running the risk of seriously damaging your creditworthiness as the hp company will report to the credit reference agencies that payment has not been made.