Car Write off but not my fault

mattymoo

Hoonercat wrote: »

I'd be surprised if you get anywhere with the legal cover.



You will have a vehicle once the insurance sends you a settlement, or am I missing something?

No - if you are claiming from your own insurers they will assume ownership of the salvage and will pay the settlement to the finance company, leaving the op to settle up the remaining £3k.

If they claim against the third party, they will keep the vehicle and receive a cheque for the value of the vehicle. £8k would still be owing on the finance though.

Hoonercat

Ah, thanks for that, I hadn't realized the insurance co settle with the finance co, no wonder the op is concerned.
I'm shocked to learn this, no way I'll be buying a car through finance.

Quentin

mbt1 wrote: »

Thanks for all your comments, we do have legal protection so will go down this route..

In that case, make sure you inform your insurer now that you want to withdraw your claim.

This will ensure you have no claim on the record, so that they won't consider the policy "paid up", and you will be able to put your replacement onto the policy.

(Also keep your car - if you want).

hellokitty08

Bummer!

I got a bonus in my policy, if my car gets written off in the first year they just give me a brand new one! lucky me. Yay.

mbt1

Hoonercat wrote: »

I'd be surprised if you get anywhere with the legal cover.



You will have a vehicle once the insurance sends you a settlement, or am I missing something?

Maybe I am thi is my first time dealing with this. If we get a payout I assume that will have to go to the finance company? Plus will we have to pay the remaining difference with no car.

But like I say my insurance company not helping much and i dont really understand.

thanks

mbt1

Hoonercat wrote: »

Ah, thanks for that, I hadn't realized the insurance co settle with the finance co, no wonder the op is concerned.
I'm shocked to learn this, no way I'll be buying a car through finance.

Or me again!

Quentin

mbt1 wrote: »

If we get a payout I assume that will have to go to the finance company? Plus will we have to pay the remaining difference with no car.

But like I say my insurance company not helping much and i dont really understand.

Your payout will go direct to the finance company. Note that if you claim directly off the third party, then no excess will be deducted, whereas a claim via your own insurer will mean your excess will be deducted from whatever value you agree for the write off.

Your insurer cannot do anything about the depreciation which has affected you. (It would have been the same "loss" had you paid cash for the car)

Hoonercat

Would it be worth contacting the finance co and explaining the situation? As a goodwill gesture they may agree to pass the £5.5k back to you which would allow you to buy a replacement, they won't lose out as you'll still be paying the remaining balance. I know it's a long shot but you don't know unless you try.

mcjordi

if you dont have GAP (it may be included in the finance deal check the paper work)

then the finance company may allow the balance to be loaded onto another car

missile

I am sure it is extremely gaulling to have your car written off and then find out it is worth much less than you thought but I don't get it. Why do you blame the big bad finance company?

OP would have been in exactly the same position with a personal loan or if OP had sufficient funds to buy the car outright then they would not have had any liability but would still be out of pocket.