Car insurance 'Payment in lieu' ??!?!!?

kirsty_john

Hi there, we're new to this site and have a question...

2 weeks ago, our car was side swiped by a van driving too fast in the snow, he lost his back end, which swiped the indicator light and mirror off, and dented the door/front wing.

The insurance company originally said they were writing the car off as was going to cost £2000 to fix (its w reg picasso, with high mileage but we've had ALOT of work done to it in the year we've owned it), however, we've got three quotes for the work, the lowest being £1143.... I explained (and argued and argued some more) with my insurance company that writing the car off is not an option, if i dont have a car, i cant get to work etc etc, im fully comp, and none of it was our fault at all.

Anyway, they rang today to say that they're willing to pay the £1143 in lieu in order for us to keep the car and get it fixed.

My question is (because the person I need to speak to at insurance company is not there and no one seems to know anything about anything there)..

What exactly does this mean??

Does this mean my car is written off, I'm not too fussed about selling it on, I never plan to sell it on, but I am worried about getting insured in the future (I'll never ever EVER use this insurance company again).

Alll help and answers are more than welcome.

Thanks in advance

Kirsty & John

ScottishSapper

Hi and welcome to MSE

Whose Insurance company?

The insurance company originally said they were writing the car

I am assuming that you are claiming on the Van drivers insurance.
Therefore:

I am worried about getting insured in the future

This will not affect your insurance, count against you or your no claims.

Does this mean my car is written off

Not sure about that part, you would have to confirm with the inurance company

Homersimpson

I did this once on an old Riley Elf when someone ran into the back of it and their insurers wanted to write it off , basically as I understand it, it means that they give you the money to get it fixed, therefore the car is not written off and they have no responsibillity/liability for the repairs. Be careful though as if your repariers find more damage and need to charge more than the quote (which is likely to be an estimate when you look at the paperwork) then the insurers won't pay any more as they have settled with you for the agreed figure.

Its a bit like giving you some compenstation for your damaged car, what you do with the money is up to you.