Insurance Co not paying out

cch_2

I took out a fully comp policy with Swiftcover with my son as named driver. He had a minor bump and Swiftcover paid out the third party, but is trying to avoid paying out for our vehicle. They say it is a total loss, I have had it examined privately and that is not the case. I took the car to swiftcovers approved repairer, and they took pictures, meanwhile I cancelled my direct debit as they automatically renew. Fortunately?! for me there was one payment outstanding, and they tried to renew anyway, which of course was unsuccesful as the car is now off the road, stripped, ready for repair. By their own admission there is approx £300-£400 of value left in the car, they are insisting that I get quotes on letterheaded note paper, even though I have made it clear that any repairs are being done privately, ( I am an ex military mechanic and a friend is a bodyworker with his own business who is doing the welding/jigging etc.) They have also set their attack dogs onto me,namely Regal credit and now Scotcall, who are threatening home visits and so on. Swift cover have offered no help or explanations and seem determined to retain salvage of my vehicle (A Wreg fiat seicento) the car has many miles left in it. As Swiftcover seem to not want to pay anything to me and if that is the case, then I pointed out they have only provided me with 3rd party cover, so as I have already paid sufficient premiums and more to cover that level of insurance, thenthey should be satisfied with that. I would really appreciate some advice here, as paying them sticks in my gullet, a search shows that they make a habit of tricks like this. what are my rights and can I tell the likes of Scotcall to go away. I am really annoyed as I feel that Swiftcover are conveniently using their t and c's to try to cheat me. Thanking you all in advance. Cch.

Quentin

They haven't just given you third party cover, they are exercising their right not to do uneconomic repairs. (If the car is only worth £400 any repair would be uneconomic)

You do owe them money, so should pay up or face the consequences (which they seem hellbent on getting their money).

Pay the outstanding money you owe, then discuss with them their settlement figure with you, saying you want to buy back the car from them and you can restore it. (Assuming it's not dangerous!)

iamana1ias

What's your other car?

cch_2

Hi Quentin, Yes the car is only worth a pittance to them, though it is in near perfect order, broken bumper, headlight dented wing etc. They are aware of this and I do not expect them to pay all the expenses. The car was my late fathers who wanted my eldest lad to have it. We are repairing it as an exercise in car maintenance and servicing. This will benefit all my children. They do not own the car, they are simply refusing to pay the outstanding book value left in the vehicle. They are saying that they must strip it and because the cost of them doing the work will exceed the value of the vehicle, then they reserve the right to retain the car. I dont want that, any monies due however small will go towards funding the repairs. Which as we are using 80% second hand parts are not going to be a lot.! Yes I do owe them money, my worry is that even if I pay I will still be "done" as far as remaining value in the car is concerned. would appreciate your views. Cch

cch_2

Hi Iam an alias, other car is 4x4, formally insured with swift now cancelled and with more than. Although internet search seems to indicate that a lot of online insurers try to "cut costs" at the expense of their customers.

Quentin

You need to get evidence of its value to negotiate with them.

But I do see problems:

1) You will have an excess to be deducted from the settlement, - without knowing your excesses involved these could wipe out the value of the car (esp if your son is under 25)

2) You owe them some money which they will deduct from any settlement

3) They may have already paid out over your own claim eg. to recover your car, so cancelling your side of the claim could be expensive for you.

cch_2

Hi Quentin, They told me (unofficialy) that after excesses there was approx £3 to £4 hundred pounds and I owe them £41 pounds. I am over 50 and my son is 26 with a clean licence and no previous accidents as have I. The attack dogs (regal credit and scotcall) say that Swiftcover cannot deduct the amount outstanding from any payment and that I must pay them. I asked them had they bought the debt and they replied no. I hate having outstanding debts and those I do have, credit cards etc I pay by standing order with top ups. I have the feeling that Swift are trying to get out of paying me by using and twisting their terms and conditions.

Quentin

If you owe them just £41, and you agree it's correct (ie the sum is correct), (not whether you have had value for money) why not clear that up and move on to negotiating with them over the correct settlement figure?

You have the ombudsman to turn to if they don't stick to their ts + cs!

vaio

FOS valuation rules

http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html#9

I'd also pay them what you owe them before they cancel the policy which could have far reaching consequences for you

cch_2

O.k. everyone that seems to be the way forward, paying the £41. I found the official valuation for the vehicle and it is pretty much what they said. They said between 300 and 400 pounds and glasses say between 300 and 600, so tommorrow there will be a postal order for swiftcover and I will log back on and let you all know the outcome. This has been dragging on now since February this year. So thanks for now to Quentin, Iamanalias, vaio, and anyone else who may post advice on this. final what to do about the debt boys,so far I have told them I am dealing only directly with swiftcover and so will not pay them anything. As I am now going to send monies to Swift cover, should I give the debt companies a courtesy call to let them know,or just leave it with Swift to deal with them?. Cch

iamana1ias

As you've clearly been fronting you're lucky the insurers are offering anything at all.