Total Loss insurance Claim

kgkev

I was involved in a car accident and the other party has taken full responsibility.

I have been in contact with thier insurer (Admiral) and have agreed a settlement from the outset without any vehical inspection / hire car etc.

I have in writting an agreement from them that they will pay £1975

For us to settle the claim on a total loss basis the vehicle is put on a register and we can offer £1975, with a salvage amount of £395.
If you wish to keep the vehicle we would deduct the salvage amount from the offer.

I negotiated this up to £2000 verbally and agreed on Thursday.

I have an email from them confirming the Payment was being processed and should be in my Bank on Friday / Monday.

On Saturday I put a deposit down for a new car @ £2000


I checked the bank this morning and the payment still hadn't arrived.

I have now called back admiral and they have told me that my car has been a total loss before and they will no longer pay £2000. I did not know the car had been a total loss before.

They have now offered £1000.

This has really screwed me up as I have no way to pay the remaining £1000 for the new car. I'm in my last year of an IVA and have no access to any addition funds.

What should I do?

alistair.long

Hi, you are in a tight situation.
As your car has previously been a right off then usualy you will loose out 25% of the value of your car, not 50%. So you can call admiral and get them to sort this out. Also as you have put a big deposit on the car, I would try and cut my losses e.g. let the car owner keep some cash and get the most back, or tell them to hold the car as they have a large sum which secures you having the car.

As they are messing you around I assume you havent had a written offer from Admiral?
see if you have legal expense insurance, tell your insurance to get a solitor for you to beat them up for you.
Or contact them again and tell them to send that offer to you in an email, that will then secure the agreement, and a solicitor may act for you "no win no fee" with this email.

vaio

not tight situation at all, it's perfectly clear and they are wrong.

Point them towards s14 of http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html#14 and tell them (in writing) that if they don't pay as previously agreed you will lose your deposit and recover it from them via the FOS if necessary together with any other out of pocket expenses incurred as a result of them messing you about

dacouch

vaio wrote: »

not tight situation at all, it's perfectly clear and they are wrong.

Point them towards s14 of http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html#14 and tell them (in writing) that if they don't pay as previously agreed you will lose your deposit and recover it from them via the FOS if necessary together with any other out of pocket expenses incurred as a result of them messing you about

As the OP is claiming directly off the third party and not his own policy the Ombudsman will not normally get involved so the threat of the Ombudsman will not normally work unless the claims handler does not realise this.

It is well worth referring to the Ombudsman's guidelines as it might work but there is no guarantee when not dealing with your own insurer

kgkev

Thanks for the replys.

I called the ombudsman and they confirmed that they couldn't help (for the same reason as above poster) and I should seek legal advise.

I decided to call admiral back and speak to an manager.

I explained the situation and they agreed with 10 minutes that they made the error and they will pay the £2000.

Just got to wait for the money now!!!



Sorry my original post was not clear.

1. The deposit was £50 - The value of the car was £2000
2. I did have it in writting. (£1975 anyway)

alistair.long

sorted, slap them with the proof, lol. Remember to give them a deadline, e.g 7 days to give the money, otherwise they will just take their time.

The ombudsman will not assist as they only assist if they are your insurance. As you are dealing with someone elses insurance the FSA, and FOS, etc will not get involved.