car insurance won't pay out for electrical fire in Renault Clio

Bazza73

Hi all,

Have a Renault clio that caught fire (apparent electrical fault) on the drivers door window/mirror switch area. Insurance company refuse to pay out (cover is fully comp). Recovery company (called by the insurance company) won't release the car until their fee is paid.

What options have I got?

As it was a fire - why/how can the insurance company refuse to pay out?

Can I take Renault to court?

Should the insurance company pay out and take renault to court?

Thank-you,

B.

dacouch

What reason have the Insurers given for the refusal to pay out ?

Bazza73

They say it is not covered as it was an electrical fault.

Wording in their policy is:

"Policy does not provide cover for ...

2) mechanical, electrical, electronic or computer
failures or breakdowns."

From googling this, it seems to be a very common clause in most car insurance policies that you are not covered for. I think this is a very thin line.

B.

dacouch

Lol, which Insurer is telling you this

raskazz

Who is the insurer?

Typically wordings will be to the effect that the part whose failure caused the fire will not be covered; but that any subsequent damage as a result of the fire is covered.

patman99

Don't know why they don't add "driver error, dangerous road conditions and failure to have your vehicle serviced at an approved garage" to the list of cop-outs they keep coming out with.

'Mechanical failure' always makes me laugh. Even the most well-maintained vehicle can suffer a catastrophic parts failure leading to loss of control and a crash. I guess the insurers would still try to wriggle-out of paying-up.

Bazza73

Its via Budget Insurance which is a trading name for BISL Limited on behalf of Chaucer Insurance.

The recovery company is Wrights Accident Repair.

societys_child

Bazza73 wrote: »

"Policy does not provide cover for ...

2) mechanical, electrical, electronic or computer
failures or breakdowns."

B.

Sounds like they're trying it on.

You're not asking them to repair the electrical fault but to cover the fire and theft part of the policy which is completely different.

dacouch

Rubbish broker and an Insurer at the crap end of the market who do not like paying out (Especially fire claims).

As Raskaz mentioned the intention of the exclusion is so the Insurer do not have to pay a claim to replace say your stereo if it breaks down or your head gasket if it blows. It is also for claims such as a fire where they won't pay for the electrical part that caused the fire (In your case the door wiring loom or electric window etc) but will pay for the consequential fire damage to the car.

The majority of fires in cars are electrical faults and the exclusion is common with most Insurers (For the above reasons).

Send an "Official Complaint" to Chaucer (The address is in your policy), they have to investigate the letter fully and respond. The letter should be read by someone who actually knows their job and realise someone has made a major mistake.

dunstonh

Yeah but you know better perhaps, because didn't you already share this weekend that you've only ever sold three PPI policies in your long career?

Why does that not come as a surprise.

Bazza73

sorry for the delay in updating this. After complaining some more to the insurance company, they at least lifted the fee for Wrights collecting the car. Still wouldn't pay out for the damage. In the end, Renault ended up fixing the car for free. They were not too pleased with the insurance company trying to blame a bad batch of cars/models as a known fault. Needless to say, wont be using Budget again!!! Thanks to all who posted.