Tesco Car Insurance Claim

AlecEiffel

Hi all.

I'm in the middle of a claim with Tesco.

I was involved in an accident where I am not liable (unofficially at the mo as it is still being disputed, but the highway code and witnesses say the other driver is liable). My car has been written off as a result.

I am using a hire car from a firm Tesco put me on to. This is billed to the other driver's insurance, or if he isn't found liable is covered by an insurance so I am not personally liable for the bill.

I have received a cheque for the agreed amount which I have banked but it hasn't cleared yet. This is for an agreed negotiated amount minus the excess.

Tesco also put me in touch with a solicitors who are sending me paperwork and will attempt to get my excess back from the other driver's insurance, plus any other uninsured losses (hopefully my £25 of calls it's cost so far).

I have just received a letter from Tesco asking me to contact them. I rang them this eve and they advise that I have 28 days to buy a new car or they will cancel my policy. This is from the date the cheque was sent which was 5 days ago, so I'm down to 23 days by the time I even know!! As the liability is still being disputed it is showing on my insurance as an at-fault claim, and if the policy is cancelled I apparently have to pay the remaining 11 months of the policy in one hit.

The next two weeks are going to be super busy for me as I'm moving house and getting married. I am then going on a two week honeymoon. This means that I have only around 14 days of the 28 days available to find a car. And as i am away for over two weeks I am going to struggle to take holiday to find a car and the weekends are full of prep. Also it means having to rush either buying a car for the value of the settlement (minus the excess at mo) or sort finance out (savings have been used for the wedding, honeymoon, and new house). I had hoped to just get buses between the time the hire car runs out and I go on my honeymoon as I have so much else to organise that I would rather have that hassle (buses are at silly times and not very convenient) than the hassle of rushing a car buy.

I told Tesco this who said they may be able to give me an extra couple of weeks but I'm not sure if that was just to placate me on the phone call. They are getting in touch a few days before the wedding to discuss.

Does all this sound right??

I have told the claims dept I am unavailable and out of the country for over two weeks and so won't be able to respond to correspondence.

If the other guy is found liable prior to this will I still have to find a car within the 28 days? Will I pay for any policy cancellation if I don't? Can't I keep on paying the premium monthly even if I don't have a car for a bit as I am going away?

Sorry this is so much, It's quite complicated dealing with so many people!!

Quentin

AlecEiffel wrote: »

Does all this sound right??

Yes. As far as them giving you 30 days to get a replacement (or they cancel your policy), this is all set out in the policy which you will have agreed to when first taking out the policy.

(This is an improvement on some policies which end when a write off happens)

mikey72

If they cancel your policy, you won't get a refund.
If you're at the end of a £200 a year insurance, that won't really matter.
If yoy've just paid £3000 a week ago for the years cover, it's worth buying a cheap car to keep the insurance alive.
Then you can shop around for what you want.
You'll have to pay the admin fees, and probably a premium on the mid term change, but you'll have to balance that against losing the rest of your existing premium.

edit, - just read you're one month in, so you do stand to lose 11 months.
This may be recoverable as an out of pocket expense, but some insurance supplied solicitors won't claim this, as they probably don't like the idea of setting a precedent in favour of the customer.

AlecEiffel

Many thanks both of you for your replies.

I did realise I would be liable to pay for the rest of the year and couldn't leave without paying for the balance of the policy.

My main issue is timescales, ie I lost 5 of the 28 days in Tesco's admin lead time and posting the letter second class (the letter told me to call them ASAP, why didn't they call me as it was urgent??) and I'm out of the country for the last 8 days of the 28 days and getting married two days before that, essentially leaving me with 13 of the 28 days available, during which I am at work, moving house, and finalising wedding plans.

Whilst I do realise that isn't Tesco's fault and 28 days would normally be sufficient, circumstances have conspired against me. I was assuming as I pay monthly I would just carry on paying monthly regardless of whether a replacement car was in place yet or not, then when a replacement car is sorted they would adjust the premium accordingly.

A couple of what-ifs if you don't mind

If the policy is cancelled and I have paid the balance of the premiums, will I still have use of my legal protection? Will the solicitors still pursure the other guy for my excess and assorted other costs?

If the policy is cancelled will Tesco still pursue the other guy to ascertain liability (it was blatently not my fault but he hasn't admitted liability yet) so that my no-claims can be restored?

If the other guy admits liability where do I stand concerning the cancellation of the policy? Am I liable for the balance of the premiums or can I walk away and just pay the normal cancellation fees?

Thanks for your help so far!

Quentin

AlecEiffel wrote: »

My main issue is timescales, ie I lost 5 of the 28 days......................... If the policy is cancelled and I have paid the balance of the premiums, will I still have use of my legal protection? Will the solicitors still pursure the other guy for my excess and assorted other costs?

If the policy is cancelled will Tesco still pursue the other guy to ascertain liability (it was blatently not my fault but he hasn't admitted liability yet) so that my no-claims can be restored?

If the other guy admits liability where do I stand concerning the cancellation of the policy? Am I liable for the balance of the premiums or can I walk away and just pay the normal cancellation fees?

Although not too much better, their policy does say you have 30 days to replace after a write off, not the 28 they seem to have told you (check your policy wording).

You should still be able to use your legal protection, (though they will only continue to be funded by the insurance whilst they believe you have a good chance of winning the liability issue, which would happen whether or not the policy was cancelled)

Tesco will continue to pursue the third party until liability is agreed between both insurers.

Get any policy cancellation charges added to your uninsured losses claim.

mikey72

Quentin wrote: »

...........Get any policy cancellation charges added to your uninsured losses claim.

I have seen at least one thread on here where an insurance appointed claim management company refused to pursue this aspect of a claim against a third party.

Check with yours that they will put the claim in, if you are thinking of letting the policy expire.

AlecEiffel

Thanks for the advice. Will ask the solicitors about potential lost premiums when I hasten them about some paperwork later.

Tesco defo said 28 days over the phone, though I shall indeed check my policy book when I get home later. Unfortunately even if it is 30 days the two extra days are when I'm on my honeymoon anyway so unless they give me the extra days when I get back it won't make any difference.

Thanks for the input.

anniecave

If the admin fees aren't that high for changing details, ask around your neighbours, friends or work colleagues until you find someone who has an old car sitting on their drive they aren't using and is currently uninsured (and declared SORN). Then agree to "buy" that car from them, and change the insurance over to that car, then "sell" the car back to them when you are back from your holidays. You can use the address where the car is kept overnight is the address where the car is.

AlecEiffel

Quentin wrote: »

Although not too much better, their policy does say you have 30 days to replace after a write off, not the 28 they seem to have told you (check your policy wording).

I have looked through the policy booklet and can't find any mention of cancelling it following a write off, with either 30 or 28 days notice. I've looked in the cancellation section and and section regarding total write offs. I have found the generic bit where they say they can cancel it and if they have made a payment they expect full premium payment (not disputing this bit), but nothing of the time-scale to replace a vehicle. Do you know the section please?

AlecEiffel

Further Info-

My policy booklet (sent either when I renewed with effect from 1 Aug 11, or maybe during July with the renewal quote) definitely has no mention of the 30 day period to buy a new car. It is dated 1/11 on the rear of the booklet.

However, I have looked up the online booklet on Tesco's site, and in the section for policies started before 11 October 11, it states "In the event of your car being written off, you will have 30 days in which to replace the vehicle or the policy will be cancelled". This version is dated 8/11 on the rear page.

Where do I stand on this as I was obviously sent an old booklet at the start of my policy, as the policy started on the first day of the month the new booklet came out?

Thanks for any continued advice you may be able to provide!

AlecEiffel

More Info - please please read and respond if you can!!!

Right, the picture has changed a lot. Tesco insisted I have 28 or 30 days to get a new car (depends who you talk to) or the policy is cancelled with me paying the balance of the premium. I can apparently pay by my normal instalments or in a lump sum.

BUT........

Today I rang to check on the status of liability. Apparently Tesco have received a cheque from the third party's insurer, so they have obviously accepted liability. :j

So, whilst I assume I still have to get a car or the policy is cancelled, as Tesco have now not paid out as such (paid out and been reimbursed) can I cancel the policy and walk off for free/minimum cancellation fee? Or do i still lose the premium?

Thank you for any help!!