Car Insurance - Administration, Existing Claim

LisaDenise

I was involved in an RTA a few months ago, not my fault, and my car had to go into a garage for repairs, as authorised by my insurance company.

A few weeks ago I was sent a letter from the garage asking me for payment for the repairs as my insurance company had failed to pay. I called my insurers who confirmed that they had taken care of the matter. I have also heard rumours that my insurance company may be going into administration!!!

I have now received another letter from the garage to say that the outstanding balance on the invoice has not been paid. Only £270 out of the £634 has been paid to date. They are now looking to me to pay the balance as I was the beneficiary of the repairs.

It's Sunday so I can't get hold of my insurance company until Monday morning, what I would like to know is if the garage has the right to contact me to try and reclaim the monies and if my insurance company are going into administration am I liable to pay for these repairs or am I protected in any way?

chanz4

yes they can contact you, as its your policy

olly300

LisaDenise wrote: »

I have now received another letter from the garage to say that the outstanding balance on the invoice has not been paid. Only £270 out of the £634 has been paid to date. They are now looking to me to pay the balance as I was the beneficiary of the repairs.

Next time you call your insurance company make a note of the time, date and who you spoke to and what you discussed.

If they then refuse to pay the garage or you have to pay the garage to get your car, then you need to get your policy booklet out, find the claims complaints address and put in a written complaint to the insurance company.

Send any complaint letter and copies of receipts to the insurance company by recorded signed for post as insurance companies like many companies have a habit of losing letters where they have to pay out money.

If the insurer does go bust then they will be covered by the FSA scheme which means you will eventually get your money. More information here: http://www.fsa.gov.uk/Pages/consumerinformation/compensation/contact/index.shtml

InsideInsurance

Which insurer is it? The rumour mill normally would have a potential bankruptcy making a lot more noise.

Subject to what you have signed with the garage then typically you'd have no contract with them and so their only recourse is against the insurer. Obviously they'll sensibly look for other routes to get it paid, and they'd be entitled to do so, but I do not believe they'd have legal redress against you.

Some insurers can be months behind with handling "none urgent" items and given you say the accident was only a few months ago, invoice wouldnt have been raised until after the repairs were done etc it doesnt look like anything to worry about yet.

Quentin

LisaDenise wrote: »

I have now received another letter from the garage to say that the outstanding balance on the invoice has not been paid. Only £270 out of the £634 has been paid to date. They are now looking to me to pay the balance as I was the beneficiary of the repairs.

Assuming you never signed anything to the contrary, and didn't ask for any other work to be done, then the garage is trying it on.

They were instructed by your insurer not you.

Just pass on their letters (unanswered) to your insurer.

LisaDenise

InsideInsurance wrote: »

Which insurer is it? The rumour mill normally would have a potential bankruptcy making a lot more noise.

Subject to what you have signed with the garage then typically you'd have no contract with them and so their only recourse is against the insurer. Obviously they'll sensibly look for other routes to get it paid, and they'd be entitled to do so, but I do not believe they'd have legal redress against you.

Some insurers can be months behind with handling "none urgent" items and given you say the accident was only a few months ago, invoice wouldnt have been raised until after the repairs were done etc it doesnt look like anything to worry about yet.

The company is called Broker Insurance. When I look online I do see some references as to this company going into administration. I found these people through One Stop Insurance.