Burnt Out

alonehiker

My car has just recently been insured (less than one month) F/C but it was burnt out when I was away for the weekend. I'm worried about the finance as the outstanding amount is more than the cars worth. When I insured the car though I insured it to the finance amount. What will happen? Will I have to settle the balance?

Quentin

Yes. (Assuming no gap insurance in place)

mikey72

For a guide on valuation have a look at

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

You may have to fight to get even this much.

alonehiker

Quentin wrote: »

Yes. (Assuming no gap insurance in place)

I have GAP insurance but I wasn't using the car for at least 6 months so didn't insure it. I only recently re-insured it. Do GAP not require a policy to be in constant place from the start date of their own policy?

luci

Read the T&C's of the Gap insurance. Who is it with?

InsideInsurance

GAP does generally require you to have comprehensive motor insurance on the vehicle. On the basis you did have cover at the time of the incident it is unlikely that your prior period of no cover will be an issue.

Of cause the fact you've just bought the policy and now making a total loss claim may make the motor insurer investigate everything a little more thoroughly than they would have if you'd been a customer for 10 years.

forgotmyname

Expect a seemingly never ending list of questions and interrogation.

Insured for the finance amount, You could have insured it for millions of pounds but they will only payout market value.

The GAP should settle the rest.

But as mentioned they maybe quizzing you as to why it was unused and uninsured and where it was parked during that time etc.