My car is most likely to be written off - what happens next? Car + Insurance

orange-sox

Apologies in advance for all the questions I suppose I'm still shaken up and I have no idea how this all works - I was involved in a car accident yesterday in my 12 year old ford fiesta and as a result I believe my car will be written off (as will my no claims).

What will happen with my insurance in the meantime? I only renewed late January so ideally I would prefer to stay with my insurers (if they'll keep me) once I have purchased a new car, is this likely to happen? Or is it more likely that they'll drop me like a hot potato and I'll need to get new insurance? (if this is the case will I get refunded the rest of my premium?)

Regarding replacing my vehicle, I inherited my fiesta from my partner as a little run around as I only worked 5 miles away, however now I'm at uni and doing about 200 miles a week for 18 weeks of the year while I'm on placement so need something economical and reliable. Am I best off buying new (or as near to new as possible), or should I go for something about 5-6 years old and pray that it's been well looked after and won't cost me a bomb?

I get a fairly substantial bursary each month, and partner earns more than enough to support us both so I am hoping that I will be able to get some sort of car finance for a newer car rather than another money pit like the fiesta was (in the last 12 months I have spent in excess of £900 on that car in repairs).I've had a look around on the internet for something suitable, and have come across the idea of buying new with three years of servicing included, of course no MOT for three years and cheap tax - for me the idea of knowing exactly what I will be paying out each month is very attractive.

Thanks in advance for any advice

thegirlintheattic

I would say go for nearly new. I too had a old money pit and decided that it would be more sensible to get into a bit of debt to get a decent car rather than keep spending out on repairs for my old car or get another old car that could have the same issues.

I would think your only stumbling block will be the fact you are a student. Even if you can afford the payments many fiance companies will treat you as unemployed.

chorlton

Although the free servicing/no MOT with a new car is appealing, don't forget to consider depreciation. Over 4 years, a new small car can lose about half it's original value - easily something like £5-£6 thousand over 4 years - far more than servicing and MOT on 3 or 4 year old car would cost you.

I'm pretty sure that once you claim for the write off of your fiesta you dont get a refund on the remainder your policy - so you'd be best to shop around for the best new deal.

fivetide

Read your policy docs. You won't get a policy refund, after all you've effectively 'used' the policy however, some (not all) companies will keep the policy in place for the full 12 months so you might be able to add another vehicle.

Expect to pay an additional premium though and you might be better off starting a new policy depending on the type/age of the car you buy.

5t.

paddedjohn

Was the accident your fault? Are you claiming on your own insurance or the third party's? If you are claiming on your own you will probably receive very little by way of compensation by the time your excess has been paid and your policy will need to be settled in full.Do the math first, it may be cheaper just to cancel the claim and transfer your insurance onto another vehicle.

thegirlintheattic

chorlton wrote: »

Although the free servicing/no MOT with a new car is appealing, don't forget to consider depreciation. Over 4 years, a new small car can lose about half it's original value - easily something like £5-£6 thousand over 4 years - far more than servicing and MOT on 3 or 4 year old car would cost you.

A good point but it depends on how long the OP is going to keep the car. If you are keeping the car for the foreseeable future deprecation is less of a factor then if you want to only keep it for 2/3 years.

orange-sox

paddedjohn wrote: »

Was the accident your fault? Are you claiming on your own insurance or the third party's? If you are claiming on your own you will probably receive very little by way of compensation by the time your excess has been paid and your policy will need to be settled in full.Do the math first, it may be cheaper just to cancel the claim and transfer your insurance onto another vehicle.

This has really confused me - I'm claiming on my insurance... I wasn't aware you could even claim on someone else's insurance. I honestly don't know what's happening re: fault. I've admitted partial, it's a very complicated situation to explain and I'm struggling to type with one hand as it is :-(

I pay my policy in one payment every year, so it's already paid for. What do you mean by cancel the claim? I'm sorry if I'm asking lots of questions but I'm really struggling to get my head around everything!

MX5huggy

If someone crashes into you claim on their insurance.

As your car is worth about £200 at best (before the accident) you would get £200 minus your excess as a payout most excesses are about £250 so you get nothing therefore not worth putting a claim in and you get to keep your no claims bonus. Which is likely to be reduced by 2 years, not completely lost if you claim.

But have said that you have a more complicated situation as the other party are also claiming so best to leave it to the insurers to sort it. You should not have admitted any level of liability at the scene. Bet they come back saying 100% your fault.