Car with finance still running on it stolen insurance want to pay off finance

themightypierre

The validator the insurance company have employed have told me they have validated my claim and I should receive £4999 which I am content with. However they are saying that the insurance company will give me the remainder after paying off the finance. They say this is because people sometimes stop paying the finance when they don't have the car.

I'm curious if this is standard. I really wanted the money to buy a new car and I was going to leave the finance to run. Reason being that in the last few years I have had a few late payments on my credit card so my credit rating is going to be a bit crap and I will be paying more interest than I would on a loan taken three years ago.

Anyone been through this experience and have any advice ?

ps My home insurance people (Aviva) were brilliant. They paid out within ten days (car was stolen as part of a burglary). Praise where it is due :T

InsideInsurance

Need to read your policy wording, it normally contains something like:

DirectLine wrote:

l. Hire-purchase, leasing and other agreements
If your car is currently on a hire purchase or financing agreement (except
leasing) we will settle the claim by paying the legal owner. We will only pay
you any remaining balance if ownership of your car is to be transferred to
you at the end of the hire purchase or financing agreement.
If your car is on a leasing agreement, we will settle the claim by paying the
legal owner.

Unless you can do a deal with the finance company you dont have a leg to stand on if your policy includes something similar

Jakg

Is it a secured loan? If so, the BANKS car was written off, and so are getting re-imbursed

chanz4

They are correct, call the finance company and ask if they will re-finance you

dacouch

Did you take out any form of Gap Insurance