Insurance cash settlement - what are my obligations?

Truffles01

Hello all,

Short story: someone reversed into my parked car, I wasn't in it but they left details. About a week later their insurance company wrote to offer an evaluation, repairs, courtesy car and so on.

They inspected the car and declared it uneconomical to repair. The damage is a dent to the rear wheel arch, requiring significant work if it's done by an approved garage to their required standard, but the car is fine to drive. I can almost certainly have a passable repair done within the cash settlement budget.

They offered a total loss value, (900 pounds) or a cash settlement (700 pounds), so I said I'd take the cash settlement.

I was ready to cash my cheque and be on my way, but discussion with workmates led to some questions:

-Do I have to declare the car written off? Do the insurers do that?
-If I have to declare it written off, do I then have to do anything to show that it's roadworthy? I've been merrily driving it to work and back for the past couple of weeks!
-The letter from the insurers simply states that the money is 'without prejudice'. Should this concern me?
-If; considering the issues with write-off; I've made the wrong choice; is it a problem that I have taken (but not cashed) the cheque?

I would prefer to hang on to the car as it's mileage is fairly low, there's no (known) major problems on the horizon and other than the new dent it's in good condition.

Thanks!

paddedjohn

As long as the car is roadworthy and safe (no sharp edges sticking out from the dent) you can drive it as much as you want without getting it repaired.

forgotmyname

You have a free car. Almost.

As long as your insurance know about the incident then your OK.

How have the insurers classified the write off? C or D?

Although with an older car you may not care. Take photo's of the damage now.
When you sell it say the insurance wrote it off on date.. because of that scratch.

It will make it easier to sell. Although most buyers will buy on condition and not what a bit of paper says.

The only issue is if your insurer dont cover CAT C or D cars. Take your business elsewhere if thats the case.