Loan while waiting for car insurance claim

chrispbug

I've an insurance claim going on at the moment for a car accident. I'm waiting to hear if the car is a write off but before I get a settlement figure is it worth getting a personal loan to buy a new car and paying any settlement to the new loan ?
I need a car for my work but unfortunately a courtesy car is not covered by my insurance.

jonesMUFCforever

If you can afford to why not?

SammenForLivet2

This said, what will happen if the car's not a write off?
I would contact the Insurance company, and ask how long it's going to take, then get quotes for a hire-car.
Then compare the opportunity cost.

But, really, if you can afford it - it's upto you.

ReadingTim

I'd add that if the affordability of the loan is dependent on receiving a set amount from the insurance company, it's probably not affordable as you're not guaranteed to get that amount. The last thing you want is an expensive or unaffordable loan because you only got half what you were expecting from the insurance company - they're not exactly known for their generosity are they?!?

If you really need a car for work I'd look at a hire car, at least until you know the settlement amount. And perhaps uppng your insurance cover to include a courtesy car should this happen again!

spacey2012

Is there any dispute over liability ?
If the other side are taking liability, get a hire car and send the other side the bill each week to pass to the insurer.

Apples2

I've had cover for courtesy cars before, cost me about 30 quid to add it to my policy.
Cheaper than this avenue which carries a fair bit of risk from what we can tell.

chrispbug

I've actually got a loan now for a new car. I've got to have a car as where I work has no public transport. Once I have a settlement figure I'll use the money to pay off the existing finance on the smashed up car, and the balance of the settlement figure may be used to pay a bit off the new loan.
On the other hand the balance can be used to pay off any credit card balances - especially ones with a hign apr rate !