Car Written Off - No insurance pay out

gezza07

Hi there,

This is my first ever post on the forum, great to be here. I have a few questions regarding a situation i found myself in a couple of years ago. I'll try to keep this as brief as possible.

I shared a car with my father. He was the main policy holder and I was a named driver on the policy. We had bought the car with a view to me owning the car in the longer term once i was up and running with better finances. For this reason, the finance was coming from my account.

I had an accident in the car in 2010 whereby it was written off. I collided with a telegraph pole on a back road after swerving to avoid another car who was traveling at speed. The other driver did not stop.

The insurance company did not pay out for this accident, claiming that i was fraudulently claiming as they said this car was being used predominately by me - they had no proof of this but pointed the finger to the finance coming from my account.

I am now still paying for a car that doesn't exist and will be till 2016.

The insurance company not only didn't pay out, they also cancelled my policy meaning I must tell every insurance company in the future about this.

Questions which I have are...

1. Do I have any grounds to challenge the insurance company?
2. I haven't as yet informed the finance company as I have just being paying as normal, do i need to do this?
3. Is there any way of recouping any cost for the vehicle or should I just accept the decision of the insurance company?



Many thanks.
Gezza07

scotsbob

1. I don't think we have enough information to answer this. You have only told us of one instance when you were driving. Who was driving the car most frequently you or your father? Did your father have another car which he was using?
2. Your only transaction with the finance company was to borrow money. Yes you have to repay what you borrowed.
3. Either you have grounds to prove the insurance company were mistaken or you accept their decision.

Big_Tree

Sounds like the insurance would have been too expensive so you got your dad to take out the policy with you as a second driver to bring the price down to a more affordable level....That's about right, yes?

Tilt

If your Dad is the main policy holder and you are a named driver on the policy, I don't see what the problem is unless you have "fronted" the policy.

'Fronting' means that someone else has taken a policy out (who are not the main driver) to enable another driver to drive a car and avoid significant insurance premium costs.

The problem is that the insurance company like to 'qualify' who drives on the policy. So if an accident occurs and the driver hasn't been declared to the insurers, then this is when a policy can be cancelled.

dacouch

gezza07 wrote: »

Hi there,

This is my first ever post on the forum, great to be here. I have a few questions regarding a situation i found myself in a couple of years ago. I'll try to keep this as brief as possible.

I shared a car with my father. He was the main policy holder and I was a named driver on the policy. We had bought the car with a view to me owning the car in the longer term once i was up and running with better finances. For this reason, the finance was coming from my account.

I had an accident in the car in 2010 whereby it was written off. I collided with a telegraph pole on a back road after swerving to avoid another car who was traveling at speed. The other driver did not stop.

The insurance company did not pay out for this accident, claiming that i was fraudulently claiming as they said this car was being used predominately by me - they had no proof of this but pointed the finger to the finance coming from my account.

I am now still paying for a car that doesn't exist and will be till 2016.

The insurance company not only didn't pay out, they also cancelled my policy meaning I must tell every insurance company in the future about this.

Questions which I have are...

1. Do I have any grounds to challenge the insurance company?
2. I haven't as yet informed the finance company as I have just being paying as normal, do i need to do this?
3. Is there any way of recouping any cost for the vehicle or should I just accept the decision of the insurance company?



Many thanks.
Gezza07

As you father was the policyholder and the person who supplied the Insurers with the details and accepted they were true. It's your father who is lumbered with having to declare the void policy.

You would not normally need to declare the voidance.

What are the exact circumstances of the matter

1) What was the purpose of the journey at the time of the accident.

2) How many other vehicles does your father have and how many cars does your mother have.

3) Did you live with your parents?

4) Whose name was the log book in?

5) Out of whose account did the deposit for the finance come out of.

6) How long after you passed your test did you take out the policy?

Nodding_Donkey

Looks like a classic case of fronting to me OP and I can see why the insurance company have got the hump. I think what has shot your case down is you say you were waiting for your finances to improve but you were paying for the car so it looks very much as if the insurance was the only problem. Much better to have had the policy in your name and your father as a named driver, that would have reduced it considerably and been perfectly acceptable.

arcon5

As above, it wasn't your policy so you don't declare a cancelled policy - your father does. You should really advice him this sooner rather than later as it could see his current policy if he has one void in the event of a claim.

Really does sound like fronting in that the car was intended for you, he took out a policy with you as a named driver due to your finances.

Importantly though
Do you live separately from your father
Where is the car parked at night
Does he have any other cars
Who does what driving in it and how often

nobbysn*ts

To actually answer the question, yes there is further action you can take. Make a complaint to your insurance company, and ask for a final written response, unless you already have a final response. Then make a complaint to the Financial Ombudsman Service. You will need to provide details of usage of the car, such as your dad using it daily to go to work, etc.

giraffe69

Is it just me or is it a bit odd to wait two years before asking whether to pursue this?

harrys_dad

Four years, the accident happened in 2010! The finance goes until 2016! Seems a long time for a finance agreement.

Can you answer some of the questions in the thread please OP.

InsideInsurance

gezza07 wrote: »

I had an accident in the car in 2010 whereby it was written off. I collided with a telegraph pole on a back road after swerving to avoid another car who was traveling at speed. The other driver did not stop.

<snip>

Questions which I have are...

1. Do I have any grounds to challenge the insurance company?
2. I haven't as yet informed the finance company as I have just being paying as normal, do i need to do this?
3. Is there any way of recouping any cost for the vehicle or should I just accept the decision of the insurance company?

1) You can always challenge an insurance company's decision. Normally this is done by a complaint in the first instance and then if that is not successful you must either go to the FOS or to the courts. The problem is that the FOS have a 6 month limit on complaints and you say this was 4 years ago!!

2) What sort of finance was it? PCP? HP? A personal loan? If the finance was secured against the vehicle itself then almost certainly you have a contractual obligation to inform them that their security has gone, this may mean they want the full balance to be settled immediately. If its a personal loan not secured against the vehicle then its irrelevant to them

3) As per 1, your main issue is that you've left it 3-4 years


As others have said, the insurers believe you fronted the policy ie you falsely declared who the main driver of the policy was to obtain a cheaper premium. The vast majority of policies terms/ assumptions state the policyholder is the main driver unless explicitly declared otherwise.

Who was the main driver? If it wasnt you, what evidence do you have to substantiate this?