Problems with First Central insurance

AdRock

I'm after some advice about an existing insurance claim for my flood damaged car.

3 weeks ago , in the evening my car went into flood water and the car died. i rang the insurance company next morning (Sunday) and they got the car towed away. I was told when I first rang to report the incident that I would head something by Friday.

Friday came and I heard nothing. I telephoned them again and they said they needed some extra information. If they need extra information why did they not ring me or email for it? I gave them the extra information and I asked when it would be completed. They told me I should hear something by the next Friday.

I rang again the following Thursday and was this time told the engineer was waiting for a reply from the salvage yard to complete his report and I should have it by email by later that day or early Friday morning.

Monday came and still no report or email so rang back yet again and this time i was told he was waiting for more images. By this time I had enough and put in a formal complaint as this was 2 weeks and I've already taken a weeks unpaid holiday from work and now I've had to hire a car to get me to work.

Rang yet again on the Wednesday was was told the engineer has the images and he was writing his report which I would get a copy of by email by Thursday and that once his report was submitted, it would take 2 working days for an offer to be made.

Today (Friday, 3 working weeks later) I telephoned AGAIN because I still haven't had the report. I was told the engineer was still working on his report and I would get in contact later today. I told them I'm at work and don't get in until 6pm and they said he would send it by email. I'm not holding my breathe.

What they did tell me that got me confused was when the make an offer, they subtract the excess which is fair enough but they also said they deduct any outstanding monthly premiums from the settlement. I pay my premiums monthly and have a credit agreement with Close Brothers Finance so I pay them each month. Seeing as I have 10 months premiums left, as I understand, the insurance wants to take a further £160 off my settlement. How can they do that? As far as i'm concerned, Close Brothers gave them the £200 annual premium and I pay Close Brothers back. Surely if they're trying to deduct 10 months premiums from my settlement, that means they are giving those premiums back to Close Brothers and I'll still be insured up until November and I won't have to pay any more premiums. Can they really deduct money that's not owed to them from my settlement or are they trying to pull a fast one?

Also I have been documenting every phone call and what was said I was want to take this to the Financial Ombudsman. Do I really have to wait the 8 weeks before I start the ball rolling. It's been nearly a week since I put the official complaint in. I'm going to write a letter showing all their incompetences to enhance my existing complaint to insurance

Unclean_Hands

It's not an unreasonably long time from claim to settlement to be honest, but you would normally expect a courtesy car to be supplied until the decision to write off or repair the car has been made. This would have avoided you needing to take the week off work.

With regards to your outstanding balance being deducted from your settlement this is fairly common practice and would most likely be detailed in your Terms Of Business Agreement. Yes - it would be used to pay off your balance with Close Finance and you would no longer have to pay your monthly premiums. Yes - your insurance should remain in place for the remainder of the year and you should be able to change your new vehicle over onto the policy - providing the new vehicle is acceptable to your insurer. Note - this may incur an admin charge (check your TOBA) and/or additional premium.

Not sure whether I'd bother with the FOS if I were you as it's unlikely to achieve a great deal and will certainly take up your time writing letters and on the phone.

Quentin

AdRock wrote: »

...... want to take this to the Financial Ombudsman. Do I really have to wait the 8 weeks before I start the ball rolling....

8 weeks is the maximum time your insurer is allowed to answer your complaint.


So when you get their answer and you are unhappy with it, then you can go straight to the FOS.


(Should you not get a reply after 8 weeks you don't need to wait any longer and can go to the FOS then)


(It is the norm to have your remaining premium deducted from a total loss settlement, so you can't expect any help from the FOS over them doing this)

Quentin

Unclean_Hands wrote: »

...you would normally expect a courtesy car to be supplied until the decision to write off or repair the car has been made.....

Not "normally" at all.


If you are covered for a "courtesy car" then this is normally provided by the repairer whilst the car is in for repair.


If you want a hire car should your car be off the road awaiting repair/stolen/a write off then its down to you to sort that yourself. (Some insurers offer a hire car in these circs, but normally as an extra to the standard cover)

Unclean_Hands

Fair comment re hire car Quentin. Probably personal habit of having always sought this in a car insurer since leaving co-op some years ago (and who used to offer it as standard I'm sure.) Certainly I have it on the current Hastings (premier? Or some such.)

AdRock

I have an update on this as this has not been sorted and I am getting very frustrated as it's causing additional expense.

It's been 6 weeks and they still haven't completed my claim. I had to put in a formal complaint about 4 weeks ago as I wasn't getting contacted when promised and I was tired of excuse after excuse why my car hadn't been inspected.

I finally got a letter after 4 weeks to say my car was total loss which I knew from the beginning and it said the insurance were instructed to write a cheque. After a week I still hadn't received payment so I telephoned them again and was this time told the car needed to be inspected again.

On the Monday I got a letter from insurance asking to send off my VC5, spare keys and sign a form to agree that I had insurance with them (why i don't know) or send off proof of my insurance. i sent it all off recorded delivery and checked with Royal Mail and it was signed for on the 10th March. I recently received a cheque from the DVLA for the remaining vehicle tax and it was dated 10th March. I still haven't received a settlement so i emailed both the complaints department and the claims department. Complaints department never responded and I got email this morning saying they are still dealing with my claim and don't know when a completion date will be.

I've gone through 150mins in a week being on hold to this company and have no call credit left until the end of the month so I now have to take an afternoon off work to ring them.

What are my legal rights as I haven't been the registered keeper of my car for 9 days and it seems they are refusing to pay by delaying the claim. They have basically taken my car and given me no money for it.

I've recently learnt of the Consumer Rights Act 2015 and under section 52 ''Services must be completed in a reasonable amount of time', it appears they have failed miserably.

I am currently having to hire a car to get me to work and this is costing me £10 a day so I'm already £350 out of pocket and I don't know when they are going to complete.

This is also causing extreme stress at home. I either pay this money to hire a car or a take unpaid holiday and don't pay the mortgage so I have no option.

Quentin

You need to keep on at them every day, whilst separately awaiting the reply to your complaint.


(As mentioned earlier, if they don't respond to the complaint by 8 weeks you can escalate to the FOS. It also might be worth ringing the FOS help line over this now - 0800 023 4 567)