Insurance & finance nigtmare!

HayleyW

My husband and I own a small electrical business and we have a vehicle which was in an accident back in December 2015 and was deemed a 'total loss' - Cat D by the insurance company. (Cat D is the lowest category write off - uneconomical repair)
We were offered an amount for the van and accepted however after paperwork and DVLA submissions were put forward, we had an employee who had undisclosed penalty points. Now we are being asked to pay a premium for the difference in insurance costs so we can get the van back as they are not paying out.


However, the finance company are now saying that as the insurance company deemed it as a 'total loss' we have to pay off all the finance? I tried explaining this was a Cat D - only uneconomical repair, and we are now getting it fixed by a local mechanic to be roadworthy, but they are still adamant it has to be paid off? Has anyone been in this situation or know how I can appeal this?


Many thanks in advance!

huckster

Have the Insurance company notified DVLA it is a write off ? I don't think they would do this for a cat D.

Under the finance agreement what category of write off would lead to the finance having to be paid off ? I think any such clause is designed for situations where the category means the van should not be repaired and put back on the road.

Think the finance company are mistaken. Your responsibility is to get the van repaired and to continue making the normal finance repayments. That is what you should do and confirm in writing to the finance company.