GAP insurer refuses to pay out

missytake

My car was written off after 'drowning' in an underground carpark in London. When contacted, my insurers advised me straight away, that because of the depth of the water, my car would be written off. They have been excellent. The vehicle was valued at £16400 and that is what they paid out to settle the claim. Luckily I paid for GAP insurance when I purchased the vehicle from new. The Gap insurance had discussed with me the payment that I would receive - £8100. I sent them a photo of the cheque from my insurers as requested. 3 days later, I phoned them to ask if their cheque was on the way and that's when they informed me that they are NOT going to pay out. They say that the car was repairable at a cost of £11600. I have spoken to my insurers and they advised me that THEY make the decision about whether to repair or not. They say that because the cost of the repair would have been 72% of the value of the vehicle, they would not repair. They say the industry standard for repairing is if the cost is 60% or less. They also said they had to consider my safety when driving a vehicle that had been repaired after being under water and had therefore written it off. Also that when the repairs were started, the costs may have gone up if they found other things damaged. GAP insurer is adamant that they wont pay. Their customer relations department are going to phone me. What do I do? What questions should I be asking? any help would be gratefully received. Thanks in advance,

molerat

Are you going to pay ?
and if not
What is your complaints procedure ?

The only questions that need asking.

rs65

molerat wrote: »

Are you going to pay ?
and if not
What is your complaints procedure ?

The only questions that need asking.

I would also ask which term of the policy are they relying on to not pay.

OP, is the policy wording available on line?

missytake

Yes. Its click4gap. I have had a look and I cant see how they can refuse to pay.

rs65

missytake wrote: »

Yes. Its click4gap. I have had a look and I cant see how they can refuse to pay.

The exclusion I see is:-
3.2.16 Classified as category X total loss where it is economical repair the vehicle to a safe and roadworthy condition

Also:-
4.2 If you accept an offer of settlement in respect of a total loss from the comprehensive motor insurance insurer without our express agreement we may at our option refuse to deal with your claim, grant no payment under this policy, or calculate your claim using the loss value

rs65

missytake wrote: »

They also said they had to consider my safety when driving a vehicle that had been repaired after being under water and had therefore written it off.

I don't see why it couldn't have been repaired to a safe standard. My experience of such damage is that waterlogged cars can become troublesome later - damage to electrics for example may manifest itself later so it makes sense to write it off and avoid future problems.

missytake

Hi RS65... Thanks for your thoughts.
It is a cat d write off.
Also I did not accept the offer from my insurance company without consulting the GAP insurers. It was only when they said the offer was fair and that I could accept it (but they also said try and get a bit more - presumably to reduce the amount they had to pay) that I accepted.

molerat

In which case I refer you my post #2. Formal complaint and then FOS if they don't pay up.

missytake

Still waiting for GAP insurers to ring me back. Meanwhile I have spoken to the Ombudsman. They were very helpful. Apparently the GAP insurers should be accepting the insurance companys decision to write my car off. They said that the insurance company have lots of experience with this type of claim so know how to deal with it. GAP insurers should pay up. FOS will handle my case if I want them to, free of charge. I am waiting for GAP insurers to ring back 'soon'. FOS says they should respond in 'a day of so'. Its 4 working days tomorrow so will make another phone call to their claims dept tomorrow morning as they wont give me their customer service telephone number. (like its a secret).When I phone the GAP insurers today they said they can understand that I am concerned about how quickly I can buy another car. Told them that wasnt my concern. My concern is that they owe me £8000.

rs65

missytake wrote: »

Meanwhile I have spoken to the Ombudsman. They were very helpful. Apparently the GAP insurers should be accepting the insurance companys decision to write my car off. They said that the insurance company have lots of experience with this type of claim so know how to deal with it. GAP insurers should pay up. FOS will handle my case if I want them to, free of charge.

I wouldn't rely on what the FOS helpline tell you - they really need to see everything to form a proper view.

Hopefully they will call you soon and either pay up or explain why they aren't.

A formal complaint can actually slow the process as they are allowed 8 weeks to respond.

missytake

I have lodged a formal complain. I know it can take up to 8 weeks but I am prepared to wait to get the right decision. If they don't come up trumps then I will take it further. I have legal cover with my home insurance, so expect to use them to take it further.

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