Brand new car write offs

Briman

Hello everyone

I brought my daughter a brand new car on Saturday and she crashed it on Wednesday. The car is straight off the production line and only had 40 miles in the clock. She had a small accident pulling away from a roundabout, it was her fault. Thankfully she is ok.

The car is being written off!!? It's drivable but that is the initial decision.

The insurance company is not being open but have suggested they will return my premium and that it would be down to me to speak with the finance company. I have no idea what is the right thing to do or what is likely to happen. Could anyone give me an indication of what I should be prepared for or should be doing?

Thanks xx

Billy_Bullocks

Briman wrote: »

Hello everyone

I brought my daughter a brand new car on Saturday and she crashed it on Wednesday. The car is straight off the production line and only had 40 miles in the clock. She had a small accident pulling away from a roundabout, it was her fault. Thankfully she is ok.

The car is being written off!!? It's drivable but that is the initial decision.

The insurance company is not being open but have suggested they will return my premium and that it would be down to me to speak with the finance company. I have no idea what is the right thing to do or what is likely to happen. Could anyone give me an indication of what I should be prepared for or should be doing?

Thanks xx

Written off and less than 12 months old used to get you a new car.

forgotmyname

Returning the premium? Do they suspect fraud?

Or do you mean they are paying out the claim, but it less than what you owe on the car because of the finance? If you didnt have GAP insurance you will need to settle the balance.

Briman

That's what I think they were suggesting, they implied that the loss is the creditors loss but nobody is commiting to a clear answer.

Briman

No fraud, by the premium they mean our insurance payment to them. They are implying that the car is too new for it to be their problem, they suggested that the loss is the finance company's loss. We have not even got to the point to discuss gap insurance yet.

jimjames

Briman wrote: »

We have not even got to the point to discuss gap insurance yet.

Surely the time to discuss that is before you drive the car away?

Billy_Bullocks

Briman wrote: »

No fraud, by the premium they mean our insurance payment to them. They are implying that the car is too new for it to be their problem, they suggested that the loss is the finance company's loss. We have not even got to the point to discuss gap insurance yet.

The finance company will want paying so either the insurance stump up or whoever signed the finance agreement does.

forgotmyname

Why are they returning the premium? They must have said something?

They wont write the car off and refund your premium. If they refund your premium then the car is uninsured and you need to pay for it in full.

Kids on holiday?

debtdebt

Are they telling you that they are paying out for the pre accident value of the vehicle? If so, it should be close to RRP given the low miles and short duration that your daughter had the car. If they are paying out, they'll pay whatever figure straight to the finance company. If there is anything outstanding, that will have to be paid by either yourself or your daughter or through the GAP insurance if you had any.

Not sure why they're refunding the premium.

tberry6686

Who's name was the car insured under ?

Returning your premium suggests that they are voiding the insurance for some reason.

photome

How can an insurance company return a premium, unless there is som underlying issue regarding th acceptance of the policy