Brand new car write offs

soolin

photome wrote: »

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

I agree, the terminology suggests insurance company have discovered something they don't like about the whole situation.

OP you need to clarify your statement, is the insurance company returning your premium and saying you were not insured? If so you really need to be pro active here and find out what is going on, get proper advice if necessary as if you were not insured then you will have to pay the finance company back regardless.

You will also need to check whether your insurance was 'cancelled' as that presents a whole new problem for the future.

If the insurance company aren't talking to you then keep on at them, they have to provide you with information, if it's a case of you just not understanding what they are saying then give someone else permission to speak to them while you are there listening.

facade

soolin wrote: »

I agree, the terminology suggests insurance company have discovered something they don't like about the whole situation.

OP you need to clarify your statement, is the insurance company returning your premium and saying you were not insured?

Can it be that you have insured your daughters car, with her as a named driver, rather than the main driver, and let this slip in your dealings with the insurer?

Briman wrote: »

I brought my daughter a brand new car on Saturday and she crashed it on Wednesday.

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.

AdrianC

Billy_Bullocks wrote: »

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

IF it's in the Ts & Cs of your policy. Since most people buy insurance solely on the premium, the insurers have been reducing the benefits of policies, in order to reduce premiums.

Gap insurance has arisen to fill the gap between the value of a near-new used car (which is what the OP's daughter was driving at the time it was written off) and a brand spankin' new unregistered one.

photome wrote: »

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

My suspicion is that the dealer provided a limited period of free cover, and the insurer are saying that since that policy was there first, that's the one the claim is against.

soolin

facade wrote: »

Can it be that you have insured your daughters car, with her as a named driver, rather than the main driver, and let this slip in your dealings with the insurer?

I was rather afraid of that, OP would have to have said something though when speaking to the insurance company to have alerted them and it seems odd that the company didn't then explain that was fraud.
OP suggests they have no idea at all why premium is being returned, surely there has to be a written explanation somewhere even if OP misunderstood what was being said on the phone.

Obviously if the policy was cancelled due to fraud then OP faces a difficult future. Also, whilst people have been reassuring about the value of the car 'nearly' matching the new value, is that entirely true? It depends on the car but a brand new car chosen to your own specs via a dealer with all the bonus bits and bobs is not going to be anywhere near the value of a second hand car. I'm sure most of us would expect a real discount if buying a used, admittedly low mileage, car when we would still have the option of going into a dealership and buying the same thing brand new.

soolin

AdrianC wrote: »

IF it's in the Ts & Cs of your policy. Since most people buy insurance solely on the premium, the insurers have been reducing the benefits of policies, in order to reduce premiums.

Gap insurance has arisen to fill the gap between the value of a near-new used car (which is what the OP's daughter was driving at the time it was written off) and a brand spankin' new unregistered one.



My suspicion is that the dealer provided a limited period of free cover, and the insurer are saying that since that policy was there first, that's the one the claim is against.

Your last paragraph might explain it all, it certainly makes sense. We've certainly always had a very short period of insurance provided when we've bought a brand new car.

Your suggestion fits the bill better than the other suggestions, mine included. OP would therefore need to claim on the policy provided by the dealership and make up any shortfall in the value of the car v the outstanding finance.

gardner1

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

Was this your daughter's first car after passing her test........If yes you only have yourself to blame
Should have got her a cheap runaround as most new drivers have a prang soon after passing test

davidwood123

gardner1 wrote: »

Was this your daughter's first car after passing her test........If yes you only have yourself to blame
Should have got her a cheap runaround as most new drive have a prang soon after passing test

Very true.

It's amazing how many ''kids'' I know who have been bought new cars (and pretty much everything else they wanted) turn out to be horrible adults.

If you really want to help her out OP, get her to buy a used car with her own money and insure it herself.

She'll hate it but in the long run it will teach her so much about the real world.

parking_question_chap

Suggest if you send them an email giving a deadline for a full response, and if it is not forthcoming you will escalate the matter to the Financial Ombudsman.

I had a dispute with a small financial company and they were very evasive and offhand. As soon as I mentioned the Ombudsman the director phoned me personally and we met to resolve the matter.

System

Fronting is my bet. Dad buys new car for daughter, sees how eye watering the insurance will be in her name so insures it in his putting her down as a named driver to save a grand. Insurance company quite rightly smell a rat and wash their hands of it making that grand saved on the insurance policy a very expensive grand.

Briman

No this was not her first car, she has had a black box insurance for a year in an old run a around with no problems, and that is not the point, this is about a new car and the insurance regardless of how long the driver has been driving.

Thanks for the comments around 7 day cover. We have seven day cover in my name as I brought the car with her as a named driver. We then set up her own insurance with her previous insurance company and explained that we had seven day insurance if which they said that was ok as this was her insurance as named driver.

I maybe over reacting to the initial comment made by the insurance company to my daughter when spoke to them "if it's a write off then we might return your premium (which we paid in full) and you can sort this out with the creditors" my daughter received a call yesterday saying it has been written off but they are getting a second opinion.

What I wanted to know is what is the normal process when a new car is written off, is what they suggested familiar? Indeed I will be chasing up the insurance company for further explanation.

Thanks