PCP Car - non-fault accident

nisickn0t3

Im sorry if this is not the correct area for this post. I had a search and could only find information about cars that were wrote off.

A week ago i was stopped in the road (not a junction) waiting to turn right into a housing development, as i was waiting for traffic to clear i was rear ended, what looked like body work damage on the passenger side read bumper now looks like suspension damage as shes come through and hit the wheel. Its being repaired at the moment and he have a courtesy car and from a layman's point of view i didn't think there was that much damage and no one has told me otherwise.

Its all gone through the insurance and the opposite side have all the liability, and my insurance company have taken it to be repaired.

After talking to a friend, he suggested i look into whether the car may be classed as a category d write off. This in turn he said may affect my insurance on the car and its resale value. The car is on PCP and due to be handed back next summer.

My question is these;
- As the car is PCP and due to be handed back in a year, when it is sold and if it achieves a low price will i have to make up the short fall?
- Will it actually affect my insurance?
- Do i have to declare this accident to DVLA?
- Do i have to declare this accident to the finance company?

Any help would be appreciated.

Thanks in advance, Ian.

molerat

A write off is a write off whatever category. If they choose this route the car will be taken from you and the finance co paid the pre accident value. Any shortfall from the settlement cost will have to be paid by you.

You are not responsible for any shortfall at sale, that is the risk the financiers take with PCP, but you are responsible for any reduction in value caused by failing to take reasonable care of the vehicle. As long as the repairs are done to a very high standard with original manufacturer parts there should be no problems. Usually manufacturer approved repairers are the best to use.

Your premiums are likely to rise. Although not at fault statistically you are more likely to be involved in another so your risk is now higher.

No, DVLA will not be interested unless it is written off.

No, usually the finance co do not care until the final inspection when any damage will have to be accounted for. If repaired properly there should be no damage visible. You do need to check your finance agreement though for any small print.

nisickn0t3

Thank you for your reply molerat.

The term write off confuses me a little, and a write off to me is the car is damaged beyond repair, i didnt know about the different categories. If the insurance did pay out and the car taken away we have gap insurance to make up the difference so im not to to worried about that.

As far as i know from the last contact with the handler of my claim was that parts were being ordered to repair the vehicle. Im just miffed at how my insurance premiums would go up