Possible write off early in PCP and no GAP

peterz

Hi all, I have purchased new Triumph Scrambler 1200 XE my dream bike on a PCP agreement 3 weeks ago. On Wed young lady pulled out on me from a side road and even though I have tried my best to stop we ended up in a collision. I was on the main road, she was meant to give right of way, but still awaiting what her insurance will try.
The bike is being collected on Monday for inspection but they are warning me it may be a total loss.
Only now reading around have I realised that I have not purchased GAP insurance as I was not offered one from the dealer or from the finance company. Stupidly, I do have it on my car so should have known better.
The bike OTR with accessories was 13200£ and the final figure with Black Horse finance is 15924£ at the end of a 3 year contract.
If the vehicle is a total loss and the insurance pays out what they think is current value of the bike with accessories, am I basically fully responsible for all the shortfall between the insurance value and the settlement figure from the finance company? I have paid 1500£ deposit. Any help and advice much appreciated. Many thanks.

Quentin

Yes, you are responsible for any shortfall between the settlement you agree and what is owed to the finance company

peterz

Ok, many thanks, as I expected. This presumably is the difference between the paid value and a early settlement figure from Black Horse, which I hope won't be the full sum they have expected on the end of the 3 year agreement? Basically I need to hope it is not a write off and they will repair it as that would be fully covered by the third party insurance company?

Quentin

Have you claimed against the third party insurer?

If so then yes, all repairs will be paid without deduction.

(Who arranged for the collection? If your own insurer then expect to have your excess deducted from either a write off settlement or repair)

You would then need to pursue the third party insurer to reimburse you for your excess along with your other uninsured losses

neilmcl

Does your insurance offer new for old cover in the first year of ownership of a new bike?

marlot

neilmcl wrote: »

Does your insurance offer new for old cover in the first year of ownership of a new bike?

This is very much worth checking.

peterz

Quentin wrote: »

Have you claimed against the third party insurer?

If so then yes, all repairs will be paid without deduction.

(Who arranged for the collection? If your own insurer then expect to have your excess deducted from either a write off settlement or repair)

You would then need to pursue the third party insurer to reimburse you for your excess along with your other uninsured losses

My insurance company is currently treating this as third party fault but it was them who organised the collection (rather worryingly by a salvage company that is suppose to asses the bike) They did say my excess will be first deducted from the settlement figure as well as any outstanding finance and after they have the response from third party insurer they should refund my excess.

peterz

marlot wrote: »

This is very much worth checking.

Need to check that, I'm insured with Hastings Direct but do not remember seeing this in any of the contract documentation which means it is unlikely as it would have been highlighted as a selling point possibly?

peterz

Quentin wrote: »

Have you claimed against the third party insurer?

If so then yes, all repairs will be paid without deduction.

(Who arranged for the collection? If your own insurer then expect to have your excess deducted from either a write off settlement or repair)

You would then need to pursue the third party insurer to reimburse you for your excess along with your other uninsured losess

I take it this needs to be done by a specialist solicitors or is this something my insurance can do?

Quentin

peterz wrote: »

My insurance company is currently treating this as third party fault but it was them who organised the collection (rather worryingly by a salvage company that is suppose to asses the bike) They did say my excess will be first deducted from the settlement figure as well as any outstanding finance and after they have the response from third party insurer they should refund my excess.

The "finance" they will deduct from a write off settlement will be any outstanding premium you may owe if you pay on the drip for your insurance

And if written off they will be paying the finance company the balance left

AdrianC

Quentin wrote: »

You would then need to pursue the third party insurer to reimburse you for your excess along with your other uninsured losses

Those losses do not include the negative equity on the finance - their liability for the bike itself is just the pre-collision value.


They're things directly related to the collision - loss of earnings through being unable to work, your clothing/helmet, etc.