Car insurance Cash in Lieu settlement being rejected

Jello123

Hello MSE

I am with Quote Me Happy. My wife recently damaged our car. The light on my dashboard for steering light came on, but I did inform the insurer and garage that I had trouble with the light back in November but it went out on its own, so it may be due to this accident or pre existing. Reported the claim and had someone call me the next day to arrange car to be taken to their garage.

I said I wanted to take to a garage of my choice which they agreed to but wanted £250 extra in excess. I said fine.

I asked whether I can drive the car to the garage, but operator said it’s recommended to have it recovered BUT if I feel it’s safe to do so then I can continue to drive it. Which I did as the steering felt ok. I took it to two garages and got two quotes.

Anyway they agreed the repair with the cheaper of the garages. However called and I asked for cash settlement instead of a repair As it means I won’t need to stomp up £1k for excess right now (money’s tight more so than usual at the moment) and just do the main repairs for now to get me on the road, then do the remaining repairs at a later time, or sell the car with the remaining cosmetic damages for a reduced price.

They refused on the grounds that a cash in lieu is only applicable for a written off car. Which this wasn’t. After arguing and saying the policy booklet does not stipulate this, they came back and said cash in lieu was available but because my car is deemed unroadworthy (due to steering dashboard warning light), they are unable to do so.

Again I argued that the policy booklet does not say this. Plus if this is the case, why did the original person say it was ok to continue to drive the car to the garage should I feel it’s safe to do so? They should have said NO, full stop.

The policy booklet wording is as follows:

· “If your car is lost, stolen or damaged, we will…
1) repair your car unless you notify us that you want us to pay someone else to repair;
2) replace your car, or
3) pay you a cash amount equal to the loss or damage

Am I fighting a loosing battle here? Or do I have grounds to request cash still?

molerat

I would say the 3 options are of their choice.

Jello123

molerat wrote: »

I would say the 3 options are of their choice.

Thanks for the reply. I see it as my choice, but I’m of course bias here. Would be good to get some more opinions.

Also, if they are saying cash settlement not possible due to road worthiness. Would me getting a MOT done help the situation?

Quentin

Jello123 wrote: »

Thanks for the reply. I see it as my choice, but I’m of course bias here. Would be good to get some more opinions. .....

Whenever you are not happy with your insurance company the route to go down is a complaint in line with their complaints procedure

Then if you are not happy with the reply or they ignore you for 8 weeks you can escalate to the FOS for their adjudication at no cost to you

Jello123

Quentin wrote: »

Whenever you are not happy with your insurance company the route to go down is a complaint in line with their complaints procedure

Then if you are not happy with the reply or they ignore you for 8 weeks you can escalate to the FOS for their adjudication at no cost to you

Understood. I have actually put in a complaint already and waiting for a reply.

I would have happily wait out the 8 weeks timeframe, but the problem is that now that they said “you are theoretically uninsured because car is not roadworthy [due to light on dashboard]” it means I’m not allowed to drive the car anywhere.

What I may have to do is get the car MOTD in the first instance just so I am drive whilst the complaint goes through the motions.

paddyandstumpy

Can you copy and paste the full wording from the claims settlement section?
There usually is a phrase something along the line of "...at our option"

Jello123

Section 1. Loss of or damage to your car
If your car is lost, stolen or damaged, we will:
1. repair your car unless you notify us that you want us to pay
someone else to repair it; or
2. replace your car; or
3. pay you a cash amount equal to the loss or damage.
We may decide to use suitable parts or accessories not supplied by the original manufacturer.
The same cover also applies to:
1. accessories,
2. spare parts and components for your car while these are in or on your car or while in your private garage. The most we will pay for accessories is shown in your schedule unless fitted by the manufacturer.
The most we will pay will be the market value of your car at the time of the loss.
If we know that you are still paying for your car under a hire purchase or leasing agreement, we will pay any claim to the owner described in that agreement. Our liability under this section will then end for that claim.

Accident recovery
Within the territorial limits we can arrange for the protection and removal of your car. In the event of an accident please ring our Claims helpline and we will arrange for the following:
1. Someone to come out and help. If your car cannot be made roadworthy immediately it will be taken to our nearest approved repairer.
2. Your car can be taken to a repairer of your choice if this
is nearer, but this may lead to delays in arranging the repairs to your car. An additional excess will apply in addition to any other excesses under this policy if the repairer chosen is not one of our approved repairers. We do not provide
a courtesy car if the repairer chosen is not one of our approved repairers.
3. Transport for you and your passengers home or for the completion of your journey.
4. The onward transmission of any messages on your behalf.
5. Delivering your car back to your address in Great Britain, Northern Ireland, the Channel Islands and the Isle of Man after the repairs have been carried out.
In providing accident recovery assistance, we will use our reasonable care and skill when providing the service. We can, however, cancel services or refuse to provide them if the demands made are excessive, unreasonable or impractical.

Repair guarantee
We will continue to guarantee the repair quality carried out on your car by our approved repairer for a period of 3 years from the date of completion of the repairs, or for the remainder of the original manufacturer’s warranty for your car if it’s more than 3 years.
All parts fitted to your car by our approved repairer will be covered for the duration of the guarantee provided by the part manufacturer or supplier.

Exclusion to repair guarantee
We won’t pay for damage under the repair guarantee arising from deterioration and wear and tear or parts and component failures

Also sending a screen shot.


Thanks

Jello123

Hi

Please see above post with a copy and paste and screenshot. I can’t see anything along the lines of “at our option/discretion/choice”.

Quentin

No need to say that!


Important (for you) is that nowhere does it say at your option/discretion/choice!

Quentin

If that warning light is considered to make your car unroadworthy then that needs sorting as you cannot drive it anywhere (or if you do you will be uninsured!)

Jello123

Quentin wrote: »

If that warning light is considered to make your car unroadworthy then that needs sorting as you cannot drive it anywhere (or if you do you will be uninsured!)

Yup, this is why it’s a bit annoying as currently the car is parked.

When I initially spoke to the claim handler thy told me that they don’t recommend driving it but I am still allowed if I deem it to be safe. The steering felt ok, and I have previously seen this light come and go, and more importantly the light comes up with a message saying “you may continue to drive” on the dashboard.

However, fast forward, they are now saying the light means the car is unroadworthy, which means they won’t pay a cash settlement.

I will get the light sorted anyway and have the car re-MOTd even though it’s not due yet, only because I don’t want anything to happen (god forbid) and insurance then use it as a excuse to not payout in the future.