Distraught "Total Loss" Vehicle

HokageJiraiya

Dear MSE Forums;

I have had a distraught 24 hours.

My partner (registered keeper) and (owner) of a vehicle which is currently on HP Finance has had, unfortunately, a vehicle accident where her insurance has named her as "Fault" claim.

Luckily we have had just applied new "Comprehensive" insurance cover with an excess of £235.

The insurance company have now stated that due to the description of the damage, it may not be economical to repair and thus they will have to look to "right off" or "total loss" is the correct term the vehicle.

Having taken the deductable excess, the rest of the 11 months of insurance and the amount left on the variable market value is approximately £2500 left to be paid to the HP finance company.

I didn't know what GAP insurance was (until this morning) and it wasn't explained when the 'persistant' vehicle sales man sold it at the dealers.

Completely distraught at the moment. No vehicle, having paid £1000 for insurance for 5 days, and still will need to pay £2500 for HP.

Is there any advice that I can get?

Can I contest on a "comprehensive" policy insurance and state that I am adamant that I want teh vehicle repaired instead of written off.

Looking for advice please.

Thank you

HJ

** Edit **

I have uploaded 2x pictures of the damage. It seems that Money Saving Expert won't let me upload links.

Update. I have called the company that they have referred to; in order for them to pick up the vehicle and I found out that its a "Salvage" company. Not a repair company. They deal in selling salvaged vehicles.

A quick search on Trust Pilot and apparently they are shoddy as they come.

I have called (where they have stated that their complaint department is now closed) in order for them not to pick the vehicle up tomorrow.

I have had someone come and inspect including the AA recovery and they both said that the vehicle can be repaired.

Aylesbury_Duck

HokageJiraiya wrote: »

Dear MSE Forums;

I have had a distraught 24 hours.

My partner (registered keeper) and (owner) of a vehicle which is currently on HP Finance has had, unfortunately, a vehicle accident where her insurance has named her as "Fault" claim.

Luckily we have had just applied new "Comprehensive" insurance cover with an excess of £235.

The insurance company have now stated that due to the description of the damage, it may not be economical to repair and thus they will have to look to "right off" or "total loss" is the correct term the vehicle.

Having taken the deductable excess, the rest of the 11 months of insurance and the amount left on the variable market value is approximately £2500 left to be paid to the HP finance company.

I didn't know what GAP insurance was (until this morning) and it wasn't explained when the 'persistant' vehicle sales man sold it at the dealers.

Completely distraught at the moment. No vehicle, having paid £1000 for insurance for 5 days, and still will need to pay £2500 for HP.

Is there any advice that I can get?

Can I contest on a "comprehensive" policy insurance and state that I am adamant that I want teh vehicle repaired instead of written off.

Looking for advice please.

Thank you

HJ

Before taking their word for it, wait until the car is actually seen by someone to check it's actually a write-off. Though if it's completely smashed up then you can safely assume it will be.

No, you can't insist the insurer repairs it. You agreed to terms and conditions when you took out the policy, which will have included something about damage that's uneconomical to repair.

I'm afraid there is not much more advice to give. Accidents can be incredibly expensive, especially when you are the party at fault. I'm afraid the best advice I can give is that when you get a new car and new insurance, make sure you understand exactly what liability you are taking on, and that you can afford the worst-case scenario.

missile

What is the car and how old?
Find out it's market value.

m0bov

Challenge their offer with some evidence.

AdrianC

HokageJiraiya wrote: »

The insurance company have now stated that due to the description of the damage, it may not be economical to repair and thus they will have to look to "right off" or "total loss" is the correct term the vehicle.

"Write off" - they've decided not to repair, but to pay out the pre-collision value of the vehicle instead. They'll assign a category to it - N (Non-structural damage, but the cost of repair is just too high), S (Structural damage), B (the car must be destroyed, but parts can be reused) or A (the car must be destroyed entirely).

Having taken the deductable excess, the rest of the 11 months of insurance and the amount left on the variable market value is approximately £2500 left to be paid to the HP finance company.

That's basically the position you were in before the collision - the car was worth £X, but you owed £X+2500. All that's happened is that that position has been crystallised, because of the car being damaged beyond economical repair.

Is there any advice that I can get?

Make sure what they're paying really is the value of the car. It's far from unknown for the initial offer to be low.

Can I contest on a "comprehensive" policy insurance and state that I am adamant that I want teh vehicle repaired instead of written off.

No. But you might, depending on how bad it is - CatN and S are OK to return to the road, B or A are not - be able to buy the car from the insurer for a percentage of the write-off value and then repair it privately. You'll still owe the financier, but it may be the cheapest route back to the road. The insurer do not have to offer this option at all, and it won't necessarily be sensible.

onomatopoeia99

AdrianC wrote: »

B (the car must be destroyed, but parts can be reused) or A (the car must be destroyed entirely).

"Must" is an unequivocal word, suggesting this is a legal requirement, which given the category system is an agreement between insurers is on the surface confusing.

Which Road Traffic Act or other legislation states a car classified into either of these categories must be destroyed?

foxy-stoat

onomatopoeia99 wrote: »

"Must" is an unequivocal word, suggesting this is a legal requirement, which given the category system is an agreement between insurers is on the surface confusing.

Which Road Traffic Act or other legislation states a car classified into either of these categories must be destroyed?

Doesnt really help the OP though.

OP, your partner is going to have to take the hit, but if its a borderline write off you may be able to argue for it to be repaired. Post up a photo.

debtdebt

Well the cost of the excess and total cost of the policy being netted off the total loss value is normal. That is nobody's fault.

You chose the level if excess. If you can't afford to pay the excess, don't choose a high one.

You need to provide more information for people to advise.

Make, model, year and mileage of vehicle. Price paid, price financed. When it was bought and when it was written off.

AdrianC

onomatopoeia99 wrote: »

"Must" is an unequivocal word, suggesting this is a legal requirement, which given the category system is an agreement between insurers is on the surface confusing.

Which Road Traffic Act or other legislation states a car classified into either of these categories must be destroyed?

It doesn't.

But DVLA won't issue another V5C on that car, ever.

oscarward

If you buy the wreck it may be possible to put it back on the road cheaper than the cost to the insurance co.

When a previous car of mine was written off it was because of cost of parts, e.g. £1000 for each headlight shell new from Peugeot. The 3rd party insurers took the wreck and put it back on the road using second hand parts. I met the guy who bought it off them and he showed me.

debtdebt

oscarward wrote: »

If you buy the wreck it may be possible to put it back on the road cheaper than the cost to the insurance co.

When a previous car of mine was written off it was because of cost of parts, e.g. £1000 for each headlight shell new from Peugeot. The 3rd party insurers took the wreck and put it back on the road using second hand parts. I met the guy who bought it off them and he showed me.

That doesn't really help the OP. The car will still be written off and they will still be in negative equity with the loan company.