Car Insurance Claim Dispute

Dah123

In March I had  a no fault accident and claimed through the other parties insurance.  My car was on a personal contract hire agreement.  The insurer went for a total loss payout, made up of a settlement figure from themselves and a salvage value to be paid by a separate salvage company, after some discussion I agreed to accept the figure offered.  I obtained a settlement figure for the vehicle from the finance company which was less than the total figured agreed.  VWFS the finance company insisted any moneys needed to be paid to them. The salvage company paid out but I had to keep chasing the insurance company to settlement their amount .  When the eventually paid VWFS mid June they only paid the balance outstanding which was £1700 less that the agreed figure. On speaking to them to see when they would therefore be sending me the balance, I was told they wouldn't be as I wasn't the legal owner of the vehicle as VWFS were. Does anyone know if they are legally aloud to do this?.   Had they paid out on time before the salvage company had made their payment they would have had to pay the correct amount.  I am now out of pocket because I had continued to pay VWFS for 2 months after the accident and my contract was not due to finish till September, I can't get this back.  The hire car I had was returned in early May as I was being pressurised to do so. I have had no vehicle since then and I now have to pay a deposit on a new agreement for a new vehicle which is due to be delivered July.  

Ditzy_Mitzy

Essentially, nobody owes anybody £1,700 as there is no net change in the values.  The insurance company has paid VWFS the claim settlement less £1,700.  The car breaker has paid VWFS £1,700.  The only other scenario would be for the insurance company to pay the total claim settlement to VWFS and for the breaker to pay £1,700 to the insurance company.  The transactions balance, or cancel each other out.  Legally speaking, ownership of the car passes from VWFS to the insurance company at the point it is written off.  The insurance company doesn't owe VWFS the settlement figure plus the value of the wreck; instead, as new owner of the wreck, it can do whatever it wants with it.  
The PCP finance part of the equation is nothing to do with the insurance company.  The policy covers the car, there's no obligation for it to cover outstanding finance in excess of the car's value at the point the claim was made.  Unfortunately you'll just have to pay it, given that it sounds like you haven't got GAP insurance in place.  

Sandtree

Is it possible to get real numbers on this?

Who did the salvage company pay, you or VWFS?

Is your shortfall only the 2 additional months rental payments you paid to VWFS during the period or is it more than that?

Did the TPI provide a replacement vehicle whilst the claim was being handled and was it a near enough "like for like" replacement or just some micro car?