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Car insurance a scam!

SPlatten
SPlatten Posts: 119 Forumite
Eighth Anniversary 100 Posts Name Dropper Photogenic
edited 4 August 2023 am31 10:53AM in Insurance & life assurance
On the 31/07/2023 I was driving back from a pick up at Gatwick airport.  I just got of the Sheepcotes Roundabout on the A131.  A BMW was in the left lane when with no warning it did a right turn across the fast lane, the intention was to cross all three lanes and pull into the no entry hard shoulder.

I had to slam on the brakes and hit her in the rear drivers side wing.  My almost new Peugeot e-208 GT is now a complete write off, it has been declared a total loss.

I've been approached by the company representing the other driver offering me £22,502 which doesn't cover the outstanding finance on the car, the settlement figure is £23500.25.  I put down £5000 when I purchased the car.

I stand to loose not only the £5000, but a new car and still end up with a short fall not enough to cover the outstanding finance.

The police were at the scene, however at the end of the incident, the lady (BMW driver) went off with the police and myself, my wife, my son and his girlfriend were abandon at the side of the road having to make our own way home, over 90 miles.

This whole affair stinks and I am left now feeling that through no fault of my own I now have no new car and a large debt....why are the systems that are supposed to protect us so screwed up ?

I'm had insurance with Admiral for years and have over 20 years no claims bonus.
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Comments

  • If by almost new you mean less than a year old, I would be expecting the at fault insurer to pay up for a new replacement and reject that offer.
  • SPlatten
    SPlatten Posts: 119 Forumite
    Eighth Anniversary 100 Posts Name Dropper Photogenic
    I purchased the car in March'2022 with a 2022 plate.
  • Penguin_
    Penguin_ Posts: 1,477 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    Did you look at GAP insurance?
  • An offer to settle is just that - an offer.  Reject it and, if you haven't already done so, provide evidence of the replacement value of your car.
  • SPlatten
    SPlatten Posts: 119 Forumite
    Eighth Anniversary 100 Posts Name Dropper Photogenic
    edited 4 August 2023 am31 11:18AM
    No I didn't, I understand what GAP insurance is, but it always didn't seem necessary when I am already paying for full comprehensive insurance....now I feel stupid, I already pay Admiral for fully comprehensive insurance.\

    Its like secondary insurance, pays out when your insurer doesn't pay enough.

    I have rejected the offer, they will not budge, I've asked for a replacement car of the same age and milage as the original, they had said I would have to talk to my own insurer....my own insurer will not even cover the finance.
  • dunstonh
    dunstonh Posts: 118,599 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I stand to loose not only the £5000, but a new car and still end up with a short fall not enough to cover the outstanding finance.
    It is a risk when buying a new car under finance that this can happen.    Cars cease to be new the minute you drive it of the forecourt.  You instantly take a loss in value that could be lower than the finance you take out.      GAP insurance exists for this very purpose.

    Some car insurers will value a car at its new price in the first 12 months of purchase.  

    This whole affair stinks and I am left now feeling that through no fault of my own I now have no new car and a large debt....why are the systems that are supposed to protect us so screwed up ?
    a) did you have gap insurance?
    b) did you use an insurer that uses the new car price in the first 12 months?
    c) have you claimed out of pocket expenses from the other party?

    Car insurance a scam!
    Your post mentions nothing to suggest a scam.

    I purchased the car in March'2022 with a 2022 plate.
    ahh, so the "as new" price in the first year wouldnt apply here.

    Its like secondary insurance, pays out when your insurer doesn't pay enough.
    It would possibly make a good bolt on to car insurance but effectively, it covers something that would not apply to most drivers.   So, shouldn't be part of car insurance.

    Ultimately, if you disagree with an insurer, then you raise a complaint and provide evidence by showing multiple listings of the same vehicle and age and same spec where the price is higher than what is being offered.






    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • SPlatten
    SPlatten Posts: 119 Forumite
    Eighth Anniversary 100 Posts Name Dropper Photogenic
    edited 4 August 2023 am31 11:46AM
    I say its a scam because I would expect fully comprehensive cover to provide 100% cover and replace with like for like, it doesn't and as I've already said, no I didn't take Gap.  Admiral is supposed to be so good, I can't say I've experienced anything that would make be want to recommend Admiral, even on the Sunday night we had to make our own arrangements to get home.

    If I pay money to someone for a service is it wrong to expect that service to be provided ?
  • Value of your car =/= balance left on the finance agreement.

    It would only be the same if depreciation was straight line across the entirety of the loan, with a final value of zero and a 0% interest rate - none of which are ever true.

    Misunderstanding mathematics does not make it a scam.
  • SPlatten said:
    I purchased the car in March'2022 with a 2022 plate.
    Looking at Autotrader the offer seems to be about right for a 22 replacement e-208 GT, so I think you are on a hiding to nothing to get much movement on that. 
  • DullGreyGuy
    DullGreyGuy Posts: 15,736 Forumite
    10,000 Posts Second Anniversary Name Dropper
    If by almost new you mean less than a year old, I would be expecting the at fault insurer to pay up for a new replacement and reject that offer.
    If the OP had claimed off their own insurance and it was under 1 year old then they may be eligible for a new car. Claiming from anyone other than your own insurance you are only entitled to indemnification which would mean the value of a X month old car not a brand new one.

    SPlatten said:
    I say its a scam because I would expect fully comprehensive cover to provide 100% cover and replace with like for like, it doesn't and as I've already said, no I didn't take Gap.  Admiral is supposed to be so good, I can't say I've experienced anything that would make be want to recommend Admiral, even on the Sunday night we had to make our own arrangements to get home.

    If I pay money to someone for a service is it wrong to expect that service to be provided ?
    But you say you aren't claiming from your insurance so what's the fact you have comprehensive insurance got to do with anything? 

    Admiral are supposed to be good value, this is not the same as being good. There are insurers out there that give exceptional service but they aren't found on aggregator sites etc (or at least not their products with top service) because they are materially more expensive and so simply wont sell when compared to budget policies.

    You are entitled, ultimately via the third party insurer, to be put back into the same position as you were. From what you say, you are in negative equity on your car and so when they payout the figure that your car was honestly worth you still are in that position. They aren't obliged to put you in a better position than you were before the accident. 
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