When does car insurance pay out?

FlorayG

My lodgers car was written off in an accident 5 weeks ago and valuation and condition agreed within 4 days. She borrowed money from her family to buy another so now she's upset that she still hasn't received payment from her insurance to refund them. How long does it usually take?
Also, she has insured her new car with the same company and is now paying two insurances - when she called them, they told her she has to pay it until settlement then they will refund her. This seems weird - why would a car in a scrapyard need insurance?

XRS200

There is no hard and fast rule.  Has she spoken to them?

Sounds like she has taken out a new policy.  She should've changed car on existing policy.

400ixl

Once you have made a claim, you have to pay that policy in full, whether the car is in the scrap yard or not. What she should have done though is to have moved the policy to the new vehicle and not taken out a new policy.

What have they said they will refund? The old policy payments between the accident date and the payout date? Or the new policy?

Sounds like she is claiming from her insurer rather than directly from the 3rd party. If she has paid her excess then they should be paying her out immediately (assuming she is fully comprehensive) and then returning the excess once the 3rd party settles with them.

Which insurer is she with and has the 3rd party admitted liability?

DullGreyGuy

FlorayG said:

My lodgers car was written off in an accident 5 weeks ago and valuation and condition agreed within 4 days. She borrowed money from her family to buy another so now she's upset that she still hasn't received payment from her insurance to refund them. How long does it usually take?

What are her insurers telling her? Many insurers won't pay up until the V5c, keys and other paperwork have been sent in... has she been asked to do this? When did she do it. 

FlorayG

Sorry i don't know any answers, just that she mentioned she hasn't had payout yet. I'll pass all the questions on, thanks, maybe she hasn't done something she should have
I've never had to claim myself so I have no idea what is required

DullGreyGuy

FlorayG said:

Sorry i don't know any answers, just that she mentioned she hasn't had payout yet. I'll pass all the questions on, thanks, maybe she hasn't done something she should have
I've never had to claim myself so I have no idea what is required

It varies by insurer. Insurers themselves can be slow at times but fairly often its because they are waiting for something from someone else be that the policyholder, third party insurer, doctor for a medical report, police for a police report etc etc

sheramber

Normally you are given a certain time to replace the car and covbver will continue on the existing policy.

When our car was written off we had one month from when the company paod to insure  the replacement car on the same policy.

Was the car on finance by any chance? If it was, the settlement would go to the finance company to cover any outstanding loan.

FlorayG

It was her car paid cash for. I wonder if that is why she is paying two insurances currently? Because the old one is not finalised?