Unable to afford end of lease mileage and charges

born_again

Levatorani123 said:

MattMattMattUK said:

henry24 said:

Since the lease was taken out tesla will have reduced prices at least 3 times trying to buy market this will mean the value of your  car is worth very little so now they will want every penny back they can get 

Teslas depreciate slightly less than average over the first three years. In good condition a three year old Model 3 LR AWD with 30k on the clock would be worth around £24-28k if in good condition. The OPs issue is they appear to have caused significant value to the vehicle and Teslas can be expensive to fix.
The OP has yet to explain why they are unable to claim on their insurance which have others have said seems the obvious solution to that part.

When my insurance was up for renewal the price was way too high for me to afford  meaning I would've been stuck not being able to insure a car I was stuck in a lease deal with.

So I may have  incorrectly valued the car  upon taking out my second years insurance. although everything else is correct as I understand it if I try to claim they will  notice the error void  me and I'll prpbsbly find it impossible  or very hard to get insurance  again.

By all. Means correct me if I am wrong on that. 

So just what is the damage?
As insurance is not going to cover general marks & scuffs. As this will be your fault, then you will have to pay the excess. 
Then a claim to declare going forward.

MattMattMattUK

Levatorani123 said:

MattMattMattUK said:

henry24 said:

Since the lease was taken out tesla will have reduced prices at least 3 times trying to buy market this will mean the value of your  car is worth very little so now they will want every penny back they can get 

Teslas depreciate slightly less than average over the first three years. In good condition a three year old Model 3 LR AWD with 30k on the clock would be worth around £24-28k if in good condition. The OPs issue is they appear to have caused significant value to the vehicle and Teslas can be expensive to fix.
The OP has yet to explain why they are unable to claim on their insurance which have others have said seems the obvious solution to that part.

When my insurance was up for renewal the price was way too high for me to afford  meaning I would've been stuck not being able to insure a car I was stuck in a lease deal with.

So I may have  incorrectly valued the car  upon taking out my second years insurance. although everything else is correct as I understand it if I try to claim they will  notice the error void  me and I'll prpbsbly find it impossible  or very hard to get insurance  again.

It somewhat depends by how much you deliberately undervalued the car, but as CW says they will make their own valuation of a vehicle based on model, age, milage etc. and it will fit into a standardised model. I am not totally sure, but I do not think I have even been asked to confirm the cost of the vehicle on my last few renewals and I know that for me to drive another vehicle third-party the only stipulations above the normal legal ones are that it must be UK registered, and valued at less than £80,000.

That being said if you put the value down as £5k then that would potentially be an issue, but I would expect it to have been an issue at point of renewal, not later when making a claim. 

On a slightly separate note I think it might be worth popping over to the Debt Free Wanabee section of the forum and posting an SOA to see what advice they can advise. You seem to be living well beyond your means and digging the hole ever deeper, which is also leading you to make bad decisions. It might be time to stop digging. 

https://www.lemonfool.co.uk/financecalculators/soa.php

Grumpy_chap

Levatorani123 said:

When my insurance was up for renewal the price was way too high for me to afford  meaning I would've been stuck not being able to insure a car I was stuck in a lease deal with.

So I may have  incorrectly valued the car  upon taking out my second years insurance. although everything else is correct as I understand it if I try to claim they will  notice the error void  me and I'll prpbsbly find it impossible  or very hard to get insurance  again.

By all. Means correct me if I am wrong on that. 

@DullGreyGuy may be able to advise on the consequences of the inaccurate policy data and now needing to make a claim.

I suspect the value inputted by yourself is not significant in the policy price as there is usually a value pre-populated when taking out insurance.
It probably depends on the magnitude of the error in value. 
If the car was worth, say £30k, and you entered £28k, that might well be within the realms of approximation and realistic variance.
If the car was worth £30k and you entered £3k, that might well be passable as plausible error.
If the car was worth £30k and you entered £2.8k, that would be hard to explain away.

I suspect a claim now may be queried and open to extra challenge by the insurer as they will wonder why the claim was not filed swiftly after the incident.
(No good being vague about the incident date - the loss adjuster will be able to see the extent to which there has been rusting etc since the damage occurred.)

An insurer may determine that the lower value stated for the vehicle represents the fact that it was damaged prior to the start of the insurance period.

The trouble is, by your own admission, the incorrect vehicle value was a deliberate act and, frankly, dishonest and fraudulent.  It is difficult, therefore, to hold out a great deal of sympathy for your predicament.

DullGreyGuy

The laws around false declarations are CIDRA, though many insurers are more generous than the law requires them to be. 

In short, they have to consider if the false declaration was:

• Reckless or intentional - can void the policy, avoid the claim and keep the premiums
• Careless & they wouldn't have insured if the truth had been give - can cancel the policy & avoid the claim
• Careless & they would have offered terms - policy standard, claim is settled but reduced by the percentage difference in premiums

As you say Grumpy_Chap, if it's £30k and they declared £28k probably won't even be considered a false declaration, though normally people over estimate the value of their vehicles. 

Few insurers have a cap on vehicle values, other than for TPO/TPFT, so the middle option is unlikely to happen. 


In practice, some insurers dont use vehicle value in pricing. The vehicle is insured for market value and all the value given by the customer does is drive 1) if TPFT will be allowed or 2) if a tracker is required. For the later certain models of car will always trigger the requirement irrespective of the declared value. If it was one of these insurers they are unlikely to even consider the declared value... whilst I didnt deal with PH claims in my days so wasnt too relevant for me, I dont even recall it showing in the claims system what the declared value was. 


As to the OP's initial point... it's unclear if they were involved in a single incident that caused substantial damage or if the damage is the consequences of a series of incidents? Each incident would be considered a separate claim and have to be claimed on the policy in force at the time. You'd also have to inform your current insurer, at a minimum, of all the prior incidents you had but had failed to declare. 

Levatorani123

cw8825 said:

Levatorani123 said:

MattMattMattUK said:

henry24 said:

Since the lease was taken out tesla will have reduced prices at least 3 times trying to buy market this will mean the value of your  car is worth very little so now they will want every penny back they can get 

Teslas depreciate slightly less than average over the first three years. In good condition a three year old Model 3 LR AWD with 30k on the clock would be worth around £24-28k if in good condition. The OPs issue is they appear to have caused significant value to the vehicle and Teslas can be expensive to fix.
The OP has yet to explain why they are unable to claim on their insurance which have others have said seems the obvious solution to that part.

When my insurance was up for renewal the price was way too high for me to afford  meaning I would've been stuck not being able to insure a car I was stuck in a lease deal with.

So I may have  incorrectly valued the car  upon taking out my second years insurance. although everything else is correct as I understand it if I try to claim they will  notice the error void  me and I'll prpbsbly find it impossible  or very hard to get insurance  again.

By all. Means correct me if I am wrong on that. 

If it’s the value inputted by yourself I would take that with a pinch of salt. 

I believe the way the systems is set up to quote is that anything that is used in the quote they give you an option/dropdown list but this is not confirmed?

hiw much have you under values by and how much did it save you?

I undervalued  it by 90 % 36,000 but I put in 3600.

It went down from about 220 a month to 90.

My first year was only 95 a month. 

Levatorani123

born_again said:

Levatorani123 said:

MattMattMattUK said:

henry24 said:

Since the lease was taken out tesla will have reduced prices at least 3 times trying to buy market this will mean the value of your  car is worth very little so now they will want every penny back they can get 

Teslas depreciate slightly less than average over the first three years. In good condition a three year old Model 3 LR AWD with 30k on the clock would be worth around £24-28k if in good condition. The OPs issue is they appear to have caused significant value to the vehicle and Teslas can be expensive to fix.
The OP has yet to explain why they are unable to claim on their insurance which have others have said seems the obvious solution to that part.

When my insurance was up for renewal the price was way too high for me to afford  meaning I would've been stuck not being able to insure a car I was stuck in a lease deal with.

So I may have  incorrectly valued the car  upon taking out my second years insurance. although everything else is correct as I understand it if I try to claim they will  notice the error void  me and I'll prpbsbly find it impossible  or very hard to get insurance  again.

By all. Means correct me if I am wrong on that. 

So just what is the damage?
As insurance is not going to cover general marks & scuffs. As this will be your fault, then you will have to pay the excess. 
Then a claim to declare going forward.

It is a big back and dent  plus scuffs in the bumper. 

Levatorani123

DullGreyGuy said:

The laws around false declarations are CIDRA, though many insurers are more generous than the law requires them to be. 

In short, they have to consider if the false declaration was:

• Reckless or intentional - can void the policy, avoid the claim and keep the premiums
• Careless & they wouldn't have insured if the truth had been give - can cancel the policy & avoid the claim
• Careless & they would have offered terms - policy standard, claim is settled but reduced by the percentage difference in premiums

As you say Grumpy_Chap, if it's £30k and they declared £28k probably won't even be considered a false declaration, though normally people over estimate the value of their vehicles. 

Few insurers have a cap on vehicle values, other than for TPO/TPFT, so the middle option is unlikely to happen. 


In practice, some insurers dont use vehicle value in pricing. The vehicle is insured for market value and all the value given by the customer does is drive 1) if TPFT will be allowed or 2) if a tracker is required. For the later certain models of car will always trigger the requirement irrespective of the declared value. If it was one of these insurers they are unlikely to even consider the declared value... whilst I didnt deal with PH claims in my days so wasnt too relevant for me, I dont even recall it showing in the claims system what the declared value was. 


As to the OP's initial point... it's unclear if they were involved in a single incident that caused substantial damage or if the damage is the consequences of a series of incidents? Each incident would be considered a separate claim and have to be claimed on the policy in force at the time. You'd also have to inform your current insurer, at a minimum, of all the prior incidents you had but had failed to declare. 

Unfortunately it's a big difference. It was around 36000 and I put in 3600.

The damage I needed to claim for was a single incident driving  into a concrete bollard that cracked the front bumper and pushed it in plus scuffs. Back  when it happened earlier this year I had  it assessed at a Tesla garage and they quoted 2400, however there are plenty of other scuffs and  small dents plus  the wheel trims that will be noted on the final check.

 Please ask me more if needed. 

Thanks

Levatorani123

Grumpy_chap said:

Levatorani123 said:

When my insurance was up for renewal the price was way too high for me to afford  meaning I would've been stuck not being able to insure a car I was stuck in a lease deal with.

So I may have  incorrectly valued the car  upon taking out my second years insurance. although everything else is correct as I understand it if I try to claim they will  notice the error void  me and I'll prpbsbly find it impossible  or very hard to get insurance  again.

By all. Means correct me if I am wrong on that. 

@DullGreyGuy may be able to advise on the consequences of the inaccurate policy data and now needing to make a claim.

I suspect the value inputted by yourself is not significant in the policy price as there is usually a value pre-populated when taking out insurance.
It probably depends on the magnitude of the error in value. 
If the car was worth, say £30k, and you entered £28k, that might well be within the realms of approximation and realistic variance.
If the car was worth £30k and you entered £3k, that might well be passable as plausible error.
If the car was worth £30k and you entered £2.8k, that would be hard to explain away.

I suspect a claim now may be queried and open to extra challenge by the insurer as they will wonder why the claim was not filed swiftly after the incident.
(No good being vague about the incident date - the loss adjuster will be able to see the extent to which there has been rusting etc since the damage occurred.)

An insurer may determine that the lower value stated for the vehicle represents the fact that it was damaged prior to the start of the insurance period.

The trouble is, by your own admission, the incorrect vehicle value was a deliberate act and, frankly, dishonest and fraudulent.  It is difficult, therefore, to hold out a great deal of sympathy for your predicament.

Yes I am not looking for sympathy, just to understand how to best get out of this situation. 

 2 years ago I was fairly comfortable and had never had  any item of luxury before. 

 Obviously I regret it but it was a series of  setbacks that I couldn't escape from which was the pitfalls of leasing. 

My credit rating is very good hence why I got it, and to be fair I have and will still make every lease payment. 

 It's being able to afford what is likely to be  around 7 to 9 k in total whilst needing to have another vehicle if motability won't help, when I now only have 1200 spare that needs to go on the final 2 payments. 

Levatorani123

As for tbe innsurance I didn't feel I had much choice. I couldn't not have insurance  and I couldn't get out of the lease for another year. There was nothing  they could do.

Had I not become unwell I would still have 5 figures  and be able to  pay this off and would never have had to reduce the insurance price. 

cw8825

Levatorani123 said:

As for tbe innsurance I didn't feel I had much choice. I couldn't not have insurance  and I couldn't get out of the lease for another year. There was nothing  they could do.

Had I not become unwell I would still have 5 figures  and be able to  pay this off and would never have had to reduce the insurance price. 

you have made a catalogue of bad decisions, which I am sure others will pick apart in due course

But in terms of the situation now.
I would be tempting to make a claim, its insured for a reason, not for the wear and tear but the damage to the bumper,
Sooner that is done the better

definitely speak to the lease company, there's no point burying your head in the sand  you need to try and a plan in place.