Help (advice needed for a friend after incident with car)

TokochickUK

work colleague had an accident in her car that wasn't her fault.

She contacted her insurance (Diamond) and they gave her the name of the garage to take her car to for repairs..The car is fairly old car..The garage looked at the damage and rang her insurance company with the quote..The insurance company told the garage that the cost of the repairs is more than the car is worth so they called it a write off..

She rang the garage who told her the insurance company were writing the car off and to call them..She called them they were not paying anything and that they were going to auction the car and that she could buy it back if she wished..It is her car..Bought and paid for..No HP or anything like that..

She then called the garage the next day to ask if she could pick up her belongings that were still inside the car only to be told that it was in a car pound in Kent..! She lives in Reading..!!

What she wants to know is can the insurance company sell her car..? They won't give her any money til it's been sold..If it's her car how can they sell it..? She has spent a few grand adding bits to the car and wants them back..What should she do..? I would call it theft personally as the insurance company doesn't own the car, they just provide insurance..

What should/can she do..?

raskazz

Firstly, insurance policies are policies of indemnity - the purpose is to put the insured in the same financial position that they were in immediately before the loss.

So she cannot keep the salvage and also get a settlement for the full value of the car, because then she would be in a better position than she was originally. If she wanted to keep the car any settlement would have the value of the salvage deducted, or equivalently she gets a full settlement and buys back the salvage.

Any work carried out on the car will of course be taken into account when it is valued - although of course if you spend £1000 or whatever making the car roadworthy, the settlement will not necessarily be any higher than it would be for any car of the same make, model, mileage and condition.

There's not much point in retaining the salvage unless she thinks she can repair it more cheaply, eg by sourcing second hand parts or getting a friend or family member to repair it.

TokochickUK

Any more advice?

BenL

Very strange policy at diamond.

I would expect them to pay out for the value one of their assesors has put on the car from his knowledge and researching the prices cars similar sell for.

They would then own the car and the documents sent onto them.

At this point they can sell the car at auction to try to make some of their mney back.

The fact that they can pass all the costs to the responsible parties insurance company usually makes it even more straight forward if you are not at fault.

Have the insurance co said anythign about the modifications?

Were these declared when the policy was taken out?

This may be having an impact but the car should be returned if they are disputing the claim due to these, but again as they will be passing the cost on to the 3rd party insurers they shouldn't be massively bothered at this point.

Has the responsible party owned up to insurance companies? Or has the story changed?

mattymoo

A_W_Derbyshire wrote: »

Go to
www.lawanswers.co.uk
and they will help for free

7 posts all advocating the same company - I smell a rat.

TokochickUK

She hasn't agreed to anything yet..She just wants the car back..She's not expecting the car back plus the settlement..

But thank you for the replys so far.