Car on HP and Insurance Loss

kevster1009

Does anyone know if you have a car on HP and owe more than its value, what would happen if it was written off?

Would I be able to continue to pay the monthly pymt without telling them and buy a new car from the Ins...obviously I need one.

Would the Ins company inform them at all?

Not a clue what to do here and a bit worried in case my car is Written Off!

peediedj

i had a car on hp and it was a write off,as i didnt have GAP insurance,the insurance company gave me £3500 but i owed £4000 so had a diffrence of £500,i went back to dealer i bought it from and bought another car on hp,and he let me add the £500 i owed onto hp for the new car

matthewn.green

You will owe the finance company. And they will know.

If the car is new enough, i'd reccomend GAP insurance. There are a few types, either pay invoice value of the car, settlement figure, or you can get a policy which will pay out whichever is greater, which is useful.

plane_boy2000

Think you will find the insurance co will know that its on finance and will likely settle the outstanding amount direct. If this is not enough then the finance co will approach you for the balance