PCP and car write off

shanklypuss
shanklypuss Posts: 8 Forumite
in Motoring
Hi - this is my first post in a long time, so please be kind (hopefully this in in the right forum, too)

I was caught in the middle of a three car 'shunting' accident yesterday and my car is likely to be written off. The driver at the back of the shunt has admitted liability - so I am claiming a courtesy car from their insurance for the time being.

Today, I spoke with my GAP insurer to make a claim and I realised the three year GAP insurance ran out two weeks ago. This is all new to me and I am still a bit in shock, but what I am trying to understand is whether I will be out of pocket so far as the PCP goes.

I owe just over £7k and the car (according to webuyanycar.com) is the same value. I am three years into a four year PCP.

Can anyone tell me what I can do from here? Will the insurance negate the outstanding PCP (and final balloon payment) and leave me to start from scratch? Or will I need to pay out anything?

So far, google has given me lots of advice on why to purchase GAP and PCP, but very little on what to do with both aspects when accidents happen.

Any advice/ insight will be hugely appreciated
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Comments

  • wgl2014
    wgl2014 Posts: 1,144 Forumite
    The insurance will pay out their valuation on your car if it is a write off. If this covers the outstanding balance of the finance then no worries.
    As you are towards the end of the agreement the difference between the two values shouldn't be too much.
    I would suggest doing a bit more research on the value of your car so if the insurance comes back with a lower figure you have some evidence to argue with.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    First Anniversary Name Dropper First Post
    edited 28 March 2018 at 7:40PM
    Why did you take out a 3 year GAP on a 4 year PCP?

    You need to get a settlement figure from the finance company and hope that your insurer gets near to covering this if they write off the car.

    Have you actually spoken to the finance co. and explained the situation?
  • Penelopa.Pitstop
    Penelopa.Pitstop Posts: 1,145 Forumite
    First Post Name Dropper First Anniversary
    Don't look at trade in price at WBAC, you would pay much more for the car if you were buying exactly the same one from retail. That's the amount you should aim for when getting paid by insurance company.
  • shanklypuss
    shanklypuss Posts: 8 Forumite
    neilmcl wrote: »
    Why did you take out a 3 year GAP on a 4 year PCP?


    I said the same thing to the insurance firm today - when I bought the car, I was adamant that I needed the gap to cover the full payment term. Today, they told me they only offer three year deals - my scribbled notes on the paperwork at the time of sale say different... but my notes are clearly not legally binding. I have simply screwed up without realising. Gutted.
  • CardinalWolsey
    CardinalWolsey Posts: 713 Forumite
    First Anniversary Name Dropper First Post
    shanklypuss wrote: »
    I said the same thing to the insurance firm today - when I bought the car, I was adamant that I needed the gap to cover the full payment term
    I take it you bought the insurance directly, and did not take up the dealer on their offer of gap insurance?
  • shanklypuss
    shanklypuss Posts: 8 Forumite
    CardinalWolsey wrote: »
    I take it you bought the insurance directly, and did not take up the dealer on their offer of gap insurance?

    I did it direct through the dealer
  • Nasqueron
    Nasqueron Posts: 8,780 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    For future reference, do it externally

    My dealer offered 3 year cover for £499, I got full replacement GAP cover for 4 years (deferred for 1 year of car being new so would be replaced by insurance) for about £250 or so. Car is 4 years old in December, I still have 20 months where, should the worst happen, I would get a brand new car to replace that
  • dacouch
    dacouch Posts: 21,637 Forumite
    Name Dropper First Anniversary First Post
    You may have a complain against the dealer over the sale of the gap
  • k3lvc
    k3lvc Posts: 4,174 Forumite
    First Anniversary Name Dropper First Post
    dacouch wrote: »
    You may have a complain against the dealer over the sale of the gap
    On what grounds ?
  • dacouch
    dacouch Posts: 21,637 Forumite
    Name Dropper First Anniversary First Post
    k3lvc wrote: »
    On what grounds ?

    Whether the policy was communicated as being for the full term.

    Or whether selling a 3 year policy if the dealer offered 4 year policies is appropriate.

    A lot will hinge on the paper work on both sides or lack of paper work
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