Car Accident vehicle on finance
I've recently been involved in a car accident that wasn't my fault. I have been advised today that my car could be written off by the insurer. I have finance of £6086 left on the car to pay, with two years left on the finance agreement. My question is, should the car be written off and a settlement figure be offered, will the finance company calculate what finance is owed to them from the date of the settlement figure or for the whole outstanding term? I'm just concerned that I will be left with no money to find a replacement car or worse still with a balance to be paid off.
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Do you have GAP insurance?
The insurance company will offer you the market value of the vehicle if they write it off. Start getting screenshots of similar vehicles for sale, to prove the current market value, in case their offer seems too low.
It might be that the current market value is below the value of your outstanding finance, in which case you claim on the GAP insurance or continue to pay the finance company for a car you no longer own.
Of course, depending on the nature of the damage, you may like to buy the car back from the insurers and repair it yourself.
This is presuming you're claiming on your own insurance- things are, I believe, different if you are claiming from the at-fault party's insurer.They call me Dr Worm... I'm interested in things; I'm not a real doctor but I am a real worm.
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Used cars ads don't prove the market value. They show what people are asking, not what they actually sell for!building_with_lego wrote: »The insurance company will offer you the market value of the vehicle if they write it off. Start getting screenshots of similar vehicles for sale, to prove the current market value, in case their offer seems too low.
For that reason, the Ombudsman's guidelines tell the insurers to use the trade guides (Glass's, CAP, etc).0 -
Used cars ads don't prove the market value. They show what people are asking, not what they actually sell for!
For that reason, the Ombudsman's guidelines tell the insurers to use the trade guides (Glass's, CAP, etc).
Fair point- I'm just going by what I've read on here. Hopefully they have gap insurance
They call me Dr Worm... I'm interested in things; I'm not a real doctor but I am a real worm.0 -
So, gap insurance or not?0
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The finance company will expect the current settlement value of the finance and cannot charge you interest over the whole term. If you call them and ask for settlement figure, this will give you an idea of how much the settlement will be. Settlement figure are usually valid for 30 days from when it is given.
If the insurance valuation is less than the settlement value, you will have to pay the balance. Otherwise, the insurance pays the finance company the settlement and pay you the balance.0
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