HP car written off, Insurance not covered

[ehosby]

hi,

I purchased a car on hp with blackhorse about 1.5 yrs ago. It had a 4 year repayment but unfortunately the car was involved in an accident was written off but only had 3rd party, fire theft insurance.

I called blackhorse and they said i would have to pay it off regardless of if the car was written off.

Was just wondering if this had happened to anyone or any advice regarding this.

Many thanks.

[Rob S]

I think you will find this is normal practice in such a situation. You made the decision to insure the car TPFT and the only way in which you might recover the costs of the car are if there is a third party who was involved in the accident who is at fault. Sadly the loan is still outstanding and will need to be paid.

[liquidauctions]

whose fault was the accident?

[mattyprice4004]

If the accident was your fault, why do you think they will terminate the agreement? You caused the damage, you chose to insure 3rd party... your problem unfortunately.

[postggj]

check your agreement

 

car finance agreements usually have GAP/SHORTFALL ADDED TO THEM

[Rob S]

You usually have to specify that you want GAP in the first instance, and all GAP will do is to make up the shortfall between what the insurance company pay out and what was paid for the car when it was purchased (depending on the type of GAP policy purchased). Some GAP policies will provide a replacement car.

[Gaston Grimsdyke]

GAP won't help you even if you had it. You are in breach of contract by not insuring it fully comp, so no chance of a GAP payout. The loss is yours, same as if it was a cash purchase.