Car accident finance

[syed,qadri]

Hi I'm new

I recently had a car accident on the car i had finance on , if the car is written off then what happens ? ,I've heard that the insurance company pays out to the car finance company but the car is worth 7.5k or so , the total cost of the agreement is £11k , if the insurance company pays out 8k then do I have to keep on paying for the finance until I pay the difference ?

 

I rang up insurance company told them what happened , mechanics will contact me tomorrow to arrange a pick up of the car , the insurance company said i will have the final say if they scrap it , regardless if it's written off I will get it repaired , the left door doesn't open nor does the boot , the engine has gone it radiator smashed , alot of people saying it's a write-off I hope not , the value of the car is £5,230 - £6,709 , If the repair bill is more than that then it will be a write off

 

If the garage says it's a write off then can i get a opinion from another company , what if the other garage said they can repair it will the insurance company accept it ?

[unclebulgaria67]

It used to be the case that if the repair cost was 60% or more of the market value, that the car would be made a write off. Depending on the nature of the damage, you may be able to negotiate to buy the salvage and out of the settlement amount arrange to get the car repaired.

 

BUT it all depends on the repair estimates and any engineers inspection.

 

If the car is made a write off and the settlement amount is less than the outstanding finance, then you will be left owing the difference. Depends on the terms of the finance. They may let you pay off the relevant amount over the remaining period of the finance arrangement.

 

Speak to your Insurers about the claims process and ask to be informed of any engineers inspection report. Also register an interest in buying the salvage if this is an option should the car be written off.

 

Nb. If you arranged any GAP Insurance with the finance deal, this may cover the difference between write off value and the finance that is left. See if you took out this Insurance.

[syed,qadri]

Thanks,

 

So I have to keep on paying the finance company until I meet the total repayment of 11k , even though I don't have the car can't afford to do that , even though the body shop and insurance company says it's a write off can i still repair it myself with the help of a garage ?

 

It's only done 12k mileage it;s got atleast 100k+ miles to do , it must be worth repairing it myself , it doesn't make sense by writing off and paying the finance company

[unclebulgaria67]

Thanks,

 

So I have to keep on paying the finance company until I meet the total repayment of 11k , even though I don't have the car can't afford to do that , even though the body shop and insurance company says it's a write off can i still repair it myself with the help of a garage ?

 

It's only done 12k mileage it;s got atleast 100k+ miles to do , it must be worth repairing it myself , it doesn't make sense by writing off and paying the finance company

 

Yes you would have to continue paying the finance.

 

But first see if you can buy the salvage and get the car repaired using the claim money.

 

I think most people in this circumstance would look to get the car repaired. Otherwise they are just paying for the remaining finance and have no car.

 

If the damage to the car means that it cannot be repaired, then you will have to accept that and continue paying the finance. You would need to inform the finance company if the car is made a write off.

[syed,qadri]

Yes you would have to continue paying the finance.

 

But first see if you can buy the salvage and get the car repaired using the claim money.

 

I think most people in this circumstance would look to get the car repaired. Otherwise they are just paying for the remaining finance and have no car.

 

If the damage to the car means that it cannot be repaired, then you will have to accept that and continue paying the finance. You would need to inform the finance company if the car is made a write off.

 

Thanks for the reply I got two quotes for the job they are around £4000-£4500 , thats for brand new parts , if i use second hand parts then it will be cheaper , the car only has done 12k so it wouldn't be clever to write it off , I will fix the car without insurance if they decide to write it off

[syed,qadri]

Would it be wise to ring up insurance company to tell them I want work to be carried out in another garage ? , I found a few parts that are needed for my car and are pretty cheap , but do garages quote high charges in order to write the car off ? , surely it would be cheaper to fix the car right ?

[syed,qadri]

When I get a cheque for the write-off does it go straight to the finance company ?

 

I was thinking of writing it off , buying it back , get a similar car get my engine and interior put it in the new car ?

 

I bought the car for £7.791 and the finance agreement is £11,981 or i could use the settlement money pay the finance off and get another car on finance or cash ?

[unclebulgaria67]

When I get a cheque for the write-off does it go straight to the finance company ?

 

I was thinking of writing it off , buying it back , get a similar car get my engine and interior put it in the new car ?

 

I bought the car for £7.791 and the finance agreement is £11,981 or i could use the settlement money pay the finance off and get another car on finance or cash ?

 

Yes the settlement cheque could be sent to the finance company and they would then contact you about settling the balance of the finance. The finance company may not allow you to the end of the finance agreement to pay off the balance. Check the terms of your loan agreement, as to what happens when a vehicle is written off.

 

Check with the Insurance company about buying the salvage back. You should be able to do this, but you would need to speak to the company that handles the salvage for them.

 

If you had outstanding finance to settle, could you afford a new car ? Is it possible to arrange a new loan to pay off the existing finance and to buy a new car ? This is something for you to look into.

[syed,qadri]

Yes the settlement cheque could be sent to the finance company and they would then contact you about settling the balance of the finance. The finance company may not allow you to the end of the finance agreement to pay off the balance. Check the terms of your loan agreement, as to what happens when a vehicle is written off.

 

Check with the Insurance company about buying the salvage back. You should be able to do this, but you would need to speak to the company that handles the salvage for them.

 

If you had outstanding finance to settle, could you afford a new car ? Is it possible to arrange a new loan to pay off the existing finance and to buy a new car ? This is something for you to look into.

 

Oh ok , the body shop took away the car now , I will definitely check how much the car is going for , I don't think i can afford another car at present , I am aiming to pay off the finance then start saving up for a car , don't want to do this finance thingy again if i do take gaap insurance then maybe but i doubt it , I'm looking at my agreement the car is

 

7791 + interest and charges £3287 plus credit facility fee = £11,368.80p wow

 

I can ask them to settle they will send me a amount to settle and how to settle , shall i phone them up now and ask or shall i wait till my car is written of , i might aswel ask for a figure now

 

thoughts ?

[syed,qadri]

I've only used two months of my insurance policy i still have 10 months of cover left , do i get the 10 month worth of insurance back that i paid for ?

 

You mean pay of some of the car existing finance , buy another car and add the new car finance to the existing one ?

Edited March 28, 2012 by syed,qadri

[syed,qadri]

Also can I buy the back from salvage , I have a mechanic who can sort it out for me , whilst I use other means of transport

[Mwynci]

this is getting messy. hope this helps Syed. The insurer will decide if the car is a total loss, not you, you may get another cheaper estimate, but it probably won't be consindered if an engineer has deemed it a total lossthe finance company will have legal entitlement, so any payment firstly will go to them, they can let you know if you can keep the car, speak to them first. If the car is a category C or D total loss, you can put it back on the road, it will need to be MOT'd, vic tested, vosa passed, whatever if it's a cat c, also check with your insurer, they may not want a previous total loss back on cover. buying back the salvage will reduce the offer given to the finance company, prolonging your debt doesn't make sense. Check you have gap insurance, if you do, I wouldn’t bother with the whole looking to repair thing, it's a load of hassle. speak to your finance company and your insurer, that's what their there for(you have paid them for this), if they don't start making sense, ask us.

[syed,qadri]

Thanks I understand , the only reason I will buy back the car is I know a mechanic who can fix the car and get parts very cheaply do all the tests then sell it , I know don't have gaap insurance when i bought the car no-one informed me the car is like new except for the damaged bits , i know i can sell it , or the engine has done 12k on the clock i could sell the engine , whoever buys the car will fix it and sell it why can't it be me . someone rang me just now and asked if i had a personal injury and i did he said i couldn't claim as i was at fault for hitting the barrier , is that correct ?

 

Ok the insurance company inform me the car is a right off , do i then call the finance company or let the insurance company do it ? Would the finance company fight on behalf of me to get a higher fee or would they settle for a lower fee as i will continue to pay them ?

 

Could I get another car on the same agreement on another car ? , could i claim back my paid insurance money ?

 

It's all very confusing

Edited March 29, 2012 by syed,qadri

[unclebulgaria67]

You can only claim personal injury, if there is a third party to claim from, who you can show to be liable. If you crashed into a barrier, you cannot claim for personal injury, unless you have evidence the barrier was faulty or there is some third party you can hold responsible for the accident.

 

You should let the finance company know the car is being treated as a write off by Insurers.

 

You should phone the Insurers to discuss the way forward. Ask them about buying the salvage, so you can get the car repaired yourself. When you phone them, also discuss the outstanding finance and what they intend to do with the settlement payment.

 

You can dispute the write off value the Insurers offer and ask for a higher value, if you have evidence of a higher market value. The Insurers often use the site glass.co.uk to obtain values.

 

The following link from the FOS may help you. http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

 

It is not really that confusing. You need to find someone at your Insurance company who speaks English and who is prepared to spend the time explaining things to you.

[syed,qadri]

You can only claim personal injury, if there is a third party to claim from, who you can show to be liable. If you crashed into a barrier, you cannot claim for personal injury, unless you have evidence the barrier was faulty or there is some third party you can hold responsible for the accident.

 

You should let the finance company know the car is being treated as a write off by Insurers.

 

You should phone the Insurers to discuss the way forward. Ask them about buying the salvage, so you can get the car repaired yourself. When you phone them, also discuss the outstanding finance and what they intend to do with the settlement payment.

 

You can dispute the write off value the Insurers offer and ask for a higher value, if you have evidence of a higher market value. The Insurers often use the site glass.co.uk to obtain values.

 

 

 

It is not really that confusing. You need to find someone at your Insurance company who speaks English and who is prepared to spend the time explaining things to you.

 

Got it , rang my insurance company asked everything that i needed to ask , I will phone the finance company let them know that car its a write off , the finance company will liase with the insurers to negotiate the settlement fee and i will pay the offset fee if different , once they settle i will ask for a settlement fee and will pay it off , and start saving for a new car don't want another on finance want to use cash , thanks for all your help