Car insurance withdrawn indemnity and repudiated claim

[lynzmeek]

Hi sorry if this I posted in wrong place

Im hoping someone can help me

 

.in July 2019 my son stole my car and crashed into a lamppost and a house.

 

He went to crown court where he was given a ban and a fine and told to pay the house insurance excess as he didn't have the money to pay for damages.

 

My insurance had paid indemnity as they said they had a legal obligation. This was for the lamppost he damaged.

 

He has just received a letter from my insurance saying indemnity has been withdrawn and they repudiated the claim and they are now seeking the reimbursement of the costs of £1462.09.

 

Can they do this?

 

Also he doesn't have this amount of money to be able to pay.

 

I would be grateful for any help you can give

[honeybee13]

Hi.

 

I expect people with insurance knowledge will be around later to advise. Have they told you why they repudiated the claim please?

 

HB

[lynzmeek]

No this is the first letter we have had. We didn't know anything about it until he got this letter

 

Sorry I have just read the letter again it says it was withdrawn due to you (my son) taking our insured (myself) car without consent

[unclebulgaria67]

The answer is yes they can claim from your Son.  Under Roat Traffic Acts the Insurers of the Car would have to pay the third party and then they come after the responsible party for the money.

 

Your Sons needs to contract them to make an affordable repayment arrangement.  But make sure if they decline any offer of payment,  that they are asked to confirm in writing that they have declined.   If he does not do this, they may well take him to civil court and gain a CCJ against him.

 

 

[Ethel Street]

It's taken them a long time to write. Is that because the court case where your son was convicted has only happened recently?

 

 

[lynzmeek]

No he was convicted in July 2019 so don't knownwhy its taken so long

[unclebulgaria67]

It is the way Insurance claims work.  There is lengthy correspondence between the Insurance companies involved and they always query that the amount being settled is the minimum cost.

 

And we had Covid in the middle of the period the various parties were engaging with each other. 

 

This will be one claim amongst the thousands of other claims they are handling.

 

It has taken awhile, but I have seen these timescales before.

[Man in the middle]

To help you understand why they can do this, forget for a moment it was your son.

 

Let's say it was a complete stranger who took your car. Your insurers pay out because they are obliged to under the Road Traffic Act (as above). But that payment comes from the premiums paid by all their customers (including you).

 

When they insured your car they took on the risk based on who they were told would be driving it, which presumably did not include anybody who might steal it.

 

They based the premium on that information. Now, somebody who they had not agreed to cover has caused damage by driving it.

 

Why should they (i.e. their policyholders) meet the costs of the claim?

Edited August 20, 2022 by dx100uk
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[lynzmeek]

Ahh ok I will get him to try make a repayment schedule with them. I thought coz it had been so long and they had paid out they couldn't claim it but thankyou for your help