Insurance query
Discussion
Morning all,
Had my car stolen, insurance now have all my documents for the car. my main questions is:
I paid £4,000 deposit before setting up the finance on the car, so technically I am £4,000 down. If they pay out and settle the remaining amount with the finance company. I am still £4,000 out of pocket? will I get some money back or is it just forgotten about?
Had my car stolen, insurance now have all my documents for the car. my main questions is:
I paid £4,000 deposit before setting up the finance on the car, so technically I am £4,000 down. If they pay out and settle the remaining amount with the finance company. I am still £4,000 out of pocket? will I get some money back or is it just forgotten about?
Monkeylegend said:
Do you have Gap insurance?
yes sorry forgot to mention that.I have RTI combination up to £15,000 but I have never had to use GAP before so not sure what it entails.
The invoice summary total was £28,500 but with part ex it went down to £24798 to pay
Amount financed was £22,000 (before interest)and settlement figure would be around £21,000 at this point (with interest taken off)
A decent policy will pay market value. If the m.v. is more than you owe, courtesy of a large deposit, you will get the balance after they've settled the finance.
A cheapo crappy policy will pay m.v. or settle the finance, whichever is the lower. In which case you will lose out courtesy of paying a decent deposit.
Read the policy wording to see what kind of policy you have.
A cheapo crappy policy will pay m.v. or settle the finance, whichever is the lower. In which case you will lose out courtesy of paying a decent deposit.
Read the policy wording to see what kind of policy you have.
TwigtheWonderkid said:
A decent policy will pay market value. If the m.v. is more than you owe, courtesy of a large deposit, you will get the balance after they've settled the finance.
A cheapo crappy policy will pay m.v. or settle the finance, whichever is the lower. In which case you will lose out courtesy of paying a decent deposit.
Read the policy wording to see what kind of policy you have.
it says, they will pay the gap between the settlement and the insurance offer and the difference between that and the net invoice amount. thank you.A cheapo crappy policy will pay m.v. or settle the finance, whichever is the lower. In which case you will lose out courtesy of paying a decent deposit.
Read the policy wording to see what kind of policy you have.
hopefully this means I will get something back to buy a replacement of some kind
superius2014 said:
TwigtheWonderkid said:
A decent policy will pay market value. If the m.v. is more than you owe, courtesy of a large deposit, you will get the balance after they've settled the finance.
A cheapo crappy policy will pay m.v. or settle the finance, whichever is the lower. In which case you will lose out courtesy of paying a decent deposit.
Read the policy wording to see what kind of policy you have.
it says, they will pay the gap between the settlement and the insurance offer and the difference between that and the net invoice amount. thank you.A cheapo crappy policy will pay m.v. or settle the finance, whichever is the lower. In which case you will lose out courtesy of paying a decent deposit.
Read the policy wording to see what kind of policy you have.
hopefully this means I will get something back to buy a replacement of some kind
Jim1556 said:
We shouldn't need gap insurance! What's the point of car insurance if it doesn't fully compensate you for a loss?
Because they will pay out based on the market value of the car, not on the amount of additional costs/interest you might have accrued if buying on finance, and why should they? That's why they try to sell you gap insurance.If you can't afford to pay cash you shouldn't buy
Well that's the common PH view.
Jim1556 said:
We shouldn't need gap insurance! What's the point of car insurance if it doesn't fully compensate you for a loss?
Most insurance companies do compensate you for your loss. You buy a new car, because you choose only buy new cars. After 18 months you write it off. At the time of the loss, you had an 18 month old car. You insurers give you enough to go out and buy a replacement 18 month old car. That's full compensation.But it's not what you want, you only buy new cars. So you take out gap insurance to pay that shortfall.
TwigtheWonderkid said:
I was talking about your actual car insurance rather than your gap cover.
ah ok, I have checked all my policy documents and it doesn't mention anything about what would happen in the event of a total loss from what I can see. maybe I have missed it. but yeah I purchased gap insurance because of the value of the car, I have been stung with being out of pocket from something that isn't my fault in the past. never again.
Jim1556 said:
We shouldn't need gap insurance! What's the point of car insurance if it doesn't fully compensate you for a loss?
As others have said, if it pays the market value of the vehicle then it does fully compensate you. Before the accident you had (say) a car which would sell for £10000, and £12000 of outstanding loan which needed paying off. If the insurance company give you £10000 and you still have a £12000 loan which needs paying off then you've been fully compensated. If they gave you £12000 then you'd be better off than you were before the accident, to the tune of two grand. In theory you could go out and buy a replacement car with your £10000, transfer the finance to it and be in exactly the same position as you were before the accident. Obviously if the finance company won't let you do that and want the loan repaying it's a pain in the backside - but it's not really a quantifiable loss, and your arrangement with the finance company is too remote from your insurer for it to be their problem (why should someone who bought a car with borrowed money get a bigger payout than someone who bought it with their own money?). And some ways repaying a loan early could just as even be viewed as a gain - it saves you interest payments after all.
Aretnap said:
Jim1556 said:
We shouldn't need gap insurance! What's the point of car insurance if it doesn't fully compensate you for a loss?
As others have said, if it pays the market value of the vehicle then it does fully compensate you. Before the accident you had (say) a car which would sell for £10000, and £12000 of outstanding loan which needed paying off. If the insurance company give you £10000 and you still have a £12000 loan which needs paying off then you've been fully compensated. If they gave you £12000 then you'd be better off than you were before the accident, to the tune of two grand. In theory you could go out and buy a replacement car with your £10000, transfer the finance to it and be in exactly the same position as you were before the accident. Obviously if the finance company won't let you do that and want the loan repaying it's a pain in the backside - but it's not really a quantifiable loss, and your arrangement with the finance company is too remote from your insurer for it to be their problem (why should someone who bought a car with borrowed money get a bigger payout than someone who bought it with their own money?). And some ways repaying a loan early could just as even be viewed as a gain - it saves you interest payments after all.
I understand the rti gap, that's a good idea.
It's the 4 or 5 year old car that they won't give you actual value for. Market value varies considerably but in some cases, the insurance pays 80-90% of what it'd cost to replace like for like. Especially, as has happened in recent years with some cars, they've gone up in value.
It's the 4 or 5 year old car that they won't give you actual value for. Market value varies considerably but in some cases, the insurance pays 80-90% of what it'd cost to replace like for like. Especially, as has happened in recent years with some cars, they've gone up in value.
Jim1556 said:
I understand the rti gap, that's a good idea.
It's the 4 or 5 year old car that they won't give you actual value for. Market value varies considerably but in some cases, the insurance pays 80-90% of what it'd cost to replace like for like. Especially, as has happened in recent years with some cars, they've gone up in value.
They can offer that, it is up to the policy holder what is acceptable and what is not. If the policy holder can prove the higher price then that is what is acceptable (unless you had an agreed value policy).It's the 4 or 5 year old car that they won't give you actual value for. Market value varies considerably but in some cases, the insurance pays 80-90% of what it'd cost to replace like for like. Especially, as has happened in recent years with some cars, they've gone up in value.
Forums | Speed, Plod & the Law | Top of Page | What's New | My Stuff