Chance of any recourse?

Author
Discussion

NikBartlett

599 posts

81 months

Sunday 8th December 2019
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I would just be thankful that the 3rd party warranty company payed out at all smile

Butter Face

30,283 posts

160 months

Sunday 8th December 2019
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NikBartlett said:
I would just be thankful that the 3rd party warranty company payed out at all smile
Absolutely this. Phenomenal that they would stick out the £15k in the first place. I wouldn’t see it as £2k lost, rather as £15k saved.

Rewe

1,016 posts

92 months

Sunday 8th December 2019
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It is just like any insurance product; the payout will be determined by the terms and conditions that the premium is based on.

It looks like you chose your policy wisely.

ASONI

Original Poster:

245 posts

93 months

Sunday 8th December 2019
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Warranty direct were great, in fact I was slightly shocked that it went through so easily, no trying to find an excuse to get out of paying etc.

I also have no issues with the £15k limit they paid. I defo see it as a great result. I’m also happy to have a brand new engine with warranty for £2k.

Maybe I’m struggling to put the point across properly about what I did have a slight issue with, especially without it sounding ungrateful which isn’t the case.

Basically, by refusing a cash payout they forced me into a repair that doesn’t make any logical sense (as it’s more than car is worth) and also cost me a huge amount of money in the process.

At the end of the day, they still paid out £15k cash to BMW so what difference would it really make giving it to me instead, thus avoiding any unnecessary hardship for?

As I said, I was fortunate to have been able to afford the £2k but what if I couldn’t? It seems a bit insane that I would have had to scrap a £15k car despite having a valid warranty covered issue.

ASONI

Original Poster:

245 posts

93 months

Sunday 8th December 2019
quotequote all
Rewe said:
It is just like any insurance product; the payout will be determined by the terms and conditions that the premium is based on.

It looks like you chose your policy wisely.
Thing is with insurance, say a £1000 laptop that needed a £1200 repair, they would simply give you £1000 cash less excess so you can buy a new one, or do whatever you want to with the money.

They wouldn’t force you into the £1200 repair route where you have to contribute the extra £200 yourself or end up with nothing at all.

Rewe

1,016 posts

92 months

Sunday 8th December 2019
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ASONI said:
Rewe said:
It is just like any insurance product; the payout will be determined by the terms and conditions that the premium is based on.

It looks like you chose your policy wisely.
Thing is with insurance, say a £1000 laptop that needed a £1200 repair, they would simply give you £1000 cash less excess so you can buy a new one, or do whatever you want to with the money.

They wouldn’t force you into the £1200 repair route where you have to contribute the extra £200 yourself or end up with nothing at all.
Ah yes, I get it now. It does seem odd that there isn’t an option to pay you directly and let you source own repairs. Mind you, once your engine was in bits what other choice did you really have?

Graveworm

8,494 posts

71 months

Sunday 8th December 2019
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ASONI said:
Warranty direct were great, in fact I was slightly shocked that it went through so easily, no trying to find an excuse to get out of paying etc.

I also have no issues with the £15k limit they paid. I defo see it as a great result. I’m also happy to have a brand new engine with warranty for £2k.

Maybe I’m struggling to put the point across properly about what I did have a slight issue with, especially without it sounding ungrateful which isn’t the case.

Basically, by refusing a cash payout they forced me into a repair that doesn’t make any logical sense (as it’s more than car is worth) and also cost me a huge amount of money in the process.

At the end of the day, they still paid out £15k cash to BMW so what difference would it really make giving it to me instead, thus avoiding any unnecessary hardship for?

.
The 15K to BMW would include Vat so their net cost was only 12.5K.

KungFuPanda

4,330 posts

170 months

Sunday 8th December 2019
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Seems like warranty companies really cannot win here.

They get slated for knocking back claims however when they settle a claim up to the maximum amount allowed under their own terms and conditions, there's someone moaning.

Durzel

12,258 posts

168 months

Sunday 8th December 2019
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KungFuPanda said:
Seems like warranty companies really cannot win here.

They get slated for knocking back claims however when they settle a claim up to the maximum amount allowed under their own terms and conditions, there's someone moaning.
That’s not strictly what the OP is saying, but expecting a warranty company to dish out £15k in cash for a failure, rather than “forcing” him to pay £2k, is not remotely realistic.

For starters it’s a warranty on the car, not some kind of insurance policy. They fixed the car, per their contract.

The choice he had was not to pay anything and accept his car wouldn’t be fixed, or not to take out the policy in the first place, or at least reading the T&Cs if one did.

Edited by Durzel on Sunday 8th December 19:10

Sheepshanks

32,725 posts

119 months

Sunday 8th December 2019
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ASONI said:
Basically, by refusing a cash payout they forced me into a repair that doesn’t make any logical sense (as it’s more than car is worth) and also cost me a huge amount of money in the process.

At the end of the day, they still paid out £15k cash to BMW so what difference would it really make giving it to me instead, thus avoiding any unnecessary hardship for?

As I said, I was fortunate to have been able to afford the £2k but what if I couldn’t? It seems a bit insane that I would have had to scrap a £15k car despite having a valid warranty covered issue.
You said earlier by they time it was realised it was going to cost £17K you were £3/4K in anyway - so even if WD had paid you £15K as the value of the car you'd have had to pay the dealer the £3/4K.

Was there any discussion with WD about a cash settlement? I don't know what they do if they write off the car - do they expect to keep it, so they can sell for salvage?


If you feel genuinely miffed about it, it might be worth a complaint, first to WD who will reject it, and then to the Ombudsman, who will often find in favour of consumers.

Edited by Sheepshanks on Sunday 8th December 19:18

lyonspride

2,978 posts

155 months

Sunday 8th December 2019
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I reckon the real cost was £2K and that's what they're passing to you, and the 17K thing is just BS to make you think you're getting a good deal.

Reciprocating mass

6,029 posts

241 months

Sunday 8th December 2019
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Either that or it’s a wd good pr thread to counter somebody else’s from a while ago
Sorry A bit cynical of me whistle

ASONI

Original Poster:

245 posts

93 months

Sunday 8th December 2019
quotequote all
Rewe said:
Ah yes, I get it now. It does seem odd that there isn’t an option to pay you directly and let you source own repairs. Mind you, once your engine was in bits what other choice did you really have?
That was the dilemma, as by that point I didn’t have an option but to go ahead with the repair as engine was in bits.

ging84

8,885 posts

146 months

Sunday 8th December 2019
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I'm not sure I quite understand.

Would the company have paid out £15k and written off the car, or would they have only paid up to £15k if it was repaired, and nothing if you could not afford to make up the difference ?

If they'll pay out as a mechanical write off then the limit makes sense, but if not it seem somewhat of an arbitrary choice but then perhaps if the policy is priced on the car value then it makes sense.

ASONI

Original Poster:

245 posts

93 months

Sunday 8th December 2019
quotequote all
Durzel said:
That’s not strictly what the OP is saying, but expecting a warranty company to dish out £15k in cash for a failure, rather than “forcing” him to pay £2k, is not remotely realistic.

For starters it’s a warranty on the car, not some kind of insurance policy. They fixed the car, per their contract.

The choice he had was not to pay anything and accept his car wouldn’t be fixed, or not to take out the policy in the first place, or at least reading the T&Cs if one did.

Edited by Durzel on Sunday 8th December 19:10
Thing is, that’s exactly what they did, ie dish out £15k cash to me for the failure.

But I had to give them an invoice proving I had carried out and paid for the work first.

When I say force, I don’t mean literally or directly. But by leaving me with the option of paying the extra £2k myself or scrapping a £15k car, it’s not much of a choice.

ASONI

Original Poster:

245 posts

93 months

Sunday 8th December 2019
quotequote all
Graveworm said:
The 15K to BMW would include Vat so their net cost was only 12.5K.
They paid the £15k directly to me once I gave them the invoice showing I had carried out and paid for the work.

ASONI

Original Poster:

245 posts

93 months

Sunday 8th December 2019
quotequote all
Sheepshanks said:
You said earlier by they time it was realised it was going to cost £17K you were £3/4K in anyway - so even if WD had paid you £15K as the value of the car you'd have had to pay the dealer the £3/4K.

Was there any discussion with WD about a cash settlement? I don't know what they do if they write off the car - do they expect to keep it, so they can sell for salvage?


If you feel genuinely miffed about it, it might be worth a complaint, first to WD who will reject it, and then to the Ombudsman, who will often find in favour of consumers.

Edited by Sheepshanks on Sunday 8th December 19:18
Maybe not quite £3/4K but certainly 2/3k.

If they gave me £15k payout, I’d have been left with about £12/13k after paying BMW.

BUT, I wouldn’t have had to pay out over £2k myself and with the £12/13k, I could have bought a replacement car.

I’m not sure what they would do with the car, I assume get whatever they could for it? They could have clawed back some of the £15k they paid out that way as well!

Ps yea I did ask them but they flat out said no. The advisor even agreed that it’s crazy to go ahead with a £17k repair when car is only worth £15k!

Sheepshanks

32,725 posts

119 months

Sunday 8th December 2019
quotequote all
Durzel said:
For starters it’s a warranty on the car, not some kind of insurance policy. They fixed the car, per their contract.
That’s completely wrong, and it’s a big part of the reason why people misunderstand, and have hassle with, this product.

It absolutely is an insurance policy, it’s got underwriters and everything! You’re insuring against the car breaking. The payout limit is the value of the car.

Sheepshanks

32,725 posts

119 months

Sunday 8th December 2019
quotequote all
ASONI said:
Maybe not quite £3/4K but certainly 2/3k.

If they gave me £15k payout, I’d have been left with about £12/13k after paying BMW.

BUT, I wouldn’t have had to pay out over £2k myself and with the £12/13k, I could have bought a replacement car.

I’m not sure what they would do with the car, I assume get whatever they could for it? They could have clawed back some of the £15k they paid out that way as well!
Bearing in mind the way it works is you pay the bill and then claim it back, once the garage had done the strip and diagnose and it was realised the bill was going to be £17K, did you have a discussion with WD about a cash settlement?

ASONI

Original Poster:

245 posts

93 months

Sunday 8th December 2019
quotequote all
Sheepshanks said:
That’s completely wrong, and it’s a big part of the reason why people misunderstand, and have hassle with, this product.

It absolutely is an insurance policy, it’s got underwriters and everything! You’re insuring against the car breaking. The payout limit is the value of the car.
Exactly, I do understand this part although i know your comment wasn’t directed at me.

The bottom line is it’s perfectly possible to be extremely grateful for the £15k they did pay but also a bit annoyed that it was conditional on me repairing the car at a personal cost of £2k plus myself.

The limit of most insurances/warranties is value of car, but in reality, its an almost arbitrary figure as you would never expect a repair to cost more than that limit in the first place (especially when it’s a £15k car) and if it did, you would never expect anyone to insist on going ahead with that repair and forcing you to pay the extra amount yourself!

The way I see it is that providing it’s a valid claim, which mine was, I shouldn’t be a penny out of pocket other than the excess, because that’s why I pay for the insurance in the first place.