Chance of any recourse?

[LeoSayer]

ASONI said:

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!

The car would have remained your property.

So, if the warranty co agreed, you would have been able to sell the car for scrap to claw back the £2/3k.

Either way, the warranty co are only paying £15k to you.

What exactly did you ask them?

What would have happened if the repair was £30k?

I'm surprised the warranty company doesn't have some kind of write-off clause.

Who set the value of the car at £15k?

[ASONI]

LeoSayer said:

The car would have remained your property.

So, if the warranty co agreed, you would have been able to sell the car for scrap to claw back the £2/3k.

Either way, the warranty co are only paying £15k to you.

What exactly did you ask them?

What would have happened if the repair was £30k?

I'm surprised the warranty company doesn't have some kind of write-off clause.

Who set the value of the car at £15k?

Based on their policy, I would have to carry out and pay for the £30k repair in order to get the £15k warranty payout, which probably better highlights my point about it not making sense.

The value was set by glass guide i think? Either way i think it was accurate so I have no complaints about what they valued the car at.

[ASONI]

Also for reference, there is no explanation in the T&C's as to what happens if repairs cost more than car is worth so even if i had read them in full, I wouldn't have been aware of this.

[LeoSayer]

With the payout being limited to £15k, what outcome would you have been happy with?

[Aids0G]

Little off the thread, however what would be the outcome for the OP, if he had not taken the warranty out on the car, so had no warranty cover at the time of the incident?

Does the car become a £15,000 insurance write off for the main insurer?

Or if the OP does not have the funds to repair it at all, a previously £15,000 driveway decoration?

I’m sure if there is finance involved they have a policy regarding this situation or would one be required to keep paying the full term for an unusable car?

Thanks all,

[ASONI]

LeoSayer said:

With the payout being limited to £15k, what outcome would you have been happy with?

The payout limit isn't an issue. I'd have been happy with £15k and scrapping the car, as opposed to spending an extra £2.2k out of own money to have it repaired.

As I said, the warranty co gave me £15k anyway, it made zero difference to them whether I kept the money or gave it to BMW to pay for an uneconomical repair.

[ASONI]

Aids0G said:

Little off the thread, however what would be the outcome for the OP, if he had not taken the warranty out on the car, so had no warranty cover at the time of the incident?

Does the car become a £15,000 insurance write off for the main insurer?

Or if the OP does not have the funds to repair it at all, a previously £15,000 driveway decoration?

I’m sure if there is finance involved they have a policy regarding this situation or would one be required to keep paying the full term for an unusable car?

Thanks all,

Good question which i asked my insurance co. They said they would not cover mechanical breakdowns so without the warranty, my loss would be the entire car.

[Graveworm]

ASONI said:

But because I used my own garage, they paid the £15k directly to me so whatever the actual cost of that to warranty direct is, it would have been the same regardless of whether I actually repaired the car or not.

Edited by ASONI on Thursday 12th December 12:53

No they can reclaim the VAT paid to BMW

[LeoSayer]

ASONI said:

I'd have been happy with £15k and scrapping the car, as opposed to spending an extra £2.2k out of own money to have it repaired.

In this scenario, who would pay £3k to BMW for the work already done?

And who would scrap the car? The warranty co aren't in that business.

[ASONI]

LeoSayer said:

In this scenario, who would pay £3k to BMW for the work already done?

And who would scrap the car? The warranty co aren't in that business.

I would have to pay BMW from the £15k payout I got and yes I realise that leaves me £2/3k short, but at least it's coming out of the payout rather than my own pocket.

As for who scraps the car, if warranty co didn't want anything to do with it once they had paid out than I would have gladly taken it back and sold it for whatever I could get, which I'm sure would be enough to recoup that £2/3k I paid to BMW.

[ASONI]

Graveworm said:

No they can reclaim the VAT paid to BMW

How would that be possible? The warranty co had nothing to do with BMW as it wasn't one of their network garages. Everything went through me. How can they reclaim VAT on a cost that I've incured and paid for? All they are doing is reimbursing me for that cost.

EDIT:

"Insurers are unable to recover VAT incurred in obtaining replacement goods or having repairs carried out for a policy holder. This supply is treated as being made to the policy holder regardless of who makes the payment to the supplier."

Edited by ASONI on Thursday 12th December 14:44

[Graveworm]

ASONI said:

How would that be possible? The warranty co had nothing to do with BMW as it wasn't one of their network garages. Everything went through me. How can they reclaim VAT on a cost that I've incured and paid for? All they are doing is reimbursing me for that cost.

EDIT:

"Insurers are unable to recover VAT incurred in obtaining replacement goods or having repairs carried out for a policy holder. This supply is treated as being made to the policy holder regardless of who makes the payment to the supplier."

Thanks looks like I was wrong, apologies.

[Aids0G]

ASONI said:

Aids0G said:

Little off the thread, however what would be the outcome for the OP, if he had not taken the warranty out on the car, so had no warranty cover at the time of the incident?

Does the car become a £15,000 insurance write off for the main insurer?

Or if the OP does not have the funds to repair it at all, a previously £15,000 driveway decoration?

I’m sure if there is finance involved they have a policy regarding this situation or would one be required to keep paying the full term for an unusable car?

Thanks all,

Good question which i asked my insurance co. They said they would not cover mechanical breakdowns so without the warranty, my loss would be the entire car.

Thanks for the reply, I’m quite shocked the ins company wouldn’t cover as one would assume having a car with no engine is as much as a write off as one that’s flood damaged/had a conversation with a tree?

The strange world of insurance! I suppose it could be broken for parts but that’s quite specialist.

[ASONI]

No problem, I wasn't trying to prove you wrong as such as I didn't really know for certain myself either, I just had an inkling that it didn't make sense so looked into it.

[reggie747]

Jesus wept ? My head's spinning. Remind me never to buy a BMW !!

[ASONI]

Aids0G said:

Thanks for the reply, I’m quite shocked the ins company wouldn’t cover as one would assume having a car with no engine is as much as a write off as one that’s flood damaged/had a conversation with a tree?

The strange world of insurance! I suppose it could be broken for parts but that’s quite specialist.

I was suprised too but they said that unless something had actually happened (like an accident), they would not cover it.