Crash! What next?
Discussion
Not sure this is in the right place, I'm sure mods will move if needs be.
The wife has a leased Abarth Spyder which she loves, so much so she asked the lease company for a price to buy it. They duly obliged and the wife agreed to purchase the car at the end of the lease, which is the 31st of this month.
Last night she was involved in an accident, everyone's OK but the car's a little worse for wear - at a guess £5,000+ of damage. The lady who hit her admitted liability and there was a witness.
Now the conundrum, do we simply hand the car back and claim the cost of the damage levy or do we keep the car and arrange for the repairs to be carried out? If we keep the car the repairs will undoubtedly run over the end of the lease, will we be liable for the monthly payments? If we hand the car back is it possible to simply send the bill to the other parties insurers?
She's not sure she wants the car now which means handing it back may be the simplest solution.
The insurers and the lease company can't advise one way or the other, we're awaiting help from the legal cover but really not sure our next move.
Anybody been in this situation or can anybody offer any insights?
The wife has a leased Abarth Spyder which she loves, so much so she asked the lease company for a price to buy it. They duly obliged and the wife agreed to purchase the car at the end of the lease, which is the 31st of this month.
Last night she was involved in an accident, everyone's OK but the car's a little worse for wear - at a guess £5,000+ of damage. The lady who hit her admitted liability and there was a witness.
Now the conundrum, do we simply hand the car back and claim the cost of the damage levy or do we keep the car and arrange for the repairs to be carried out? If we keep the car the repairs will undoubtedly run over the end of the lease, will we be liable for the monthly payments? If we hand the car back is it possible to simply send the bill to the other parties insurers?
She's not sure she wants the car now which means handing it back may be the simplest solution.
The insurers and the lease company can't advise one way or the other, we're awaiting help from the legal cover but really not sure our next move.
Anybody been in this situation or can anybody offer any insights?
You will need to make the lease company aware of the incident, and confirm who they want to repair the vehicle, as the lease is due to be up, they they may just end the lease, deal with the repairs themselves, and then you can just either purchase a new vehicle, or take out a new lease.
If the car is written off, then the payment will go to the lease company for the value of the vehicle, bearing in mind that the value of the vehicle is based on it being a depreciated asset for the Lease company, and not the same value as a private sale, so the insurers may just pay the Lease company the value of the vehicle, as it may be less than the repair costs.
You will need to speak to the Lease company about the payments if the claim runs past the end of the lease, but you should be able to end the lease as normal, and the Lease company just deal with the insurers directly.
If the car is written off, then the payment will go to the lease company for the value of the vehicle, bearing in mind that the value of the vehicle is based on it being a depreciated asset for the Lease company, and not the same value as a private sale, so the insurers may just pay the Lease company the value of the vehicle, as it may be less than the repair costs.
You will need to speak to the Lease company about the payments if the claim runs past the end of the lease, but you should be able to end the lease as normal, and the Lease company just deal with the insurers directly.
Had similar experience when I handled our company car leases. Lease company will want monthly lease paid until they receive either the car back repaired or a settlement from your insurance. If the insurance valuation is less then the value placed on the car you will be liable for the shortfall. Note they will not argue with your insurance company over the valuation to be paid, you need to then balance the ongoing rental payments with any shortfall. Hopefully you will have the lease companies valuation as you were buying it so that takes one variable out of the equation.
Just to draw this to a close. The other party admitted liability which was confirmed by our insurers. Car is with the repairers and a hire car has been delivered.
When the accident took place the lady who hit our car asked my wife ‘what do we do now’ My wife replied ‘ I don’t know’ She had to phone me for instructions.
When the accident took place the lady who hit our car asked my wife ‘what do we do now’ My wife replied ‘ I don’t know’ She had to phone me for instructions.
MAVROS said:
Just to draw this to a close. The other party admitted liability which was confirmed by our insurers. Car is with the repairers and a hire car has been delivered.
When the accident took place the lady who hit our car asked my wife ‘what do we do now’ My wife replied ‘ I don’t know’ She had to phone me for instructions.
This seems appropriate, although not at all politically correct!!When the accident took place the lady who hit our car asked my wife ‘what do we do now’ My wife replied ‘ I don’t know’ She had to phone me for instructions.
https://youtu.be/BDtVJiK8Lws
Ian Geary said:
That's a classic Ian.The other parties insurers telephoned and confirmed they were responsible. Oddly they asked if she'd like to claim for injuries. I would've thought they'd be trying to keep their costs down not inflate them.
On another note she's been given a Toyota Corolla hire car which she loves. So much so she's thinking of getting one. I've driven it and it's a quality product, leather dash, coloured stitching, really tight shut lines, no rattles or squeaks. Build quality has come on leaps and bounds over the last 10 years.
MAVROS said:
The other parties insurers telephoned and confirmed they were responsible. Oddly they asked if she'd like to claim for injuries. I would've thought they'd be trying to keep their costs down not inflate them.
They are, by offering you £500 now (and you signing to say no further claim will be made) they are potentially saving themselves a fortune in whiplash claims later on, when you have had time to speak to the pub lawyer and all the ambulance chasers who have explained there is all this easy to claim money for nothing.Not saying the you would do this, just explaining generally why insurance cos want you to claim a smaller amount at the start.
NGee said:
They are, by offering you £500 now (and you signing to say no further claim will be made) they are potentially saving themselves a fortune in whiplash claims later on, when you have had time to speak to the pub lawyer and all the ambulance chasers who have explained there is all this easy to claim money for nothing.
Not saying the you would do this, just explaining generally why insurance cos want you to claim a smaller amount at the start.
That makes sense, thanks.Not saying the you would do this, just explaining generally why insurance cos want you to claim a smaller amount at the start.
MAVROS said:
That's a classic Ian.
The other parties insurers telephoned and confirmed they were responsible. Oddly they asked if she'd like to claim for injuries. I would've thought they'd be trying to keep their costs down not inflate them.
On another note she's been given a Toyota Corolla hire car which she loves. So much so she's thinking of getting one. I've driven it and it's a quality product, leather dash, coloured stitching, really tight shut lines, no rattles or squeaks. Build quality has come on leaps and bounds over the last 10 years.
I'd encourage you to look at Kia also - I recently bought a Picanto for the missus and it's a lovely car. I've had a Stinger a couple of times as a hire car and it was a great motorway barge.The other parties insurers telephoned and confirmed they were responsible. Oddly they asked if she'd like to claim for injuries. I would've thought they'd be trying to keep their costs down not inflate them.
On another note she's been given a Toyota Corolla hire car which she loves. So much so she's thinking of getting one. I've driven it and it's a quality product, leather dash, coloured stitching, really tight shut lines, no rattles or squeaks. Build quality has come on leaps and bounds over the last 10 years.
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