Renault Megane - Car written off under finance.

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Mon 16 Nov 2020 14:38
Renault Megane - Car written off under finance. - AlexMegane

Good afternoon.

Following accident i had some time ago ive received message today from my insurance company saying the car has been classed as total loss.

This car is still Under HP finance and my question is as the category of total loss is N So i can keep the car for the price agreed by my insurer but what happens to the finance?

All information i have found in internet basically say i have to settle the finance after car being written off. What if im keeping the car or want to keep the car? Does it mean i have to settle the finance aswell or can I carry on paying the monthly instalments?

Has Anyone been in similar situation and came out of it without finance issues?

Thank you for any replies,

Alex

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Mon 16 Nov 2020 19:42
Renault Megane - Car written off under finance. - AlexMegane

Hello Again.

Another question, regarding the insurance Policy.

If i decide to keep the car what happens to my insurance on this car? Does it Just carry on or am i obligated to find another insurance from the date of getting the car back on the Road and i will still have to pay the previous one as i am on montly payments.

Never had a such situation, totally mind blown by how it turned out from a bump on the back of the car.

Hopefully someone will help,

Much appreciated,

Alex

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Mon 16 Nov 2020 22:25
Renault Megane - Car written off under finance. - Falkirk Bairn

How old is the car? What value has been offered by the insurer?

How much to buy it back?

How much do you owe the bank/HP company and how long does the agreement last/finish.

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Mon 16 Nov 2020 22:38
Renault Megane - Car written off under finance. - AlexMegane

Ive requested second valuation of the car as i wasnt 100% Happy with the valuation and Just waiting for them to get back to me. If they raise the valuation by 200 pounds and everything will go smooth (which i would be surprised if does but never been in such situation before) then i will have finance paid off and car kept without putting Any money in and also without getting anything extra which sounds satisfying enough.

Apart from fixing the car myself at extra cost after, of course.

But what happens with my insurance? The current one?

What ive read So far its basically saying even if the car is written off i still have to finish paying my yearly premiums which will be 9 months as i Just started with them Policy ????‍??

Or can i Just carry on with the insurance i have now on the written off car when i buy off them?

Thank you for any help,

Alex

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Mon 16 Nov 2020 23:15
Renault Megane - Car written off under finance. - bathtub tom

I suspect you'd have to continue paying the insurance premiums for the term of the policy.

I also suspect the policy will now end, as the contract has been completed (write off) and payment made.

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Tue 17 Nov 2020 07:20
Renault Megane - Car written off under finance. - Falkirk Bairn

Just read your post again.

"Bumped up the back" - did somebody run into the back of your car or did you cause the damage yourself?

There is a difference

1) Your insurer writes off the car - if it is your fault they pay out "the replacement cost" and you are on your own after they deduct the excess on the policy + a deduction fr the car value if you decide to keep it

2) Your insurer writes off the car HOWEVER if it was a 3rd party that ran up the back of you you can claim on the 3rd party driver's insurer directly - they cannot write off your car but will pay the car value, no excess and reimburse you for any additional / out of pocket costs you incur.

To get full advice you need to give values, make/model, age, mileage, - own fault or 3rd party, cost of repair at body shop, is it cosmetic damage you can live with? An older car can be written off as the costs of repair often has car hire costs, admin costs etc etc it is easier for the insurer to pay out for a write-off and move on. The car may be perfectly OK to use.

25 years ago I knew a chap with an old Fiat - he had been in several minor bashes that were not his fault - run up the back buckled bumper/ tail gate, bashed panel by delivery lorry at work etc etc - he had had roughly £500 3 times in just over a year. A banger, but the car still ran which was the important bit and £1500 in his pocket.

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Tue 17 Nov 2020 08:27
Renault Megane - Car written off under finance. - daveyjp

The insurance cover ends as soon as a claim is settled.

The remainder of the premium due to be paid for the policy will deducted from your payout.

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Tue 17 Nov 2020 09:23
Renault Megane - Car written off under finance. - Bromptonaut

The insurance cover ends as soon as a claim is settled.

Depends on the policy terms I think. LV wrote off my Roomster following an own fault accident where I scraped it against a nearside m/way barrier. The policy was left open for a period, months rather than weeks IIRC, during which I could get the replacement covered. As I needed the car to get to work replacement was a matter of days.

If the policy is ended then the full balance for the years cover will be due. Annual policies via instalments are based on a loan to cover the full annual premium.

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Tue 17 Nov 2020 10:35
Renault Megane - Car written off under finance. - AlexMegane

It was third party fault and i was claiming on my own insurance due to insurance of third party being low class with negative reviews. Would rather have my car fixed the right Way as i have no trust to insurances with negative reviews.

As ive been told by my insurance company the excess they will probably try to cover up from the third party and also NCB should not be affected but more information i will find out as soon as they send me another valuation of the car as i will be trying to settle claim to have it done.

Just wanted to know what to be Prepared for yet, what extra costs i May not be expecting.

Just not really understand why is that a term of the insurance?

Ive got rid of a car insurance once, after 6 months of having it with only the fee to pay and another time it wasnt a problem to Just finish the Policy after couple of months because i have got rid of the car totally. Im really surprised thats what happens when car is written off with Policy, doesnt seem right.

But maybe within years something changed, changed for not too good.

More info about the car is 8 years old, its cosmetic damage plus a dent on the boot lid which probsbly caused the costs of repair too high for getting it repaired. I think some paint work shops tend to get everything On the list for a changing instead repairing to get higher costs for themselves aswell, am i wrong?

Not sure how much they asked for the repairs in the paint shop work on behalf of my insurance company but when i asked myself at first it would be done for 500 altogether.

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Tue 17 Nov 2020 11:13
Renault Megane - Car written off under finance. - daveyjp

If the damage isn't serious and you can live with it consider cancelling the claim.

Alternatively forget claiming through your insurance, get the other insurance company to accept liability and have a basic cheaper repair (you are correct your insurance will price for a whole new back end and boot) done at a local insurance approved bodyshop which the other company are invoiced for.

I have done this and a £2.5k insurance job quote cost the other side less than £300.

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Tue 17 Nov 2020 12:02
Renault Megane - Car written off under finance. - AlexMegane

If the damage isn't serious and you can live with it consider cancelling the claim.

Alternatively forget claiming through your insurance, get the other insurance company to accept liability and have a basic cheaper repair (you are correct your insurance will price for a whole new back end and boot) done at a local insurance approved bodyshop which the other company are invoiced for.

I have done this and a £2.5k insurance job quote cost the other side less than £300.

Is it even right thing to do? Just cancel my current claim and start with another company? I think i will Just carry on with the claim,something i started needs to be finished i believe.

Cosmetic damage is something i can fix with the time, Just get new boot lid myself which should be difficult to find as Very common car it is.

My biggest wonder now is regarding insurance, its Just like not to understand how they work in such situations. Im gonna ask them all the question by end of the Day Just thought someone would Clear it up for me more before.

Thanks for any or your advices tho,

Alex

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Tue 17 Nov 2020 12:42
Renault Megane - Car written off under finance. - sammy1

This does not make sense to me. If the person who ran into you is insured why are you claiming on your policy. It is up to your insurance to sort out with the others insurance and if you are not at fault in any way you should not be out of pocket. What dies the finance company say as technically they own the car. You say the car is 8years old and do not trust the other parties insurance to do a repair does not make sense!

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Tue 17 Nov 2020 12:52
Renault Megane - Car written off under finance. - Falkirk Bairn

Say the value of a car is £3,000.

The fact that the owner owes say £3,500 to an HP company is not a concern to the car insurer.

To cover yourself for debts you may incur if the car is stolen, written off you need to buy GAP insurance.

A person who works with a daughter in law owed some £4,000 on a car.

She was about 1/2 way through the agreement when she drove into a flooded dip in the road. A write-off and the insurer paid some £3,500. She had GAP insurance that took her back to a much higher value - it paid out something over £2,000.

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Tue 17 Nov 2020 12:55
Renault Megane - Car written off under finance. - AlexMegane

This does not make sense to me. If the person who ran into you is insured why are you claiming on your policy. It is up to your insurance to sort out with the others insurance and if you are not at fault in any way you should not be out of pocket. What dies the finance company say as technically they own the car. You say the car is 8years old and do not trust the other parties insurance to do a repair does not make sense!

Ive already explained why im claiming On my insurance and also this theard is not about where should i claim my accident Just about confusion what happens next after the car was written off.

Thanks,

Alex

Edited by Avant on 17/11/2020 at 15:19

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Tue 17 Nov 2020 15:32
Renault Megane - Car written off under finance. - Bromptonaut

Ive not been in such situation before, So instead of judging if you cant say anything helpful Just stay away from here. I will appreciate it.

Thanks,

Alex

I guess you're new here.

This stuff happens. Sometimes it's a reasonable point carelessly or unfeelingly made. Other times there are folks here who are always looking for a scrap (though one of the worst offenders seems to have left).

(Edit: sorry, I deleted the confrontational bit shortly before you posted.)

Edited by Avant on 17/11/2020 at 23:42

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Tue 17 Nov 2020 17:15
Renault Megane - Car written off under finance. - FP

"Other times there are folks here who are always looking for a scrap (though one of the worst offenders seems to have left)."

Perhaps you missed one or two recent posts in another thread. :-)

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Tue 17 Nov 2020 15:03
Renault Megane - Car written off under finance. - Bromptonaut

This does not make sense to me. If the person who ran into you is insured why are you claiming on your policy. It is up to your insurance to sort out with the others insurance and if you are not at fault in any way you should not be out of pocket. What dies the finance company say as technically they own the car. You say the car is 8years old and do not trust the other parties insurance to do a repair does not make sense!

The OP has replied directly to this but a couple of thoughts.

It's not unreasonable to claim on your own policy if you want the claim dealt with by somebody on your side. More so if you lack the time to get involved. There's quite a bit of sense in being cautious about letting the other party's insurer sort it out. Apart from the trust issue it really can be problematic if they make a pig's ear of the repair.

Longish piece on BBC R4 Money Box about this a couple of weeks ago. Other party's insurer, Admiral IIRC, allegedly did v.poor quality repair. They were not helpful in sorting his complaint and as he's not their customer no access to the Ombo.

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Tue 17 Nov 2020 15:58
Renault Megane - Car written off under finance. - sammy1

The fact that when you come to renew your policy should weigh heavily in a decision to claim on your policy even more so if NOT at fault. Just wait till the policy renewal lands on the door mat.

Other readers gather information from the forum not just the original poster, so to advise that his actions may not be the best is justified. Maybe his 8yr old car would not have been written off which devalues it straight away!

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