I would appreciate some urgent advice as I am very confused as to what the correct procedures are in my situation.

Thursday morning my husband was driving us to the hospital for a pregnancy scan and as we were driving down a side road a lady pulled straight out of a junction to cross the road and we went straight into her. We swapped details and then I rang Diamond to report the accident. They said that on our description of the damage done (minimal damage to the front passenger panel around the headlight, smashed headlights, minimal damage to the bonnet and damage to the front bumpers etc) and the fact that our car was made in 1996 (VW golf) - it was likely to be beyond economical repair and therefore it would be collected by salvage and we would have to wait for a payout.

We have a fully comp policy so I enquired about the replacement car in this instance to be told I would be directed to Albany Assistance - it transpires after many lengthy and very expensive phone calls to Diamond that we do not qualify for a 'replacement car' because it is a write off. Apparently I would have been offered a hire ancilliary option at renewal that would have meant I could have had a replacement but as I hadn't take up the option, we would have to sign a credit agreement for a hire car. Not happy with this option and I have disputed that I was ever offered this as I simply remember being told i would get a replacement car and wasn't told about any additional options. Plus.. the chap at Diamond told me that I should have checked my policy schedule - when I queried as to where I would find this he told me it would have been sent to me by email. I did not receive this and told him this.

Furthermore, the claims representatives my husband and myself have spoken to have been pretty sketchy in giving us consistant information.

Please can someone clarify what should happen...

Can we still drive the car or as they have declared it a write off despite not having had it assessed yet?

Shouldn't my insurers have contacted the third party insurers by now - because they haven't apparently?

What can I do about not having a car if it is collected by salvage - I can't get to my temporary job without it or get my daughter to her school (both too far to walk and public transport not an option due to the amount of time it takes)?

The third party have admitted liability and been forthcoming so why haven't I/Diamond heard anything yet?

Don't know what to do or how to do it and getting such inconsistent advice from Diamond that I am losing heart!

Sorry for long post.

1) The repairs to the car would cost more than the value of the car, so it is an economic write off. It could be roadworthy, if the headlights were fixed, so they were in working order and there was no damage that could make it dangerous to drive. The Insurers will not have advised DVLA yet that they have written the car off. This will be done when the car has been entered into salvage.

2) Insurance cover for a hire car is not automatic. When you arranged the policy and at renewal you would have been offered (check your renewal paperwork) an optional extra, to be provided with a hire car in the event of an accident. As you do not have this optional cover, you are being invited to enter into an agreement via Albany for a hire car, the costs of which they will try to recover from the third party/Insurers. If they could not recover any of the hire costs you would be responsible. Be careful to make sure that any hire car provided is for a small hatchback and that you only have the car for the period that is absolutely necessary. If you are given a car that is seen as not reasonable or for a period that longer than necessary, the third party Insurers could kick up a fuss and you could end up having to pay a contribution. ( You can make your own arrangement for a hire car and make a claim against the third parties Insurers directly and you don't have to use Albany, as you can employ your own no win/no fee accident claim managers/solicitor to deal with it. They can do the same as Albany i.e sort out Hire car, claim money back of third parties Insurers including your excess)

3) Once the car is picked up for salvage, a report will be done on the car detailing the damage and this will be sent to the third party Insurers with details of the accident. The third party Insurers should also have been contacted by the third party driver, so they will be expecting your Insurers to contact them. From your description of the accident, is reads like the third party was at fault for the accident.

4) The Insurers will offer you a settlement based on the market value of the car, less the excess. If you have the legal assistance cover (albany ?) with your policy, they will ask the third parties Insurers to refund the excess to you, if the third party is decided at fault for the accident.

5) As the Insurers may receive a payment for the salvage because it may have some value after recovery/disposal costs have been paid, the Insurers need to know you are happy with the car going into salvage. It is your car, until you have agreed to pass ownership to the Insurers as salvage. If you do not give instructions, this will delay settlement of the claim.

Sometimes with claims it be better to just go with the flow but keep an eye on what is going on. The settlement for the market value of the car, should enable you to replace the car with a similar car. So get checking the small ads for cars for sale. Check the car value guides, such as glass.co.uk, if the include valuations for vehicle of that age. Have a read of the FOS information on this. http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

Thank you unclebulgaria... helpful advice and informative.

Update thus far - had another slightly heated 'discussion' with Diamond and was told that with regards to the TP insureres offering me a hire car it would be deemed 'unethical' on their part as I had already been offered one by Albany Assistance. However, when calling back and speaking to another person, they didn't bat an eyelid and were quite happy to try the TP for a hire car. Can't do anything til Monday as TP insurers aren't open today - apparently the policy hasn't been cancelled yet so we can still drive the car.

Yes it would be better to get a hire car provided by the third parties Insurers. Perhaps Diamond/Albany would not be happy, as they would earn a commission.

I would try and claim entirely off the third party insurers and write to them that you hold them responsible for your loses etc.

continue to use your car if ok to do so, but get quotes for repair and hire car while being repaired and submit that to them.

Do you have legal cover on your policy, they can do that for you if so.

Obviously easier to claim on your policy but loss of no claim and reluctance to sort out and give you a loan car.

They cant write it off until they have at least inspected it and assessed costs. If beyond economic repair, you can sometimes buy it back if you want and reapir.

If defo not your fault, then I usually claim off TP insurers and leave mine out of it.

Go with the flow is the right way, it's almost over. The only other advice I can give is beware of the Admiral group, they do love thier low total loss offers and will argue the toss over it. Keep at it, your entitled to Glass's retail, unless there is pre accident damage to your vehicle or is in a truly awful state.

They admiral group) are very good at getting their money back. There's good reason why their doing so well as a company.