Car Insurance Claim: Excess more than Settlement

[Tiger Swiftly]

Hi all,

 

I had an accident at the turn of the year where I rear ended another vehicle. I was going extremely slowly (sub 5MPH) but managed to do the following...

 

1) £900 damage to the third party's car.

 

2) I have written my car off (apparantly £1800 worth of damage).

 

Now, I went through my Insurance company - Swift Cover - and have just been asked to supply details of how much I paid for my car, how much I feel it is worth etc. Unfortunately for me, when I took out my insurance I did not fully understand how it worked, and believe whatever I put as my voluntary excess would take the place of my compulsory excess... it appears this is not the case, and I am left with an excess of £900!

 

Now, this is more than the market value car, or at the least, the same amount. I drive a Ford Fiesta '97. About 80k on the clock, IIRC. It was in good condition, however, and I've recently had new tyres, a new battery, a new clutch... plenty of work done to the car.

 

If this is the case, what are my options? Am I going to get no payout and lose my car? Or should I be able to have my car returned if I am not receiving any kind of payout?

 

It seems crazy that I will be losing my car, getting no payout AND having increased premiums for the following year!

 

Any advice would be welcomed.

 

Thanks.

[Mossycat]

A voluntary excess is just that, you volunteer to accept that amount of risk in return for a lower premium, any voluntary excess is always added to the compulsory excess.

 

What is your total excess and what have they valued your car at?

 

You say that your car is a write off, is that because of structural damage or because of the repair cost?

 

When you answer these questions we will be better placed to advise you of your options

 

Mossy

[vusys1]

the insurance company may also look for full payment of the outstanding premium if there is any.

[Tiger Swiftly]

A voluntary excess is just that, you volunteer to accept that amount of risk in return for a lower premium, any voluntary excess is always added to the compulsory excess.

 

What is your total excess and what have they valued your car at?

 

You say that your car is a write off, is that because of structural damage or because of the repair cost?

 

When you answer these questions we will be better placed to advise you of your options

 

Mossy

 

Thanks - I understand the way voluntary excess works now, but when I took out my insurance I believed it would override the compulsory. My compulsory was £400, and my voluntary is £500 - £900 in total.

 

It is just the repair cost. The reality is the vehicle is in good condition still - As far as I am aware, it just needs two new lights, a new bonnet and a new grill at the front.

 

I do not have an offer from the insurance company yet; they want me to e-mail them a number of facts, including what I believe the car to be worth.

[Mossycat]

OK from what you say it sounds like this is an economic total loss as opposed to a structural one, ie it costs more to repair the car than it would cost to write it off.

 

You might consider pricing up the parts you want from a local breakers yard and asking your insurers for a settlement where you retain the salvage, that way you then pay for the repairs yourself (getting second hand parts from a breakers yard will normally work out cost effective).

 

Email your insurers the information they want, get prices of similar vehicles to your own from auto trader etc.

 

Mossy