oh my goodness... what a mess... totalled car.. void insurance? void gap insurance?

[choppy22]

Hi,

i really dont know where to start with this, but ill start with the facts. im looking for advice and to know my rights in the following situation.

Thanks in Advance xx

 

i purchased an 07 plate car in april 08, i financed this and i am the registered keeper, however when it came to insure the car my dad was and still is the main driver and i was the named driver, i had a crash on july 11th- just over 48 hours ago and the car has been totalled... first of all on the insurance policy document it stated the policy holder (my dad) was the registered keeper.. which we boobed on! as i am.. do we invalidate the insurance policy because of this? the insurance company asked me when i phoned the claim in who the registered keeper was i stated myself he said he would have to speak to the underwriters to see if this was ok, he came back stateing he would need to see proof of purchase on the car and the v5 (logbook) before the claim can go ahead, why do they need to see this as i have already advised them that i am and the policy holder isnt as stated on the policy? he asked how the incident happened i explained, he advised i would need to take responsibility straight away. so the car got towed and was pronounced economically unfit to repair (write off). also the insurance evaluator has already called with 48 hours to give us a price for the totalled car on the terms that the documents that were asked are provided they will pay x amount of money? surely the hiccup with the registered keeper and them offering money isnt a problem ?

 

now the car is on finance and at the time i took the finance out i took gap insurance in my name.. now do i invalidate this gap policy too because i am not the main driver on the car insurance policy as i am on the gap insurance policy?

 

1 more thing i have made a claim to gap insurance and they have said i need to provide documents, what documents would they ask for? will they ask for an mot certificate because just a little more info the new car was due its 1st mot in june 2010- it was new at purchase 2007....so no mot certificate...

 

am i gonna get done over?

 

this is not how i run my life style its just a mix up of oooh im sorting the insurance out dads sorting the mot.. and the v5 and he thought the same...

 

any advise will be sooo much appreciated... and i thank my lucky stars for seatbelts and airbags otherwise me and my little boy might not be sat here right now.

 

many thanks x

[honeybee13]

Hello and welcome to CAG.

 

Now, take a deep breath and relax. I'm not experienced in motor matters, but we have some good people who are and they should be along later.

 

You've given us a lot of detail to go on and I'm sure when the right cagger turns up, they'll have advice for you. It's not going to ruin your life, keep cool and count your blessings for now.

 

I'll contact a couple of insurance gurus and see if they can look in.

 

HB x

[loopinlouie]

It doesnt look good for both policies I am afraid. The contradictions of keeper etc will void them and as the gap policy pays depending on what the first policy gives you, the gap wont pay out when looking into why problems of insurance payment of claim have arrisen

 

To put it bluntly they will suspect you of naming your dad as keeper on the first policy to save costs, there is a term for this situation, but I forget at present. Think its called fronting.

 

Its not a matter of being 'dun over' but incorect info giving doubts and invalidating.

 

Sorry not a positive comment.

[choppy22]

surely they wouldnt suspect us of fronting im 30 years of age, dont people 'front' for thier 18 year old kids?... he genuinely was the main driver.. he had a bad credit history i financed the car and i was the second driver.. things just genuinely got mixed up.

 

if the insurance company pay up as they have made an offer today? surely the gap insurance wont see it as problem if the 1st insurance pays up?

 

oh god this is a mess!!!

 

thankyou for your input, i fully appreciate it

[Mossycat]

Your dad is the policyholder, so he would have been the one to complete the proposal form to get the quote.

 

One of the questions he would have been asked is 'Are you the registered keeper AND owner of this vehicle', he obviously answered yes to this, otherwise more questions would have been asked at that stage.

 

The registered keeper is not necessarily the owner, hence why insurers ask the question phrased in that way.

 

The policy was issued on the understanding that all questions had been answered correctly, insurance is based on 'utmost good faith'.

 

Insurers face a common problem of 'fronting', that is where an older person, usually mum or dad insures the car and lets son ro daughter drive it, but the car is really owned by the son or daughter. Obviously this reduced the insurance premiums, so the insurers now have the right to void the policy because what you stated on the propsal form was NOT true, the registered keeper and owner was not correct.

 

If your dad does not have another car (or access to one such as a company car), then there is a very small chance that you could convince the insurers it was an oversight and your dad really is the main user.

 

GAP insurance pays out the difference between what your insurers pay out and what the finance company are owed, you would have to check with them (or their terms and conditions) to see how you stand if your insurers void the policy.

 

Best advice I can give you is to plead your case with your insurers, convince them it was a genuine oversight and explain why/how this error occurred and ask them to consider dealing with it, offer to pay them any difference in premiums.

 

Mossy

[unclebulgaria67]

Agree with mossycat.

 

If you purchased the car on finance, the finance company may well have required the V5 log book to state yourself as the registered owner and that you maintained adequate Insurance on the car in your name.

 

You really should have had the Insurance arranged in your name, with you stating that your dad was the main driver and registered keeper.

 

Why did you think it was ok to put the Insurance in your dads name when he doesn't own the car? The Insurers will be looking for a good explanation about this. Does your dad live at a different address and can you prove the car was kept at your dads address, providing this is the same address shown on the Insurance schedule ?

[choppy22]

he lives at a different address? same address as the insurance policy.. how can i proove that it is kept at his address???

 

the towers from the accident towed it thier?

[Mossycat]

Unclebulgaria may well have given you a lifeline. (Good thinking to check if a different address was involved)

 

Stress to your insurers that the car is his, offer to sign a statement of truth that the car is kept at your fathers property and the only reason that you are the registered keeper was to arrange the finance because your father could not get credit. State that you were not trying to deceive or front (play on your age and hopefully the fact that you have at least the same if not more NCD than your dad).

 

If things do not go well hint (that's hint at this stage) that you might involve the ombudsman.

 

Mossy

[choppy22]

how did he give me a life line? im sorry im new to all this claiming mularky

 

thanks in advance x

[Mossycat]

The fact you live at a different address, and your dad kept the vehicle at his address would show that he is the main user, that will help dispel the 'fronting'.

 

Mossy

[honeybee13]

Choppy22, Mossycat and Uncle Bulgaria give really good advice [thank you guys]. Please keep posting and they will talk you through this.

 

Are you feeling any better?

 

HB x

[choppy22]

oh, i see, but then there is the other concern that im the registered owner.. i own the log book at my address.. which is a different address.. but on the policy it states that my dad is the registered owner. i have stated this to them on the telephone and they spoke to the underwriters.. and the underwriters have said they want to see proof of purchase of the car and the registration certificate, does anybody know why they are asking this>? or do they just want the proof so they can turn round and say we've got the proof we're voiding your insurance?

[choppy22]

honey bee yes im really greatful for this information.. it is fully appreciated i will be donating at the end of this.

 

thanks again xx

[unclebulgaria67]

Just do everything they ask, answer any questions and explain the whole situation to them.

 

If you try to avoid or appear to delay, they will think you have something to hide.

 

If your explanation is per your posts to this site, you really should not have anything to worry about. You registered the car as you had bought it on finance. You thought (wrongly) that because your dad was the main driver/keeper of the vehicle that the policy had to be in his name.

 

Keep it simple.