Problem with AA repair insurance

[Snappie37]

I hope that someone can give me some advice to pass on to a friend who is having problems with the AA and their car repair insurance scheme.

 

He has a 2000/01 Vauhall Astra diesel estate. He recently noticed oil in the water coolant and took it to his local garage. They diagnosed that the head gasket had gone and that it would be about £800 to repair fully. He had taken out insurance with the AA for such repairs and they sent out a patrol who agreed with the garage. The AA then asked for copies of the car's service history and MOT's before they would authorise payment for the work

On seeing these they rang my friend and asked why at the last MOT the car had initially failed the emissions test but then passed with flying colours afterwards.The answer to this was that the car was serviced in the meantime!! They also queried that the service invoices were hand written rather than computer generated, this being because the garage is small and not even VAT registered.

After a couple of days they wrote to my friend declining his insurance claim on the grounds that the problem with the car was an "ongoing problem" and therefore was not covered!

My friend has paid the bill, as he needs his car back but written "Paid under protest" on the invoice. He has also written to the AA asking how such a problem can be regarded as ongoing but is yet to receive a reply. If they refuse to pay up, as seems likely, what should his next step be?

 

Thanks for any advice.

[Conniff]

This really is typical insurance blatantly looking for an excuse not to pay out.

 

You should request where they got the idea it was an ongoing problem and ask them to reconsider in your first letter to them, sent recorded.

 

They are going to have to show that this is an ongoing problem and not just an excuse.

 

How long has he had the car??

[Snappie37]

Ok, I've got some more details from my friend as to what has actually gone on here. He's had the car 5 years, btw, and had it regularly serviced.

 

The problem with oil in the water coolant was discovered by his little local garage at the time of the latest service and MOT. When he contacted the AA initially they told him that the repair work had to be done by a VAT registered garage. So when the AA patrol came out to confirm the diagnosis of what was wrong, my friend drove the car to another bigger local garage, with the AA van following in case of breakdown.

Over the phone AA Insurance have told my friend that by driving the car, after the discovery of the fault, the fault has become "ongoing"!!!!! But they told him to drive it!!!!..

They have also said that it will take up to eight weeks for them to confirm this is writing as they are "exceptionally busy"........

 

This is just totally unacceptable in my opinion...

[Conniff]

They have also said that it will take up to eight weeks for them to confirm this is writing as they are "exceptionally busy"........

 

 

Of course they are exceptionally busy, sending out all those denials of cover.

 

No more phonecalls, this is important. Write to them using recorded delivery and give them 7 days from receipt in which to respond. Check with the Royal Mail tracker that the letter has been received and signed for and print it off with the date.

 

Ask them to confirm that they will cover the bill and if not the reason why. Once you have this in black and white, then you can take it further.

 

This won't be an overnight fix, but you need to do things this way in order that you can be seen to have done things the correct way so that you will be able to issue a small claim against them if it becomes necessary.

 

Tell your friend to have a good read of the warranty terms and conditions and look for a clause that say it must be repaired in a VAT registered garage.

Edited July 22, 2010 by Conniff

[Snappie37]

The letter was sent on July 24th and signed for on July 26th. I have seen the electronic proof of signature

 

No reply as yet though and its now 8 days since then.

 

The T and C's of the policy do say that it should be a VAT registered garage where any authorised repairs are carried out.

 

What do you think my friends next step should be?

 

Many thanks

[Conniff]

Did he stipulate a date by which he wanted a response?

 

If not then he should write again and enclose a copy of his original letter for their information and give them 7 days to respond favourably.

[Snappie37]

He stipulated 7 days from the date of receipt of the letter. That would take it to August 2nd or August 4th counting only working days.

[Conniff]

Obviously they were hoping to get out of it by saying the servicing hadn't been carried out correctly, but by doing that they would bring into disrepute the garage you had it done at, so abandoned that track and went in search of something else.

 

So the conversation in the office will have gone something like 's**t, the servicing is up to date', then another irrelevent will have piped up 'I know, hows about saying it's an ongoing problem because they drove the car'.

 

I think the office layout in these places are, an office with one person in accepting premiums, an office with one person in sending out the policies and an office with 300 people in and the sign on the door saying 'excuses not to pay out department'.

 

So lets confirm - the repairs were carried out at a VAT registered garage?

You have a written bill marked paid from that garage?

The bill was £800 and this is below what the maximum payout from the insurance is?

 

If yes, then email them asking for a response to your letter dated xxx. You can attach a copy of that letter and bill to the email so they can't come up with any excuse about not having seen it.

 

If he hasn't received a response by tomorrow, then on Monday we Post a Letter Before Action.

 

I say letter before action, but is your friend willing to issue a summons in the small claims court? it can be done on line and will cost about £30 which you claim back.

[Snappie37]

Yes, repairs were carried out at a VAT registered garage.

 

He has a written bill, marked paid under protest!

 

The bill was £838 inc VAT. I have checked his policy and the maximum payment is £2000 in 12 months, however the maximum payout on one individual claim is £500 less a £25 excess.

 

So the most he can claim is £475.00 of the £838.00..still better than nothing!

 

He's on holiday for a few days now but I rang him and he is prepared to go to the small claims court. LBA will take a fews days longer to send as a result

 

Thanks again for the advice !

[Conniff]

Ok Snappie, he has the car back so time won't be an inconvenience except that he can't use the money he paid out.

 

We won't go to court right away, but lets be seen to be doing all possible to come to an amicable settlement with the insurance company before taking that road.

 

The email I mention should be the next contact and asking them to explain what they mean by 'an ongoing problem'.