Do I have a right to ask for cash in lieu settlement for at fault car insurance claim

[Extrovert]

Hi all

 

Unfortunately, last sunday I had my first ever car accident and I accept that it was my fault.

 

My car sustained some damage on the front i.e. bonnet, bumper and atleast a headlight. I have claimed on my policy. The insurance company have arranged their car repair partners to pick up the car for repairs. I wonder if I can get advice for following questions please?.

 

1. How do I know if the insurance company will repair the car or write it off?

 

2. If the insurance company decides to repair the car, do I have the right to ask for the cash in lieu settlement? I would prefer cash in lieu settlement so either I can just sell my car and top up the settlement cash with my own money and get a new car. Alternatively, i can get it repaired at a lower cost and then keep the remainder of the settlement money for next years increased insurance premium.

 

Thanks

[unclebulgaria67]

Hi all

 

Unfortunately, last sunday I had my first ever car accident and I accept that it was my fault.

 

My car sustained some damage on the front i.e. bonnet, bumper and atleast a headlight. I have claimed on my policy. The insurance company have arranged their car repair partners to pick up the car for repairs. I wonder if I can get advice for following questions please?.

 

1. How do I know if the insurance company will repair the car or write it off?

 

2. If the insurance company decides to repair the car, do I have the right to ask for the cash in lieu settlement? I would prefer cash in lieu settlement so either I can just sell my car and top up the settlement cash with my own money and get a new car. Alternatively, i can get it repaired at a lower cost and then keep the remainder of the settlement money for next years increased insurance premium.

 

Thanks

 

Car will be assessed for repair costs and if these are about 70% of the cars value then it could be classed as a write off. Wait for the Insurers to advise, but keep an eye on them, by chasing it up, as it is not unknown for cars to be taken to a salvage yard, with Insurers making up their minds it is a write off. The car is your property until you agree to write off and accept a settlement payment.

 

What some people do, is to get their own inspection, either getting car back or getting a mechanic to visit the car where it is. You might be able to get a cash settlement towards repairs, but you would need a formal estimate from a garage.

[Extrovert]

Car will be assessed for repair costs and if these are about 70% of the cars value then it could be classed as a write off. Wait for the Insurers to advise, but keep an eye on them, by chasing it up, as it is not unknown for cars to be taken to a salvage yard, with Insurers making up their minds it is a write off. The car is your property until you agree to write off and accept a settlement payment.

 

What some people do, is to get their own inspection, either getting car back or getting a mechanic to visit the car where it is. You might be able to get a cash settlement towards repairs, but you would need a formal estimate from a garage.

 

Thank you for your response. Shall I just let the insurance company garage take the car, assess the damage and provide quotation before carrying out the repairs? Or shall I get a private quote before they take the car on next wednesday?

 

can insurance company insist me to get the car repaired instead of offering cash in lieu settlement in both of the options mentioned above? Can I say its my right to have cash in lieu settlement or is it their discretion?

[unclebulgaria67]

Don't make it sound like you are just after the cash. It might start sounding like a crash for cash and suddenly they start investigating.

 

The Insurers will follow a set procedure and you should ask them for contact details of where the car has been taken, so you can speak to someone at the repair centre. You would like the opportunity of seeing whether you can get the car repaired near to where you live, but you need to know the extent of damage to see what options might be available.

 

But heed my warning about not mentioning cash at this stage, as you will create suspicion about your claim.

[Extrovert]

Eeek!!! I have already mentioned cash in lieu settlement to my insurance company in multiple calls. I understand it can raise suspicions but it wasn't a crash for cash and the only thing I am trying to do is get the best available option in my situation of course only if the best option is legal and within my rights.

 

I am not intrested in anything illegal regardless of the amount of money involved. I appreciate your warning and advice as further complication in the claims process can add to the stress I am already going through. Thanks

[liverpoolluke]

extrovert, I hope you car is worth the added hassle subjecting it to a claim, the car must be your property and not on finance anywhere for you to consider any cash in lieu of repair, if the car is on finance legally you are not the owner of the car (depending on finance type)

 

they need to inspect the car to make there decision's, as mentioned above make sure you know where your car is at all time should you want to attempt to buy it back, front end damage can hide further damage (wish bone's, cross member's ,radiators, slam panel to name just a few) most of the time you can get your own car repaired using second hand part's a lot cheaper than the insurance estimates

[Extrovert]

extrovert, I hope you car is worth the added hassle subjecting it to a claim, the car must be your property and not on finance anywhere for you to consider any cash in lieu of repair, if the car is on finance legally you are not the owner of the car (depending on finance type)

 

they need to inspect the car to make there decision's, as mentioned above make sure you know where your car is at all time should you want to attempt to buy it back, front end damage can hide further damage (wish bone's, cross member's ,radiators, slam panel to name just a few) most of the time you can get your own car repaired using second hand part's a lot cheaper than the insurance estimates

 

Thank you for your response. They took the car away today and informed me that the car is not a write off and will be repaired.

 

I am still confused about my initial question that whether I am entitled to cash in lieu settlement or not. Can they insist on repairing the car and if they do can I go to the financial ombudsman to complain?

 

I just want to know what my rights are so if they refuse to offer cash in lieu settlement, is it worth fighting for?

[reallymadwoman]

I think if you read your policy you will find it's up to your insurers how they deal with the claim. You can ask for cash instead (but be aware that it will likely be less than the estimated cost of the repairs since they won't pay the VAT element) but it's up to them if they agree.

[liverpoolluke]

Thank you for your response. They took the car away today and informed me that the car is not a write off and will be repaired.

 

I am still confused about my initial question that whether I am entitled to cash in lieu settlement or not. Can they insist on repairing the car and if they do can I go to the financial ombudsman to complain?

 

I just want to know what my rights are so if they refuse to offer cash in lieu settlement, is it worth fighting for?

 

As far as I am aware you are entitled to get the car repaired by who ever you wish, you may think bill's garage would do a better job than there repair centre, in this case I think you don't get the hire car and the job has to be sensibly priced (either the same or cheaper the the repair center)

As far as asking for cash instead, it is a tricky one, fingers maybe pointed and said you damaged your car on purpose for financial gain (crash for cash)