Car accident non fault - advice needed

[LouiseRD]

Hi,

 

Firstly thank you to anyone who reads my post and can offer me any advice, it really is most appreciated as I’ve never been in this situation before

 

A week ago my car was written off in an accident, the other driver admitted liability at the scene and the police noted this. 

 

I bought my car 6 months ago on a pcp finance agreement where I would have a lump sum to pay out at the end of three years should I wish to buy the car.

 

I did not take out gap insurance and I am now waiting for a settlement figure from my insurance company. The main concern is that I will now be thousands of pounds in debt due to a potential shortfall in valuation from my insurance company from an accident that was through no fault of my own. 

 

I am currently off work with minor injuries and have been given a hire car by my insurance company. 

 

My other issue at present is that one day prior to the accident I told my insurance company I would be leaving them to go to a new provider on the 31st January. Do I need to stay with this insurance company now I have an ongoing claim with them? 

 

Thanks so much again for any advice, very much appreciated

Edited January 26, 2020 by LouiseRD

[unclebulgaria67]

Better to stay with existing Insurers, as you would have to tell the new Insurers  about the accident event and they would need to provide a new quote.  You may not accept the new quote. The reason it may be better to stay with current Insurers, is that as an ongoing customer, you might be treated better.  Also with the claim being administered by the current company, they will update the underwriters.  If you change Insurers, you would have to  update the new Insurers with the outcome of the claim.  

 

In regard to the accident settlement, the write off valuation should put yourself in a situation where you could replace the car from a garage. Given you only bought the car 6 months ago, you should not see too much of a change to the value.  I would suggest that you collect as much information as possible e.g. car advertisements, details from garages of similar cars for sale.  Also car value guides such as glass.co.uk and Parkers will  give you an indication of current value.   Insurers deliberately make low offers and you would have to go back to them to negotiate true replacement cost with evidence. 

 

Be careful with hire cars, as you will have agreed to be liable for any costs, which they are unable to recover from the third party Insurers.  Third party Insurers may refuse to pay, if the car hire period is too long or they believe the hire costs are excessive. 

 

Do you have legal expenses Insurance to help you recover your excess,any losses you might have suffered and help with any personal injury claim ?  If not, there are plenty of Accident Management companies out there, who can help you with any claim against the third party/insurers.

 

Link to FOS information

 

https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance/vehicle-valuations-write-offs

[LouiseRD]

Thanks so much, I will contact my insurance company in the morning regarding staying with them (Their monthly payment was going to be £20 a month more expensive hence why I originally wanted to change insurers)

 

I do have legal protection too, will this cover any potential shortfalls in my cars valuation? I will also do some research as you have suggested too, thank you so much