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my car was declared total loss, insurance/finance query


aymski86
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Just wanted to know if any of you guys had a similar experience to mine

recently my car (audi a3) was declared a total loss by my insurance provider ( vandalism - firework put through the back window and burnt a lot of interior)

anyway they have offered me a settlement pay out blah blah

but they also asked if any outstanding finance on the car and if so to send a document from them with the amount outstanding which i have now done.

i had the car for about 3 years and it was actually due it final baloon payment, now will the insurance pay the finance first then give me the change? I persume they will but just wanted some confirmation

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As above, you will need to negotiate with them.

Start collecting adverts for cars similar to yours that support what YOU think the car is worth. Do this now as the value WILL drop over time.

Be prepared to keep at them - I had a car nicked ages ago and it took a month of prtracted negotiations to get them where they should have been with their offer.

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thanks for your reponses guys...

i already declined their first offer...although to be fair it wasnt too bad, sent in some adverts of similar cars(unfortunatley hard to find as my spec was very rare , but i found ones with a less spec going for more than what they offered! )

i just wanted to know what happens with the finance and you guys confirmed what i suspected, that must of been the reason they wanted a letter with the outstanding balance,

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I just hope the insurance payout is enough to cover the final payment on the car. Otherwise they'll end up paying out what they think it's worth and you'll have to make up the difference. So it'll cost you money to get nothing out of the deal.

If the payout is more than the final payment then that money will be yours to go towards a new motor.

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their first offer was nearly 2k over what my final payment is , and ive told them i want more so i doubt they will go lower....the final payment is not what the car is worth its just what is outstanding on the finance agreement , im sure even the num nuts at insurance companies will know this

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the final payment is not what the car is worth its just what is outstanding on the finance agreement , im sure even the num nuts at insurance companies will know this

Not necessarily, my brother in law's Range Rover Sport is currently valued at £2k less than his final finance payment. :o

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Not necessarily, my brother in law's Range Rover Sport is currently valued at £2k less than his final finance payment. :o

obviously it will be different in everyones circumstances, if you outstanding finance balance is more than what the car is worth the insurance will obviously pay less its only their obligation to give you market value

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  • 4 weeks later...

ok following on from this, as expected they will pay off finance first and send me what ever is left over.

however my concern is they have now asked why the car was not mot'd. the incident was on 29th september the car would of been 3yrs old in the middle of august.

i honestly dont know why i didnt think about the mot, i done my tax in the august so that obviously didnt flag up anything about my MOT, and didnt have any post saying about an MOT.

Can they invalidate my claim because of this

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and didnt have any post saying about an MOT.

Can they invalidate my claim because of this

MOT wise, you get no reminders. I forgot completely about mine for about 3 months (from April to June/July) and then got it done once I remembered. Now it's all computerised, they should send a reminder as they do with Car Tax. Luckily I was not in an accident nor had to show my documents.

The answer to your next question is :- yes they can. Anything like that, and they can invalidate it. Not sure how many times insurance companies have, but shows what an honest mistake can do. Not sure what you can do, apart from say it was an honest mistake?

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I have come across this situation in the past and the insurers accepted it was a genuine error and lowered the payout by a small sum. Wasn't anything too significant so wasn't really an issue. However, depends totally on your insurer. Technically your car was not road worthy and therefore insurance is invalidated.

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  • 2 weeks later...

i know i do consider my self very lucky with the outcome

i have another question for you guys, the letter the insurance company sent me out included all the deductions which were needed, finance etc, i understand all apart from them saying they need to deduct 'x' amount of money for the outstanding premium? i dont understand this...i have pasted the context it was used below so help clarify

''On the basis of my research I have valued your car at £10,750 having taken into account the additions you purchased with the vehicle. Your £450 policy excess needs to be deducted from your settlement as well as £50 for having an MOT on the vehicle at the time of incident and £1074.96 for the outstanding premium owed''

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