Car stolen insurance pay off and PCP

jono987

This stinks to be honest - surely the Insurance CO cant just deal instantly.
We had two cars stolen last year and were arguing for ages over valuation - i would 100% complain about the nature that they valued it and gave you literally no chance to discuss it. Should not matter who financed it - what if she took a bank loan out and used that to pay, and the bank loan was with santander? The insurance company has no relation to the finance company surely - definitely take it further. Its very well known that insurance companies always offer less than they are prepared to go to to begin with

Bl4ckGryph0n

Actually that is not correct. The insurance company has an obligation to pay those who have the financial interest in the vehicle first.

daydotz

Be careful with the new car clause if its a lease(your not the registered keeper) this doesn't apply & not all companies offer thus admiral group (Shelia's wheels) or you have to be the first registered keepet so a ore registration may work against you

jono987

But what if you take a loan out to buy a car? Or is this only for finance specifically? I must admit i have never financed a car so i am unsure. Still think it is unfair!

Bl4ckGryph0n

Agreed good point.

For clarity a lease is HP and not the same as a PCP.

Bl4ckGryph0n

This is clearly in the context of a PCP and thus incorrect. If you took out a cash loan, also known as personal loan or unsecured loan, then nobody else has a registered claim against that vehicle, therefore it is an irrelevant point.

I hope that helps and clarified it.

jono987

Yes thanks, obviously now i see Car finance is specifically for that car whereas financing through other means (loan etc) is not specifically for that car.
Never knew the insurance company dealt direct with a finance company - i always assumed the insurance would pay you out and then it would be your responsibility to settle the finance.
Seems a bit of a con and an easy way for the insurance company to pay less just to settle the finance and not give any chance for discussion. Then again it also stops people getting paid out, spunking the money and sticking two fingers up to the finance co lol.

Bl4ckGryph0n

Exactly that latter point as in that scenario the secured loan no longer has an asset that could be retrieved.

outoftheknow

Over here I lease but includes maintenance etc. Very different in some respects (zero deposit, final value means nothing in terms of the car value it is only used for finance) but ultimately different scenario in terms of insurance.

I own the car and am the first registered keeper. I take insurance which must meet the financiers default policy. Or the default policy.
Fully comp any licenced driver that has your permission to drive is covered. Value is market or agreed and that is my choice. Car stolen they pay wha it says in the agreement. It isn’t lease specific insurance and if you want gap insurance (and as shown in this thread it is very desirable) you need to take a seperate  policy out. Still your choice though.

Financier couldn’t care less what you get from insurance - you owe them a figure every day of the lease agreement and at the end owe the totally unguaranteed value.

With zero deposit you owe more than the car is worth as soon as you drive it out the showroom. New for old for old least a year (or gap) is essential.

Sorry your daughter had to go through this @neuty but I think it has been a good lesson for all of us when it comes to financing and insuring a car. It is important the two things are matched or you are aware you may be short a bit if the worse happens. True for all finance - check what the finance you are taking means carefully and don’t rely on common terms like PCP to assume what may happen.

tickedon

If your daughter is looking to get a new car... take a look at: New 2019 Abarth 595 UK Deals - Average £2572 Saving

Gives an indication of the kinds of discounts available new. I've no idea of the different models, but, the cheapest model has a list of £16,145 but is available for £14158 on PCP with a dealer. I'd then use this as a benchmark with carwow to get dealers bidding against each other.

Also check the finance rates - AvailableCar aren't actually too bad at 7.9% (used can often be 9-13%, and indeed higher still), but on a new car the manufacturer finance is only 6.9%. So even if the car is a bit more expensive, your payments and indeed total cost could still be lower if the finance is a better deal (and it normally is on new cars, as manufacturers support them).

Note that for every car, whether new or used, as soon as you drive it off it depreciates considerably. Any accident/write-off in the first few months, or indeed 12-18 months, is likely to leave you out of pocket as depreciation isn't linear and is higher the newer the car is. Gap insurance, as you've learned, is how to protect against this. For used cars, there is usually a dealer premium/margin of £1500-2000 (the difference between your trade price if selling, i.e. valuation, and what you'd need to pay to buy it)