Insurance on a lease car

Lord Danoir the first · January 17, 2014, 10:11:33 AM

Long story short, a tree fell on Bruce's car during the recent high winds.

Car subsequently written off.

Insurance co' send someone out and value the car at 10K

Lease company write to us/insurance co with a settlement figure of 8K

I'm now told that the lease has now been cancelled and we'll have to start again with a new car and pay a deposit all over again..... so basically that leaves me £1,500 out of pocket even though there's a +£2000 difference in the valuation and settlement.

I'd have thought the insurance co would pay that, but apparently not.

Pissed off that through a totally blameless accident, I'm now forking out £1,500 to buy the ginger c*nt a new car!!!!!

Questions:
1 - does that seem right to you?
2 - is there any recourse?
3 - what's the best way to dispose of a body?
4 - would anyone miss a ginger anyway?

Green_Ninja · January 17, 2014, 10:26:23 AM

So the car was valued at 10K but the settlement figure was 8K who the fook accepted that?

Saying that I am not surprsied as this is the way the insurance industry work, they rip us off cos they can.

No one would miss the ginger ;-) tell him it's his fault for parking where he did and the shortfall is to come out of his salary :-)

Millhouse · January 17, 2014, 12:11:21 PM

as i understand it you are the insured party so it's up to you (not the lease company) to accept/reject the offer so:

1) don't accept the insurance companies first offer
2) don't accept the insurance companies 2nd offer
3) make sure you buy GAP insurance next time

Dom1 · January 17, 2014, 12:27:00 PM

For the actual difference in value you are insuring gap insurance is expensive, which I worked out after I bought it.

Lord Danoir the first · January 17, 2014, 12:31:09 PM

There is no gap, we owed less than the car was worth.

I also assumed the insurance co would deal with us, but before we knew it, a settlement had been sent, paid and the case closed.

Now Bruce has no car (they take the loan car back literally the minute the claim is settled), and we've got to lay out for a new one.

Alzo · January 17, 2014, 12:42:26 PM

Would a bicycle be acceptable...thus making the ginger green...????

Millhouse · January 17, 2014, 12:50:34 PM

ah. misread it.

that's a bit of a shit situation dan!!

Green_Ninja · January 17, 2014, 12:59:59 PM

Quote from: Lord Danoir the first on January 17, 2014, 12:31:09 PM
There is no gap, we owed less than the car was worth.

I also assumed the insurance co would deal with us, but before we knew it, a settlement had been sent, paid and the case closed.

Now Bruce has no car (they take the loan car back literally the minute the claim is settled), and we've got to lay out for a new one.

Who pays for the insurance? If it's you get the insurance Ombudsman involved, if the lease company no idea what you can do other than my suggestion above.

Dom1 · January 17, 2014, 01:05:14 PM

Can we just clarify - was Bruce in any way injured in the incident?

If not, then really he should be if you are paying for it.

Just saying.

Alzo · January 17, 2014, 01:05:45 PM

Who's to say that the lease company didn't get the £10k.

Millhouse · January 17, 2014, 01:45:28 PM

this is suddenly ringing bells, think i've heard this before.

something about the lease co. being the owner of the vehicle rather than the driver. probably soemthing in the lease t&c's

tucola · January 17, 2014, 03:24:31 PM

Exactly; isn't this a terms of lease contract issue rather than an insurance of car issue?

i.e. does the contract allow them to terminate the lease in the event of the car being written off and what is to happen to the deposit in that eventuality?

From what you have said, it doesn't sound like they're after you for the difference in the car's value and the insurance settlement.

It just sounds like they're treating the old lease as cancelled and forfeiting the deposit.

PJ · January 17, 2014, 03:41:39 PM

So technically (if I'm reading this right), the lease company is +£3,500 as a result of the accident. £2000 on the difference between the settlement figure and the valuation/payout and £1500 deposit which they have kept.

Even if they are allowed to cancel the lease and keep the deposit, they are still £2000 in profit from an accident, surely that can't be right?

Lord Danoir the first · January 17, 2014, 04:21:20 PM

Apparently, the lease company have only received settlement and that's all the insurance co' has paid out even though they valued the car higher.

My argument with the insurance co' is that I'm at a considerable financial loss, the car was insured fully comprehensive and there's enough money in the 'pot' for them to pay me the difference so I can put a deposit on another car and not lose out!!

Manic636 · January 17, 2014, 08:40:20 PM

The Lease company will be happy as they are covered for the balance hence will accept the payment, you could check t&cs of your insurance to see if they are obliged to give you anything bit essentially the owner of the vehiclehas accepted a settlement figure which answers the obligation on the part of the insurer. Should you have been in negative equity then you would probably found that GAP was included in the leasing agreement.. shit news I suspect, I wonder if there's a way to argue the deposit value should be accrued onto a new car due to you paying to insure the car to market value..