Car Insurance - Variations Of The Total
Loss
HP interest. Where there is outstanding finance
on the car, or it is on a lease, the settlement cheque goes
to the finance company that owns the car. If there is
anything left, you will receive this. If the finance exceeds
your vehicles value (and this could happen if your loan has
a high % APR or it is leased, you will have to send your
cheque for the excess to your insurer, they will pay the
value of the claim to the owner and you will be left to
settle any outstanding debt with your finance provider
afterwards.
Personalised Number Plates. You can usually
keep these. And transfer them to your next car. Tell your
insurer your intentions and then contact the D.V.L.A. to
arrange the transfer. It will take time!
Tax Disc. Your road fund licence is yours, not
your insurance companies or their salvage dealer. You should
remove the disc, obtain a form from the post office and cash it
in.
Premium Refund? Suppose you decide not to buy
another car. Can you have a refund of premium? The answer is
NO. When your insurer pays out your total loss claim they have
discharged their contractual obligation to you. The phrase they
might use is that your policy has 'discharged by performance'
Basically your side of the deal is you pay the full annual
premium, their side of the deal is to provide you with the
protection specified in the contract. They have kept to their
part of the deal. To keep to yours, you must pay the full
annual premium.
Some common questions and answers regarding
total loss can be found on the FAQ pages.
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"Coming home I drove into the
wrong house and collided with a tree I don't have.
" |
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Extracts taken from actual claim
forms submitted to
a number of UK car insurance companies |
Next.....
UK Car Insurance - Third Party Claims
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