Car - write off - insurance heque?

deiselack

Hi guys I couldn't find a thread to help so posting again. Sorry If I'm repeating.

My friend had a car crash and was at fault, she rear ended a woman on a wet day. The car is a write off. Only thing is she's still paying for the car on h.p, she's due a cheque from insurance but it's nearly 3 weeks now..How long does this normally take does anyone know?? She's getting annoyed now as she has to bum lifts/taxi's etc..

thanks all

MugMugs

Insurers aren't stupid and if they don't already know will find out that the HP company have an interest on the car. As such, your friend will have the HP debt discharged to the amount agreed with the Insurer. They will unlikely give her the cheque in her own name.

Atlantic Dawn

MugMugs wrote: »

Insurers aren't stupid and if they don't already know will find out that the HP company have an interest on the car. As such, your friend will have the HP debt discharged to the amount agreed with the Insurer. They will unlikely give her the cheque in her own name.

Exactly, I would assume they will check all cars 5 years and less that there's no HP Outstanding on them, otherwise I am of the understanding that the HP company will sue them for the money as technically it's not the "owners" car to have replaced.

Yawns

As above the cheque will go to the HP company and your friend will receive anything that's left if applicable. So looks like your friend could be bumming lifts and getting taxis for a while.

MugMugs

Atlantic Dawn wrote: »

Exactly, I would assume they will check all cars 5 years and less that there's no HP Outstanding on them, otherwise I am of the understanding that the HP company will sue them for the money as technically it's not the "owners" car to have replaced.

Quite right. It has happened in the past where an insurer settled with the insured who cashed the cheque. The finance company subsequently sued the insurer and won meaning the insurer had to pay the finance company too and attempt recovery against the insured.

GoodisonPark

Cheque will be issued to the HP company for the write-off value. Your friend will have to make up the shortfall , if any.

deiselack

Thanks everyone, she still hasn't heard back anyway, looks like she might be getting the bus!

MugMugs

deiselack wrote: »

Thanks everyone, she still hasn't heard back anyway, looks like she might be getting the bus!

Has she called the finance company and asked if it has been discharged with them?