Is my mum being ripped off?

[1993obj]

My mum had an accident that was her fault the other week. All is going through the insurance. However, the value of their car is worth less than the outstanding finance. The couple involved have a shortfall of ££££ due to outstanding finance.

When I have had a new car I've had bridging insurance to cover this shortfall. However this couple didn't have this and so the insurance will only pay out the value and not cover the outstanding money.

The couple rang my mum who is mid 70s and told her that without the money they will be unable to afford a new car and so they want her to pay for the shortfall.

She is aware it is her fault and was made to feel guilty. I don't want my elderly mother being taken for thousands of pounds if these ppl are just chancing their luck but I do understand she feels it is her fault and wants to put things right but is this right? Should she be paying this or is it their fault for not having the correct cover on their insurance and therefore its tough? I've never claimed on insurance or had an accident so no idea how it all works.

No, if they tried to sell the car with no accident that’s the price it’s worth not what they paid 2/3 years ago. It’s their own fault, no way should she pay!

If she’s a people pleaser can you take her phone and do the blocking for her?

That is a good idea about getting her phone and blocking it, she actually wouldn't know what I'd done if I did, she has no idea about technology!

@WhereverIGoddamnLike

I know it is her fault for pulling out without checking but what sort of shitty driver pulls ahead of someone when they've pulled aside to give way and then been flashed through. They sound like idiots.

Is your mum confident enough to tell them, ever time they call, that this is being handled by the insurance companies and they'll get what they get but she isnt doing anything outwith the insurance?

This is so true, you would never expect someone to be pulling out around you in that situation. The sounds like a right pair of CF's.

When it's daylight so people haven't got their lights on and there are a lot of parked cars (urban area) I could imagine how you might miss someone who was pulled in rather than parked. Or very likely they were just being impatient...

Narrow street with two stationary cars doing the "you first, no you first" thing. A third car moves to pass. Your mum pulls out without looking, OK her doing, not good

Not to be funny but how has enough speed been involved anywhere in this situation to cause a total loss on car three.

Does your mum drive a Sherman tank or something.

@ChocolateCherrybomb
I’m wondering that, the cars would barely be moving, how on earth is it a right off??

I did think that myself at first. My mum's car door was completely knackered and wouldn't close so the other driver must've been travelling quite quickly down the road to cause that. It wasn't that they had both pulled in and had slowed to give way and then when the other person flashed the car behind set off first. My mum pulled in to give way, the other driver came down the road behind her still driving as she pulled out so not sure what speed they were travelling at.

They must have been going a fair whack if they didnt see the exchange between your mum and the other driver (both pulling in then one flashing) so not driving carefully down a narrow road.

It's always the fault of the driver pulling out yadadada, but things like this are still very annoying when someone has been coming quickly when they should have been driving with caution.

Maybe I’m the stupid one, but when I bought my car on finance I was offered gap insurance by the dealership and I turned it down. I assumed that if my car got written off and I still owed on the finance, I’d have to keep paying off the loan but I’d use the insurance pay out to buy a cheaper car. Which would be annoying but my own calculated risk. Did I misunderstand? Would I have had to pay back the finance immediately?

Absolutely not! I work in insurance and it’s tough if they haven’t taken out the correct type! Direct them straight back to their insurance company

Your mother may be responsible for the accident (?) but she is not responsible for their decision to accept the risk and not buy gap insurance. They are playing on her age and feelings of guilt to cover their mistake. Block them first, then consider a cease and desist letter if they ramp it up by writing to her or visiting her. This could be considered harassment.

Bless her heart. Block their number on her phone, she is absolutely not liable.

Your mum should absolutely not be paying. She had done the responsible thing and had her own insurance. It is not her fault the other couple have underinsured. She’s not responsible for their poor financial planning.

Has the insurance company decided the other car is a right off or is this just this other driver saying this?
I cannot for the life of me see how the oncoming car is written off at all, I drive 100k pa and see all sorts of incidents but this is a mystery.

@Hobbes8, yes you would have to pay back the finance immediately.
In many instances, the finance is secured on the car. For the finance company, if you can’t pay the finance then they can come and repossess the car. If the car is written off, they don’t have the security anymore so they would want all their money back (within 28 days in most cases) or the debt gets sold to debt management companies if one wants to set up a plan to pay it

Yes Hobbes sorry you’ve misunderstood. The car is the asset and if you have aHP agreement on it, so your finance is secured on the asset.
The finance company won’t have an asset if it’s written off so the loan agreement will need to be settled.

They’re idiots for not taking out gap insurance. Why should she pay for their stupidity?

Agree with everyone else that your mum shouldn't take their calls or pay any money.

And if the other party think that the insurance isn't offering enough for their car, they can take the issue to the finance ombudsman. Of course they should have had gap insurance.

SBTLove I'm not sure I'll have to ask her tomorrow. She just said its a write off but didn't say if that was what they had said or what the insurance had said.

Her car is a mess but I was sceptical too about the extent of the damage to the other car. I'll question her further in the morning.

Thanks guys. In any case (just to be clear) I would have found the cash to repay the loan without extorting it from 70 year olds!

I still have the car and the finance but I’m pretty sure the big depreciation risk has passed (and I barely drive anywhere now due to pesky lockdown)

Theyre totally out of order. Id be blocking their number on my Mums phone. The accident may have been her fault but its not her fault theyre not adequately insured. Definitely inform the insurance company of their harassment

Disclaimer - I am not an expert and am happy to be corrected.

I think sounds like both parties are at fault here? Don’t get me wrong, it may not be determined that each party is 50/50 at fault, but I think the other driver partially contributed to the accident by pulling off without appropriately analysing the road ahead - they could have easily driven into the car travelling in the opposite direction instead as they were being impatient. Therefore your mum may not be 100% liable for all of their costs.

OP my car was written off in a horrendous accident which wasn't my fault. My car was 14 months old and like an idiot I only had taken out 12 months gap insurance. I was "lucky" in that the payout was enough to cover my outstanding finance plus £1k. The fact I only had 1k to put towards my new car plus I had to get finance at a higher rate than I had on the written off car was my problem. Your mum does not owe these people anything. I now have 3 years gap insurance on my new car

I agree that it doesn't sound 100% your Mam's fault. If the insurance companies feel the same way will the other people get a lower payout?