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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Car insurance pay out

51 replies

ImSoConfusedAboutItAll · 21/02/2023 18:58

I had a car accident in December which was non fault and immediately accepted as such by third party. My car was written off and I was called quite quickly and told the amount I would be receiving for my car. I've got a courtesy car at the moment which is all fine.

However I am STILL waiting to be sent the money for my written off car. The insurance company say they are still waiting for a cheque from third party! Is this normal? Why is it taking so long? Anyone in the business or have experience of this recently? As I say I'm ok as I have my courtesy car but I am told that I need to buy a new car within 7 days of receiving the money otherwise the third party can argue that I didn't need the courtesy car and refuse to pay the costs.

My main question is why is it taking so long to settle?

OP posts:
PrehistoricGarbageTruck · 21/02/2023 19:01

Mine took about 10 months to get the cash. Different story each time from the insurers (Hastings) - first that the guilty party was disputing it, then "it's going into your account this week" and on and on. There was another no-fault party involved and they got theirs straight away so I just think it's one of those things no-one prioritises.... sorry!

BrightYellowDaffodil · 21/02/2023 19:03

Lodge a formal complaint with them, making it clear you will refer the matter to the Insurance Ombudsman unless they pay up.

Magenta65 · 21/02/2023 19:05

That’s mental! My DP Has had 2 accidents, not his fault, paid out within a week. You really need to chase it, be a pain in the area and call all the time, if they say money will be there in x amount of days and it’s not you ring up the same day and chase. Escalate it! Tbh your insurance should pay you out and then recoup the cost from the third party. Worked in insurance for quite a few years, unless you make yourself known you’ll go back to the bottom of the pile until your case is picked up again. I’d also potentially look to make complaints, your insurance should be causing this as a priority

Original poster
ImSoConfusedAboutItAll · 21/02/2023 19:08

I feel like them making me wait as long as it takes but then stipulating that I have to have purchased a car within 7 days isn't on as well?

OP posts:
Original poster
ImSoConfusedAboutItAll · 21/02/2023 19:09

@PrehistoricGarbageTruck when was that if you don't mind me asking? Did you have a courtesy car all that time?

OP posts:
ChefsSalad · 21/02/2023 19:32

Sounds like you're not in a courtesy car but credit hire instead.

Assuming you're fully comp, your insurer should be paying out then waiting for a payment from the third party insurer. You'll have to pay your excess but should get this back. This can take (literally) months, so call your insurer and politely kick off and get them to pull their finger out.

PrehistoricGarbageTruck · 21/02/2023 19:37

Oh yes sorry I was in a slightly different situation - shouldn't have posted really - it was the excess that took that long to get back. The insurers did pay the garage directly to repair the car, and that took ages too (said it might be written off too). Yes they should be getting on with it to get your cheque - and 7 days to find a car is ridiculous, what if you have specific requirements?

Sorry for confusing things OP.

mycatsanutter · 21/02/2023 19:39

Who are you claiming off ? Your insurer or the third party insurer ? If it's your own you should have the money within days of the amount being agreed

Original poster
ImSoConfusedAboutItAll · 21/02/2023 20:12

So it's an accident management company dealing with it as it's non fault. This was my mistake as I called the wrong bloody number to report the accident so without me realising it was actually not my own insurance dealing with it. I've since found out this is all totally fine and legit but I guess that's why I haven't been paid upfront and insurance claim it back as I haven't gone through my insurance. This will probably take months then if they won't pay me the money until they get the cheque from the third party.

I never knew until this that accident management companies even existed. I was in such a panic when it happened late at night with the kids in the car that I phoned who I thought was my insurance but it was them!

OP posts:
ChefsSalad · 21/02/2023 20:18

Which company? Have you got any of the documents you signed for the car you've got?

AdInfinitum12 · 21/02/2023 20:21

Are you sure it's a courtesy car and not a credit hire agreement? The cost of the latter can be claimed back from you if your insurance company either can't recoup the money from the other side or if they dispute and a court deems the charges to be unreasonable.

mycatsanutter · 21/02/2023 20:21

Have you asked the accident management company what the delay is if the third party have admitted liability ?

coffeecupsandwaxmelts · 21/02/2023 20:27

Are you sure it's a courtesy car and not a hire car that you might have to pay for?

Original poster
ImSoConfusedAboutItAll · 21/02/2023 20:40

I think it is a credit hire agreement yes and I've got it in writing that a solicitor is claiming the money back for it from third party as it has 100% been accepted as non fault.

The answer to why it is taking so long is simply that all insurers have a back log currently they've said. I just wondered if this is normal and how long I should expect it all to take?

OP posts:
ChefsSalad · 21/02/2023 20:46

This isn't normal and they haven't been entirely truthful with you about the hire. You are legally liable. Most of the time the hire company will accept a settlement, but they won't always.

ChefsSalad · 21/02/2023 20:47

Your car should have been valued within a couple of days. Then, assuming the value is agreed, you should receive a BACS almost immediately, or a cheque within a couple of days, minus your excess.

mycatsanutter · 21/02/2023 20:50

@ImSoConfusedAboutItAll if an amount is agreed and they have your bank details there really shouldn't be any delay . Where is your car now ?

Blablablanamechangagain · 21/02/2023 20:55

Mine was "settled" as in car declared a WO and a figure issued. No other party involvement. Fully comp.

Took 7 months of me constantly chasing, harassing and complaining to get my payment.

All whilst paying the old cars finance and a HP for a new car as I didn't qualify for a courtesy car as the car was written off.

Honestly, first ever claim and I hope to God I never have to go through it again.

Original poster
ImSoConfusedAboutItAll · 21/02/2023 21:12

@ChefsSalad my car was valued within a few days back in December. I was told I'd be sent a cheque via the accident management company when they had received it from the third party. I do believe it is all above board it's just taking so long. I guess if I'd gone through my own insurance they'd have paid me and claimed it back from the third party and I'd be non the wiser. Because I'm waiting for the third party to send the cheque myself it could take a lot longer?

OP posts:
Original poster
ImSoConfusedAboutItAll · 21/02/2023 21:14

@Blablablanamechangagain Oh blimey that's awful. How long ago was this? Why did it take so long?

OP posts:
ChefsSalad · 21/02/2023 21:28

I'd honestly contact my insurer at this point and see if I could claim off my own policy without penalty. Don't get me wrong, there's the occasional delayed-for-no-discernible-reason claim, but it is very unusual. I've always found delays are down to things like your claim handler not sending out requested documents, or issues on the third party side such as withdrawal of indemnity.

ChefsSalad · 21/02/2023 21:30

Put it this way, why would an insurer pay fortunes for you to be in hire when they could just settle the claim? This is something that any insurer will try to avoid on a write off.

Original poster
ImSoConfusedAboutItAll · 21/02/2023 21:31

If I switched to my insurance at this point I would definitely have to pay the hire car costs which by now would be thousands surely? The accident management company wouldn't be able to claim the cost of that back from third party if I cancelled my claim at this point so not an option.

OP posts:
Original poster
ImSoConfusedAboutItAll · 21/02/2023 21:33

I spoke to the solicitors myself and they've confirmed it would never come back to me to pay the costs because its been accepted as non fault by third party so I do agree that it would be in their interest to hurry up and send the cheque as they'll now have a lot more to pay

OP posts:
Blablablanamechangagain · 21/02/2023 21:41

ImSoConfusedAboutItAll · 21/02/2023 21:14

@Blablablanamechangagain Oh blimey that's awful. How long ago was this? Why did it take so long?

July/August just gone I got the payout.
I honestly never got a reason as to the delays, just passed around department to department with promises of "it will be processed".