inequality - poor people cant seem to catch a break

[Ceci03]

Am thinking about my friend and her stolen car - as she doesn't have any money she bought the car on finance. They have said she is still eligible for the 3 years of payments even if insurance does not pay out, which they may not. A more well off person would have taken a bank loan or bought a car out straight. If she had some savings she could try and buy another car. She is spending money on taxis bringing her dds taxis to and from school. It just goes on and on. It's very hard to pull yourself out of these situations isnt it.

Yes, that will invalidate her insurance, as it was her negligence that allowed the theft to happen.

This scenario isn't really about being poor or unfortunate.

It's a shame for her, but if your car is stolen because you left the keys out, then whether you're rich or poor your insurance very likely won't pay out.

This is why a lot of places recommend gap insurance when taking out finance. If the car gets written off and the car insurance company value it at less than the outstanding amount of finance, gap insurance will cover the difference

Car crime in wealthier areas isn't necessarily that low.

I know there are several areas like this which are being deliberately targeted because of higher value cars. They literally go from street to street checking doors on cars to see if they are unlocked.

The local PCSOs stopped a friend of mine out for an early morning walk (he couldn't sleep) precisely because there'd be a big spat of them and they'd had a report of someone in the area trying it that night. (Friend was able to prove he was out exercising not being a dodgy fucker).

I would suggest that the person responsible for this crime if the thief, not the poor woman who left a key in the door. Unless you want to argue that putting yourself in a situation that makes you more liable to be a victim of a crime makes you in some way responsible for that crime.

The local police have put out warnings in the area about the issue because it was so regular and so many locals have been careless with car security.

Anyone who says they haven't ever done this is a liar, we're all human

A fair amount of money to one person and to the OP's friend could be very different though....

And your instance company will ask as part of your theft claim for both sets of your car keys, your main key and the spare.

If you only provide 1 set (the spare) that raises a flag that you may have left your key in the car.

Insurance companies send the keys to a forensic company who can tell them how often that key was used and how recently.

If you only send them the spare, and the forensics confirm that the key has not been used for 4 months, they will conclude that this is not your main key, and therefore the main key was used to steal the car = policyholder negligence.

I worked in theft and total loss for many years.

That's a strange way of seeing the world. No way would I be able to afford a car on finance. I bough a cheap old car with my savings which would have been a lot less a month than finance or loan repayments.

But you were in a position to actually save in the first place, right? This OP's friend, for whatever reason wasn't able to.

It's worth mentioning this again as it's winter.

If you want to defrost/warm up your car in the morning, and you leave it running on your driveway unattended with the key in, this invalidates your insurance for theft. This is also classed as negligence and you would not be covered.

Sounds obvious but it still happens.

Honestly OP I think you’re generally right, but this is a terrible example.

A good example is: your washing machine breaks. Can you afford £500 cash for a new one, or do you have to take out a payday loan to buy one, which is going to cost you twice as much in the long run because of the interest on it. That’s how people get deeper and deeper in to financial trouble.

I agree, I think if someone takes something that does not belong to them regardless of the 'opportunity' it is not the victims fault! Of course we all need to take measures to protect ourselves from suck arseholes but doesn't mean they get to take our thing! Recently enough a woman was walking in front of me her phone wasn't in her pocket properly, it fell out, I picked it up and called after her and gave it back. I didn't think oh well she didn't look after it properly it's mine now!

OP it's shitty for your friend. But she would still have to pay back a bank loan. So I don't think it is really a rich/ poor inequality thing I think it's just a crap thing to have happened.

Was she not assessed for affordability before getting a car on finance because if she was deemed suitable for a loan, I don't see why she wouldn't be able to save the same amount a month to get a cheap car.
If I was poor, I am not sure I would be taking a taxi either. I would use a bus as, indeed, I have done for most of my life.

That’s tough. I feel sorry for her what a costly mistake. But it’s nothing to do with being poor/low income.

it would be the same outcome for a wealthy person too.

c

See this is part of it for me tbh.

We've never put ourselves in a position of taking on a huge loan for a car because of various risks involved.

It's effectively living beyond your means.

Yep, I'm.confused as to why car loans seem as normal as mortgages these days. Disclaimer, I have neither ... but your house is less likely to fall down etc than your car is to break or get nicked. Particularly if you can't look after your keys.

People's expecations of what the are entitled to has massively changed. There is little market for second hand. People want what they want NOW.

Clearly insurance companies disagree with your opinion.

the car theft theft is a red herring here. it doesnt matter what the loan or hire purchase was for and doesnt matter if you are rich and poor.

Say you bought a car for £10k and it was stolen

if you paid upfront in cash you have lost 10k
if you took out a bank loan you still have to pay that back
if you took out a lease you still have to pay it back

doesnt matter how you paid for the car you still have to pay for it!

Ah yes insurance companies. Well known as bastions of ethical behaviour. Sort of skirts around the issue though. Unless you really are arguing that putting yourself in a situation that makes you more liable to be a victim of a crime makes you in some way responsible for that crime.

If you buy something that isnt yours you need to take care of it. If you dont you have to think about the consequences of your carelessness. Yes, she had a young child in the mix but that is honestly irrelevant.

@Catza yes she would happily get the bus and does if she is on her own. Unfortunately one of her dds has autism and the bus is unsuitable for her which is why she got a car in the first place

Anyone who lives within their means and pays off their cards each month can accrue rewards points.

True in some situations but in this case it was a necessity to have a car due to her child's special needs and she picked the cheapest she could find. Obviously buying on car finance is usually more expensive with interest and balloon payment. But yes I accept that stolen cars have to be paid for. Is that not why we pay insurance though to help us if we make a mistake. Like what's the difference between mistakenly leaving your key outside, and mistakenly crashing into someone by mistake? Yes obviously my example is not very good.