Car stolen on test drive

[nakedscientist]

Two days ago, my cousin had her car stolen by a private buyer. Her DH was in the car, with it started when he jumped out to click the bonnet into place. The guy rapidly reversed and despite cousins DH running after the car, he got away. The police have been informed but don't seem to hold out much hope. The car was worth 6k, they have cancelled their holiday and are devastated.
Will the insurance refuse to pay? Does anyone have experience of this or advice?

The insurance may refuse to pay, but it’s hard to tell.

Unless you are a car dealer manque, selling six grand cars for cash off your drive is for the brave. Mostly because buying six grand cars for cash off drives is a pretty specialist undertaking, and the water is full of sharks. I have bought and sold cars for cash for good money (three grand twenty five years ago, which is comparable to six now) but was very careful and had people with me at both ends of the transaction.

Whether the insurers will pay depends on the exclusions on the policy. Most insurers won't cover theft if the keys were left in or around the car. However, in some circumstances the insurer will be required to pay regardless of the exclusion. If they do refuse your cousin should refer the matter to the Financial Ombudsman. They can order the insurer to pay if they think refusing to pay is unfair.

Thanks bridge I have passed your advice on. They're with LV if that makes any difference.

Popping the bonnet on a test drive so the passenger had to get out of the car may have saved your cousin's DH from far worse methods to get the car.

With regards to claiming on the insurance, only LV can answer that so I would get them to make a claim ASAP

Many thanks to you cuboid, Prh4 and Persian.

LV have paid up in full, so what a relief!

persian you are spot on, that's what the police said, these thieves are ruthless, apparently.

Excellent news.

Good to hear - and well done LV.

Good news. As it happens one of our cars is insured with LV (not their direct operation, but I suspect the same ultimate underwriting) so I shall take that decision as a point in their favour. They probably could have toughed it out and refused the claim on the basis of the policy wording, although I hope the Ombudsman would have sided with the claimant.

TBH if LV had not paid out and the story had got in the papers, next time someone like your cousin's DH might fight for their car and end up seriously injured or worse.