Car potential write off - are we screwed??

[Fudgingit85]

Our PCP car was stolen but recovered. I’m waiting to hear if the insurers will cover the repair bill- but they’ve told me it’s £15k!!!
So I’m thinking it’s very likely to be written off.

We don’t have gap insurance (I know, I know) and are about 2.5 years into the finance deal. I know there’s a chance that any payout won’t cover the remaining finance as it’ll be based on the car’s value not the outstanding finance. But what I’m worried about is - will we have to cover the balloon payment too?? Because the deal is you either hand back the car at the end of the term or pay the balloon payment. So if there’s no car to hand back…??

I guess that you will have to keep up with the payments then the current value of the write off will go against the balloon payment and you will have to pay the difference.

Yes, the finance company will want the full cost of the car which the balloon would include. So whatever the insurance pays out will go to the finance company and you will have pay the difference. Do you know what the damage is?

Is it cosmetic damage? would the car pass an mot?

I had a car written off years ago, the insurance company paid me and allowed me to keep the car. I got the work done cheap and carried on n driving it for several years.

This would give you the car to drive whilst you carry on with the payments.

Thanks, all. Looks like I’m about to take a hefty hit then.

I’m not entirely sure of the full damage but lots of parts were stolen.

@happinessischocolate sorry if I’m being dense but I don’t understand - why would the insurance company pay you and allow you to keep it? Surely it’s cheaper for them to fix the car?

Insurance companies repair on the basis of getting it back to how it was before it was stolen with new parts. For example if you have a side impact and the doors are damaged, they quote for new doors, which are then painted to the colour and new seat, interior trim etc. However it could be repaired with second hand doors, leaving the interior trim cracked and a second hand seat. That might cost a few hundred, the insurance on would cost thousands.

Exactly as @ItWearsTheBatteriesOut says you get it repaired for cheap. An insurance company will send it to a dealership auto repair which charges hundreds per hour labour and uses new genuine parts.

Someone went into the back of me, the insurance company wrote my car off as too expensive to repair, but let me keep it and the local mechanic who is my mate just pulled hatchback out enough for it to close properly and it was fine.

That's why you get I think it's D category insurance cars, the car has previously been written off and is no longer worth the normal selling value of that age car.

@happinessischocolate how does it affect future insurance stuff, premiums etc? I have wondered this in the past.

Thanks everyone.

Feeling slightly sick at how much this might cost me.

Does anyone have an idea what % value of the car would be considered a write off? ie is it that if the repairs are more than say 75% off the car’s value, that’s write-off territory or does it vary from insurer to insurer?

Im not sure, but I would have thought it should be pretty much 100% of the car's current value.

Check Parker's car valuation, that's the price that dealerships use, and probably insurance companies too.

If your car is valued at £10k then the insurance have to pay £10k whether it's in repairs or written off and they give you the money.

I was run into the back of whilst waiting to turn into a car park. (He was going at 20mph still!!)
The damage didn't look too bad but the floor pan was bent. The car was a 2 and a half year old Golf. The estimated repair cost was £12000 and the cars value £19000. It was written off.

We had a car that was written off , but we kept and repaired . After repair you have to get it seen at a government place so they can check it’s road worthy etc and then the insurance etc was no different to how it had been previously . I’m not sure what happens if you are in another accident as ours stayed with us until we scrapped him .

Overall now I’m just feeling massively pissed off that the only reason I’m having this conversation is because of some thieving shits.

Thanks for all the suggestions and advice, though🙂

Insurers wrote off cars if the damage will cost more than around 60% of the per accident value

Yeah….it’s a write off…

What does that mean, are you covered? I hope so.

Was it a keyless theft?

I have insurance but not gap insurance. So just waiting to see how much the insurers will pay out.

Yes, it was a keyless theft.