Does your son have cover for a hire car attached to his insurance?
If the car is being repaired, do you know when it is going to be repaired by?
Has there been an estimate in this respect?
Do you know how many miles have been put on it?
Who is the insurer?
If you are simply a named driver on a car which has been stolen, it will not affect your other insurances nor will you have to declare it unless the question is specifically asked, in which case you do.
The last time I dealt with that company, if it is the same company, their administration wasn’t particularly brilliant.
If the car was written off in an accident you should expect to be paid out within a few weeks. If however it stolen, they have to allow a reasonable period of time to see whether it’s going to reappear. That is about one month and unfortunately, (or fortunately, depending on which way you look at it) the car has now reappeared.
You say that your son gets charged 22p for every mile over his allowance. Is this a lease car or lease purchase or some other kind of scheme?
The value of the car is the pre-incident value. It is the price that would be paid by a willing buyer willing seller. It is not retail and it is not trade. It is a price somewhere in between.
It may be that the finance outstanding in the event that the vehicle was written off would be more than the value of the car. That is not uncommon. In cases like that, what borrowers are advised to do is to take out what is known as Gap Insurance that would pay out the difference between the valuation and the finance outstanding.
If the vehicle has not been written off, then obviously that is not necessary. If you are of the opinion that the value that the insurance company of put on the car is too low, then you are at liberty to raise a complaint (your Sunnis) and ultimately refer the matter to the Financial Ombudsman.
It would appear that the value of the car is not relevant here because they are going to repair it. What is relevant is the value of the car post repair if it is anything less than perfect or it is on the register anywhere as stolen recovered. If it is on the register as stolen recovered, then your son would be entitled to the value of the car rather than the vehicle because its value would be substantially reduced if it is recorded anywhere. Do bear in mind that the value of the car for insurance purposes may be, as I’ve already stated, less than the finance outstanding.
If ultimately, the insurance company will not play ball and come up with a satisfactory solution, you have to make a formal complaint and when that complaint system is exhausted, refer the matter to the Financial Ombudsman. Unfortunately, the Financial Ombudsman service is not particularly quick.
He is entitled to have the vehicle put back into the state it was preaccident. That would include clutch damage and engine damage but you would have to prove that they were damaged. The warranty which applies to the car is the same warranty which applied to it preaccident.
I know that you don’t want the car back because it will have a horrible feeling about it not only over the fact that it has been repaired substantially it seems but also because someone else has been driving it. Unfortunately, it doesn’t work like that. Sorry.
Can I clarify anything for you?
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You have to give the insurance company 8 weeks from making the complaint, to deal with it, before the Financial Ombudsman will get involved. In effect, you have to have exhausted the complaints procedure of the insurance company. There is no harm however in writing to the Ombudsman before that because the process is not very quick.