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My friends car has been burnt out?
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My friends car has been burnt out?

what type of cover does she need? she has got fully comprehensive but she has been told that because the cars on finance they will only pay for the value of the car because shes not got gap insurance? therefore shes being left with 10,000 debt is this true?


    




david k
Unfortunately it seems your friend will end up with the debt as insurance companies only ever pay out the current value of the car and NOT the showroom price which your friend has paid.


GAVIN E
Yes. They will only pay the CURRENT value of the car.


J G
If she's daft enough to have a car worth £10,000 less than she paid for it, I'm afraid it serves her right.
And of course, she'll have to pay the finance company the outstanding money as soon as the insurers settle.


D.D
Rating
The insurance will only pay the book price of the car .
Any outstanding Interest payments will have to be paid by your friend.


Scott H
The insurance company doesn't care how much you paid for your car or how much you owe on it. They will only pay the actual value of the vehicle. That's why they sell gap insurance. And your friend still has to pay the $10,000 outstanding loan amount.


Pearl888
Rating
Yes unfortunately this is true..with some insurers if the car is 12months old or less they may pay the whole value of the car off but only if you are the 1st registered owner and keeper on the log book..this is not always the case though as the garage very often registers them first.It is worth looking into though


Molly J
Rating
Yes it is true.


WENDEL HOMES
Rating
Another good reason for the whole insurance scam to be taken under the states umbrella where fairness wipes ay tears.





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