Insurance claim on lease vehicle

  • Iamnegan's Avatar
    Hello everyone,

    I recently wrote off my car in an accident. The vehicle was a 3 year PCH lease with no option to buy at the end and the accident was 11 months
    into my contract. I put down an initial 3.5k deposit and I was paying £433 per month.

    The insurance company valued the car at around £28k which I accepted as fair, however the finance company only wanted £23.5k which I assumed reflected their valuation
    minus the amount I had already paid off(£3.5k + 11x£433 = £8356)

    The insurance company paid the £23.5 requested by the lease company (minus my £700 excess)and then told me the matter was closed as I don't own the vehicle and therefore
    not entitled to any of the difference.

    While that makes sense to me I just want to check if that is actually true. I probably would not have accepted the figure and pushed for repairs had I known
    I would be left short, considering I need to put another initial payment down for a new car if I want to lease another vehicle again. I'm also assuming the premium
    I was charged by my insurance company reflected the amount I would receive if my vehicle was written off.

    Do I have any claim to the £5k difference or not?

  • 2 Replies

  • Drivingforfun's Avatar
    Sorry, I don’t know but am interested to hear the answer…

    I DO know that if the payout was insufficient, you’d be liable for the difference…so why shouldn’t the rules be the same when you stand to benefit??

    Seems like a case of moving the goalposts, have their cake and eat it, etc ….
  • Beelzebub's Avatar
    OP, the car wasn't yours, you were just renting it. The owner has been paid, and seems happy.