Claiming on old cars
Understand, be aware and adhere to the security measures, stated in the policy when purchasing Car Insurance. Keep all documentation to confirm non-standard security items that have been added to your car, such as a gear lock, alarm or tracking device. In the incident of your motor being stolen it could result in the rejection of a claim if you fail to meet the policy requirements.Following the right steps in the case of your car being stolen is equally crucial. All Insurers required that on finding out that your vehicle has been stolen it be reported to the cops right away. As owner of the vehicle the onus is on you to avoid more loss and assist in the recovery of the motor.A theft case must be opened and file number obtained from the police. Failure to do so could jeopardize your right to claim from the insurance company and could be construed as committing fraud. If you don’t inform this to the police then it will just greaten the possibility that the burglars will escape by giving them more time to get away with your car.If the motor was stolen from a parking lot where there is security, report it to the security office so that they can certify that security was in place.Demand for written confirmation or this notification and then inform your insurer at once. Provide them with the appropriate documents for non-standard security items and if the car was driven by any other individual than the insured at the time of the theft supply them with a certified copy of the driver‚Äôs license and identity documentation of the driver.Inform the appropriate financial institution if your motor is subject to a hire purchase or lease. Define the outstanding loan amount and bear in mind that you still have an responsibility to keep up the monthly repayments both on your car debt and your insurance policy until your claim has been settled in full.If the vehicle is not recovered within a reasonable time and the insurance company compensates you for your loss you are no longer the owner of the stolen car. If the car was dependent to a Hire Purchase or Installment Sale, the Insurers would have noted their interests on the policy and would have reconciled any outstanding debt before paying out the balance to you.If the car is recovered subsequent to your clam being paid then the vehicle must be handed over to the Insurance Company and the stolen motor will now be the property of the insurance company. If you do not do this then it is considered as fraud and a criminal offense.Most of the insurers usually give the insured the decision to buy the stolen vehicle back when it is recovered. You should be conscious of the circumstances that could significantly impact the value of the recovered vehicle if you are thinking in going for this option.The vehicle would have been scrapped before the insurance company paid your claim. The motor will need to be registered as a Code 3 car and identified as a Built Up vehicle on the registration certificate if it has to be re-selled. The police will assign a new VIN number beginning with AAPV if the VIN number has been meddled with. If you purchase back your motor, you must insurance that you get a substantial discount on the market value as no dealer will pay the full market price for a motor. Remember to insure the re-purchased car at the price that you paid to purchase it from the insurers to avoid over-insuring this asset.
