Insurance company have sold My car without my consent / pay out? what can i do?

Question

My car has been written off by the insurance company back in January and i have not still been paid out due to me not agreeing with the offer. They have submitted me evidence justifying their offer but this was current market value and not prior. I have referred this matter to the finanical services ombudsman who are still investigating (long wait as they go by order of complaints received).

I have just found out the insurance company have sold my car off to a salvage company who have sold it to another individual.

What can i do? what is my legal standing point? can i claim against the insurance company? can i claim my car back? I am still in receipt of the V5, keys, service booklet and receipts for the car.

I have not signed over ownership or given the insurance company concent to sell the car. I have assumed to date that the car is in storage at the repair garage. I have still to recieve full agreed final settlement for the car from the insurance company. HELP!!!!

Answer 1

Once the car is ruled totaled,  it becomes the insurance company's car.  This is per the signed agreement you have with them,  your insurance policy.

You are disputing the value of the car when it was wrecked.  The insurance company might be a tad low, but they will not be off my much.  Make them a counter offer,  close to their offer.

The value is pretty straight to determine.  It will be the average of KBB and Edmonds for your year car and milage using the average of private party and wholesale value.

If you do not accept their offer or negotiate one,  it could be years and years before you see a penny.

Answer 2

Have you got legal expenses cover on your insurance? If you have ring them and tell them whats going on and see what they say,they might be able to appoint you a solicitor/ legal representative to take the insurance company to court or failing that go to Citizens Advice Bureaus and see what they suggest

Good Luck

Answer 3

In order to either scrap the car or sell it on the company needs to have ownership. You could therefore take the case to the police as theft. Also you could have the vehicle removed from the new owner as would be done in the case of a stolen car.

Answer 4

i used to work in the salvage car trade...the car will have been recoverd to an approved salvage agent for storage.they remain,untouched TILL the claim is setteled THEN the salvage agent owns the car and are allowed to sell it....somtimes,depending on what the cars worth, they sell it without the insurance is payed out,,there not supposed to but it does happen...so it may be the agents fault rather than the insurance companys....please update the questuion and let us know how u get on...

Answer 5

I take it you're in the UK. On the face of it, from what you say they have committed an illegal act in selling something that is not their property UNLESS there is something in the terms & conditions you accepted when taking out the cover which allows this.  Or unless you've signed something along the way which passes ownership to them.

There's a difference between the registered keeper and the legal owner in UK law, so possession of the V5 doesn't necessarily mean much.  You certainly need advice, so take every scrap of paper you have, along with notes of any phone calls, when you go and see your solicitor.

Answer 6

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Answer 7

You need to speak to a lawyer. However, you need also to bear in mind that you may end up liable for storage fees. It may be prudent to get a FULL copy of the terms and conditions under which your Insurance company acts BEFORE you take any other steps .

Answer 8

Once there is a claim made on a car insured by you, the car effectively becomes property of the insurance company, regardless of how long it takes them to settle with you.

You don't need to sign it over to them.

Your disagreement is now with the amount of money offered to you by your insurance company, your car (or not any more) is out of the picture.

Be very careful rejecting their offer, they can afford to string this out a lot longer than you can, and if you disagree with their market value, you'll need some concrete proof to back it up (pictures, bills, purchase invoice, etc)

But good luck!

Answer 9

I think you might want to consult a laywer.  Sounds like your insurance is jerking around with you .  I dislike insurance companies too!

Answer 10

Your actually in a good spot (believe it or not). They illegally sold your property. If no agreement has been made and you haven't signed it over you still legally own the car. (remember I'm not a professional and don't know what the laws are in your state) If it were me I'd contact the insurance company and set up a meeting face to face with the highest ranking manager. Tell them what your situation is, and if it's not corrected you will file grievances with the Better Business burrow, Local law enforcement as well as a lawsuit for the car and any missed work, ect... Also ask how they sold your car without the title or any proof of ownership. Make sure they didn't forge a title to whom ever bought it. That's a federal crime called forgery, and can get them in a Heep of trouble. Usually they will settle, if not I would go to court and file a monetary claim, and if so choose, a criminal grievance.

That's what I would do.

Answer 11

Hmm.. this is a new one.

First off- why dont you call them and ask how they were legally allowed to do this?  They make quote something thats in your policy that allows them to do so.  Maybe your lienholder (who is really the owner of the vehicle) allowed them to do it?

Second- did you sign any paperwork?  Such as a power of attorney?

As an adjuster I would never authorize selling of someones salvage until a settlement was reached.. but there may be some reason they were allowed to.

Again, simply ASK them how they were able to do this without your permission.. if you have a lienholder it is very likely they gave your company permission as they are the owner.

Also-  it is your duty to "mitigate your damages" (this has nothing to do with your question.. just wanted to warn you)   Just b/c you dont agree with the offer does not mean your company is responsible to pay storage fees for eternity on your vehicle.  If there are any storage fees after a reasonable amount of time (probably like two weeks after the loss) they have ever right to make you pay them.. just wanted to let you know!

Answer 12

It is theft. Complain to the Police. The car still belongs to you and you have the paperwork to prove it.