Just saw Rip Off Britain on the BBC this morning and they ran a piece about insurance write offs not showing on the register.
Apparently insurers have to notify the relevant authorities when they write a car off with the appropriate rating (e.g. structural) but there is no timescale.
There was one example of a car written off 9 years ago that wasn't on the register so the RAC cleared it. When the lady went back to claim under their guaranty the RAC backing told her to go away.
Several examples, including nationwide dealers selling written off cars even though they told the buyers that they never do, and the cars not being on the register.
The rules need to change to ensure that write off details are recorded promptly.
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It also used to be the case that large fleets would self insure own vehicle damage, or have such a large excess that they took the risk themselves. I’m not sure how prevalent this is nowadays, and in this situation I have no idea what the reporting obligations are. I can well imagine you could find vehicles that’s have been seriously damaged and then repaired that aren’t recorded anywhere, and weren’t required to be!
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>>It also used to be the case that large fleets would self insure own vehicle damage
IIRC the GPO fleet never carried insurance as they were regarded as 'royal' vehicles like the monarchy's. The GPO and other large fleets then had to deposit a substantial sum of money somewhere, exactly the same as any other insurance company. I don't know if the situation's changed.
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Some government departments still self insure. Not sure if they have to leave a deposit anywhere.
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...under the "Motor Vehicles (Third Party Risks Deposits) Regulations 1992" anyone can meet the third-party requirements of the Road Traffic Act (the basic legal motor insurance requirement) by depositing a bond of £500,000 with The Accountant General.
No special status is required for this, though it is certainly true that Royal Mail/GPO vehicles were/are covered under these arrangements.
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Am sure there have been posts on here before with links to companies who sell accident damaged cars.
Many of them were listed as not recorded even though there was extensive damage.
Never could understand why !!
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I don't doubt the gist of the tale but in the case of "Several examples, including nationwide dealers selling written off cars even though they told the buyers that they never do, and the cars not being on the register." how would the dealer know the cars had been written off if they bought them from someone who'd done them up?
Personally I would doubt it's a particularly widespread problem, more a bit of sensational scaremongering...
And anyway - just because a car has been written off for insurance purposes doesn't mean it's unsafe. Could just be beyond economic repair (for the insurer).
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>> ...under the "Motor Vehicles (Third Party Risks Deposits) Regulations 1992" anyone can meet the third-party
>> requirements of the Road Traffic Act (the basic legal motor insurance requirement) by depositing a
>> bond of £500,000 with The Accountant General.
>>
>> No special status is required for this, though it is certainly true that Royal Mail/GPO
>> vehicles were/are covered under these arrangements.
The 'Accountant General' is the Accountant General of the Superior Courts, formerly the Court Funds Office. As an alternative to paying for insurance you pay your half million into court.
These days half a million looks a bit short. If you cause an accident that leaves a promising professional short a lifetime's earnings but needing a lifetime's nursing care £500k won't scratch the surface.
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I worked for 3 companies that insured their company cars 3rd party only - not even Fire & Theft!
If a car was in the write-off category they sold it off. With no insurance history it could be repaired & back on the road in weeks.
The last employer were paying some £1200 for 3rd party only cover - that was 13 years ago - they had some 4,000 cars on leases. Many employees abused their cars & we are not talking about Fiestas / Corsas 2&3 litre prestige models- bumped, bashed, bald tyres, low oil, failing to get car serviced.
I know that as some of my colleagues took on re-hires of people who had left - Omega (2.5 / 3 litre?) - 18 mths old, 47K, no service history, short dipstick, bumped & bashed. bald tyres - some £3,000+ to fix it up for another 18 mths use - before & after appearance was astounding.
I ran my own car, £300 per month + 45p per mile, then 25p after 10K. In 5 years they bought my car twice!
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Write Offs - Not Showing on Register - PeterS
