If the car which i have was to get burnt out would my insurance company pay the hp company off. ? -

on third party fire and theft I am pretty sure that you would only get their opinion of market value, so if your HP payments are more than this, you would have a shortfall. Depends who starts the fire. They will pay you its current market value and if you push them the current market value for for you to replace it from a dealer. This may or may not be enough to pay off your HP debt but that is your problem not the insurers. Conclusion don't set fire to it! It depends on the precise wording of your policy but it would be unusual to get anything more than the market (that is replacement) value. Incidentally they wouldn't pay anything if they did not accept that the fire was caused by an insured risk. yes,because the car is thiers till you pay for it, that is why you have to take full cover out to get the hp regards x kitti x your not going consider doing this your self,you could land yourself in prison,insurance company's will pay the open market value minus any excess,if you owe more then the value of your car you will lose out Whatever u owe the HP company is taken out of the insurance value of the car. The insurance company pay of the HP and u get what is left over. So if your car is valued at ￡4000 e.g And u still owe ￡2000 of HP Insurance company pays the ￡2000 outta the ￡4000 so you get ￡2000. Insurance companies are pretty good at spotting insurance fraud (which is a crime)! they will pay the policyholder the value of the car, usually market value. Then you would need to pay the hp company. You would get the current book value of your car from the insurer. If you are stuck with repayments to the HP you may be able to give them the car back and be free of the debt. Check your HP terms and conditions Did you buy "loan payoff" coverage from them? If not, they'll only pay the actual cash value, and ONLY if you aren't responsible for the fire. If you deliberately set the fire, or have it set, they don't pay out at all. If you owe more on the car than it's worth, they'd only pay out cash value. If the fire is arson, they're going to stall a very, very long time before paying, as they'll suspect YOU of setting the fire. No, they would pay you the current market value of your car. It would be up to you if you wanted to pay off your HP using the money they pay out.