Hi Rita,

We’re assuming you mean the car has been crashed and written off. In that instance, you will get a valuation from your insurance company for the vehicle – this will normally be what it was worth immediately prior to the accident. If you’ve been sticking to your allocated mileage limit as agreed under the PCP, then the insurance company’s valuation should be more than the remainder of the balance on your PCP, so you should be OK. However, it might not leave you much money to put down on a new car and that’s where it will start to become a legal nightmare, to be honest. Good luck with the next steps from here – as long as you’re not in ‘negative equity’ on the car (as in, the insurance valuation is less than the remainder of the PCP balance), you should at least not be out of pocket.