Cancellation Of Car Insurance During A Claim

[speno 239 2 Cars]

Hello a friend's son wrote his car off ( his fault )

He crashed into a stationary vehicle in his corsa (value of £1000) was scrapped , he wrote the other car of ( value about 2500)

He had third party insurance so he will not get any money back for his corsa

He only took his car insurance out 6 days before the accident

which was 2 months ago now

but the insurance company will not let him cancel his policy (he pays £200 a month )

the claim is not settled

 

Basically has any body else been in this situation ?

 

 

P.s. he walks everywhere now but still bumps into lamp posts ha ha

 

Thanks folks

Edited December 18, 2013 by speno

[Tom Fenton 1,542]

Check the small print, but I believe that usually there is a clause in there to the effect that if you are paying monthly, in the event of an accident, the full premium then becomes payable, e.g. he needs to pay the full years amount. In any case he needs to get the paperwork out and read it carefully!

[speno 239 2 Cars]

Cheers, I told him to read the smalls too

[allye 530 3 Cars]

Yep! Sadly this is the case with most, happened to me when I was 17.

Edited December 18, 2013 by allye

[TooMany2cvs 65]

but the insurance company will not let him cancel his policy (he pays £200 a month )

Yes, he still owes them the premium for the full policy.

 

I suspect the confusion lies in him not realising/understanding/accepting that instead of buying "one month of insurance" for his £200, he's buying an annual policy and paying 1/12 of the £2,400 premium each month.

[stufarri 98 3 Cars]

Agreed as above.

 

It is a 12 month policy and any fault claims that are made (or non fault that remain unresolved) result in the full premium being due.

[speno 239 2 Cars]

Cool cheers folks will pass the info on

On a bonus point its another s*ite driver off the road ^^

[Rams_gti6 12 1 Cars]

After he's paid up in full he still has the remainder left to transfer on to another vehicle (did for me back in the day anyway)

[TooMany2cvs 65]

After he's paid up in full he still has the remainder left to transfer on to another vehicle (did for me back in the day anyway)

I'm fairly sure that the small print usually says that the policy is terminated after a claim involving total loss of the insured vehicle.

[Rams_gti6 12 1 Cars]

You might be right I just remember when I crashed my first car I got paid out minus my policy cost but then had to find a vehicle to insure as I was still insured for the remainder in fact I went to view a 1.9 gti in leeds, ended up with a mk2 xr2 instead though (was ford mad at the time)

[omega 82]

if he can find a cheaper car swap the insurance so he pays less a month.

[speno 239 2 Cars]

After he's paid up in full he still has the remainder left to transfer on to another vehicle (did for me back in the day anyway)

I asked my friend the same thing , He told me he don't want his son driving no more ( praise the lord the streets of chesterfield are safe again ;0)