Non-fault accident (write off) - Still paying premiums?

[BYTEr]

Hi all,

I'd like peoples opinions on the following.

Purchased car insurance June 2020, paid for monthly, I had a car accident September 2020 which I pursued through my own insurance due to the fact is was pretty obvious I'd be found 100% not at fault and the 3rd party's insurance not willing to work with me to sort it out in a timely fashion.

My insurance wrote the car off and I received a lump sump and was told the policy will be suspended until I got another car (no timeframes or specifically what this meant was explained to me, nothing in writing either).

Come to January 2021 and I get confirmation in writing that my insurance have received complete settlement from the other side, that its confirmed as a non-fault accident and my NCB will not be affected.

I have decided not to get another car as we only need 1 car at present as I am now working from home.

I ring my insurance to let them know I no longer require insurance as I will not be getting another car.

They've agreed to cancel the policy, but have refused to refund any premiums I've paid since the accident (4 monthly payments since the accident - £120) and want to charge me a £60 cancelation fee.

Does this seem right? Through no fault of my own my car gets written off and because I've decided not to get another, I've had to pay for 4 months where I didn't have a car and then have to pay a cancellation fee to no longer pay to insure a car that's been written off?

I understand if it was a fault claim I'd need to pay the entirety of the insurance, but what about non-fault accidents?

My insurance's suggestion was to use my legal cover in an attempt to re-coup these losses?

Is this all legit/the norm?

Thanks in advance.

 

[mickyflinn]

This mite help.


https://www.google.co.uk/amp/s/www....9/amp/Why-pay-insurance-cars-written-off.html

 

[BYTEr]

This mite help.


https://www.google.co.uk/amp/s/www....9/amp/Why-pay-insurance-cars-written-off.html

Hi, thanks for that, I understand that though, he claimed through his own insurance and they never recovered costs so I get it, in my case however, my insurance company have reclaimed costs from the 3rd party? I'm being allowed to cancel without paying the rest of my policy but not being refunded for any money taken after the accident/write off and I think it's pretty unfair to charge a cancellation fee in this case but I'm struggling to find anything but cases where people have claimed on their own policy's and the insurance company not re-couping their losses.

 

[mickyflinn]

Hi, thanks for that, I understand that though, he claimed through his own insurance and they never recovered costs so I get it, in my case however, my insurance company have reclaimed costs from the 3rd party? I'm being allowed to cancel without paying the rest of my policy but not being refunded for any money taken after the accident/write off and I think it's pretty unfair to charge a cancellation fee in this case but I'm struggling to find anything but cases where people have claimed on their own policy's and the insurance company not re-couping their losses.

You still have to meet payments for the full term of the policy fault or not so if you cancel fees apply

https://www.quotezone.co.uk/car-insurance/guides/what-happens-to-insurance-if-car-written-off

 

[tom_e]

I guess the thinking is you've still used their services so therefore you're still liable for the cost of the cover.
If you pay in full and then write the car off part way through even if non fault you wouldn't get a pro rated refund.

 

[Haggisman]

I guess the thinking is you've still used their services so therefore you're still liable for the cost of the cover.
If you pay in full and then write the car off part way through even if non fault you wouldn't get a pro rated refund.

That doesn't make sense. The insurance co. haven't paid a claim, as they have recovered their costs from the 3rd party. The only service they have provided is the legally required cover for driving the car, during the period it was covered. After it was written off, there was no car to cover, so no service to provide.

How is this different to cancelling the insurance for any other reason (e.g. selling the car, SORN, etc.)?

In the OP's position I would expect to pay pro-rata for the period on cover, plus the cancellation fee.

 

[BYTEr]

So sounds like my insurance company aren't doing anything dodgy then?

Seems so unfair, I've paid for the period I had the car, any costs incurred for the claim process they should have claimed back surely so they shouldn't be out of pocket? Lost revenue due to me not finishing the policy again surely is claimable?

Ordinarily I would have got another car and would have been allowed to continue the policy but due to the pandemic have no real need for two cars.

I mean, what if I was now too anxious to drive? or physically couldn't because of injury?

Again, just seems unfair for a non-fault accident and I'm going to have to pay £180 after the accident when I didn't even have a car to insure.

 

[tom_e]

That doesn't make sense. The insurance co. haven't paid a claim, as they have recovered their costs from the 3rd party. The only service they have provided is the legally required cover for driving the car, during the period it was covered. After it was written off, there was no car to cover, so no service to provide.

How is this different to cancelling the insurance for any other reason (e.g. selling the car, SORN, etc.)?

In the OP's position I would expect to pay pro-rata for the period on cover, plus the cancellation fee.

Nothing really makes sense to the lay man when it comes to figuring out how insurance is costed.

I'm just thinking their position is probably that they had to provide a service i.e. deal with the claim, above and beyond just sitting there doing nothing but waiting for something to happen as they normally would therefore they've provided the service that the full premium was costed for.

I may be going off on completely the wrong path but it sounds plausible as something an insurance company would do.

 

[bloodiedathame]

When I wrote my bike off my insurer cancelled the policy... no bike, no insurance needed.

Insurance companies make their own damn rules up though, and it might have changed since my accident 8 years ago.

 

[Royal Fleet]

the policy will be suspended until I got another car .

When I worked in Motor Insurance many moons ago if a policy was suspended the credit would only be held against the next renewal and was not available as a refund at any point.

 

[BYTEr]

When I worked in Motor Insurance many moons ago if a policy was suspended the credit would only be held against the next renewal and was not available as a refund at any point.

Ok thanks, I was hoping in this case, me cancelling would essentially be cancelling as if it was the day after my car was written off as its been 'suspended', then I wouldn't of had to pay for the last 4 months for nothing, policy is suspended but I still have to pay monthly kinda seems pointless, its not like I'd want the policy to last longer as I'd want the extra NCB.

 

[r22snapper]

It is important to realise that when you pay for your insurance monthly that you are effectively running a credit agreement for the annual policy you have bought, you aren't paying for a month at a time. In the event of a writeoff your full annual policy fee would normally be due, if they've let you off some of it then happy days.

 

[jellybeard999]

It is important to realise that when you pay for your insurance monthly that you are effectively running a credit agreement for the annual policy you have bought, you aren't paying for a month at a time. In the event of a writeoff your full annual policy fee would normally be due, if they've let you off some of it then happy days.

This. You're financing an annual policy over the year, not paying for monthly insurance. If they've paid out, you still owe for the outstanding payments.

 

[BYTEr]

This. You're financing an annual policy over the year, not paying for monthly insurance. If they've paid out, you still owe for the outstanding payments.

They've not paid out, as said, my insurance company have fully re-claimed costs from third party.

This is the issue, everything I find is based on making a claim on my own policy that wasn't recovered, this isn't the case here.

 

[tom_e]

I'm pretty sure your insurance company can't claim the cost of your policy back from the other side though so they still need paying?
You've still used their service whether the pay out was recovered from the other side or not.

 

[Semple]

They've not paid out, as said, my insurance company have fully re-claimed costs from third party.

This is the issue, everything I find is based on making a claim on my own policy that wasn't recovered, this isn't the case here.

I think "they" in that context is whoever paid for your insurance policy. The insurance company would have been paid 100% of the policy at the point you started the policy regardless of whether you paid for it in full, or a finance company did.

What i think Jellybeard is saying is that the finance company paid out for your policy in full, and they would still be owed for the outstanding payments.

Also i assume you plan to get a car at some point in the near future - as NCB's don't tend to last very long.

 

[Haggisman]

I think "they" in that context is whoever paid for your insurance policy. The insurance company would have been paid 100% of the policy at the point you started the policy regardless of whether you paid for it in full, or a finance company did.

What i think Jellybeard is saying is that the finance company paid out for your policy in full, and they would still be owed for the outstanding payments.

Also i assume you plan to get a car at some point in the near future - as NCB's don't tend to last very long.

"They" in this context is OP's insurance company paying out for the claim. Which they did but have since recovered their costs, and so on balance haven't actually incurred any costs.

If OP had sold his car and cancelled his policy, he would have had a pro-rata refund (minus cancellation fee).
If OP had SORNed his car and cancelled his policy, he would have had a pro-rata refund (minus cancellation fee).
If OP had claimed from the 3rd party insurer and then cancelled his policy, he would have had a pro-rata refund (minus cancellation fee).

It seems in this instance, that even though OP's insurer haven't paid a claim, they are still holding him liable for the full annual premium.

Except they aren't - from what he's said, they're only holding him liable for the 3 months on cover, plus 4 months while the policy was "suspended". Surely he's either liable for the full year, or only for the months on cover, so what service exactly were they providing during those extra 4 months? If he had no cover, then there was no risk to insure, so what is he being charged for?

 

[BYTEr]

I've spoken with my insurance again, they're treating this as a normal cancellation, as if I'd sold or sorned the car.

They're refusing to refund the months I'd paid without having a car as I'd "used their services" during this period, they also said, the other party might have refused to pay out and it could have gone down as a 'fault' accident, this is despite them not taking my excess as they treated this as a non-fault accident from the start as it was obvious I wasn't at fault and had dashcam footage.

Also, my policy was never 'suspended', or at least there's nothing on the system to state this despite them telling me it was and they had written my car off, they also didn't know if I'd of still been charged if it was suspended or not.

Apparently now that its been confirmed the other party have/are paying out doesn't make a difference except now they will accept a cancellation without expecting me to pay any further except for the cancellation fee.

They have now logged a complaint and I'll hear back within 10 days.

I'm asking for the months I've paid without the car and the cancellation fee back as even though I understand I am cancelling, this isn't a normal cancellation due to selling or sorning, I've been involved in a non-fault accident and cost my insurance nothing, don't see why I should have to pay it.

I'll update this thread if/when I hear anything back.

Thanks for all the help/replies.

 

[Vanquish-Storm]

Who’s the insurer?

 

[tom_e]

It'll be interesting to see what comes back from your complaint.