Can you cancel an Insurance Policy - If a claim is ongoing?

Virdi

Virdi

Virdi

Soldato
Joined
11 Jun 2004
Posts
4,231
Location
Middlesex, London
Hi all,

My little cousin smashed up his Corsa a few weeks back. He'd only been dirivng for 3 weeks.

He's paying Tesco Insurance monthly. The car is not worth repairing, so it's off the road.

Can he cancel the policy now? Only thing is though, the other fella he hit, has put a claim in against him...


Thanks
 
Surely he still owes them the rest of the contract period... you know, for the rest of the 11 months he has left.
 
If the cars deemed to be a write off then wouldn't the insurance company just deduct their fees and cancel the insurance anyway?
 
My experience was that once the car is off the road the policy is cancelled without a refund for the remaining period. You should however be able to reinstate the policy upon aquiring another vehicle without having to pay for it a second time (there will be a top-up fee if you buy a vehicle of higher insurance group though).

If you haven't claimed you can usually cancel 12 month policies at any point, although you normally have to pay to the end of the month in which you are cancelling. It's not like a mobile contract, at least it hasn't been for me.
 
Virdi said:
Hi all,

My little cousin smashed up his Corsa a few weeks back. He'd only been dirivng for 3 weeks.

He's paying Tesco Insurance monthly. The car is not worth repairing, so it's off the road.

Can he cancel the policy now? Only thing is though, the other fella he hit, has put a claim in against him...


Thanks
Click to expand...

He can't cancel the policy until the Claim is resolved.

If it was his fault, he will need to pay the remaining 11 months of the policy.
 
Not my experience of insurance at all.

I cancelled an Admiral policy with an outstanding 3rd party claim after my company had paid me out for my total loss. I received a full pro rata refund minus a small admin fee.
 
Will depend on the company, but i remember reading direct lines T&C about cancelling and it said no refund would be given if there had been a claim during the insurance period.
 
Jez said:
Not my experience of insurance at all.

I cancelled an Admiral policy with an outstanding 3rd party claim after my company had paid me out for my total loss. I received a full pro rata refund minus a small admin fee.
Click to expand...

The other party in this case has put in a (counter) claim. Until that is resolved he will have to pay - only once it has been agreed who is to blame will he be able to cancel the policy.
 
jamief said:
The other party in this case has put in a (counter) claim. Until that is resolved he will have to pay - only once it has been agreed who is to blame will he be able to cancel the policy.
Click to expand...

I do not see how this differs from mine. Liability has still not been resolved nearly a year later.
 
Jez said:
I do not see how this differs from mine. Liability has still not been resolved nearly a year later.
Click to expand...

Well I'm just speaking from my own experience.

I had an accident (which turned out to be my fault). Sold the car shortly after; phoned up to cancel the insurance and was told that I was due no refund (and had I been paying monthly, would have had to pay the whole premium) due to the claim being ongoing.
 
I'd be outraged at that, you pay for insurance for a set period and if that is cancelled i'd damn well expect a refund. I am sure companies differ but thats definitely something i will be reading into with future policies :/
 
The insurance company did the same with me and deducted the rest of the years premium from the payout they gave me, I was able to restart the policy on a new car without paying them anything for the duration of the original policy as I bought an identical car.
 
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