Car write off

holymonk

holymonk

holymonk

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Friend crashed the other day (other drivers fault but they haven't admitted it). Her car is only worth about a grand I had a look at it airbag gone, front and side damage, clearly more than 1k to fix.

The insurance company have called her explaining she will get a figure next week for the car, however they are going to deduct outstanding insurance fee's (she pays monthly) from the settlement figure and cancel her insurance.

Is this right? seems like a rip off to me, though not fault of her own they are going to take a full years insurance premium part way through the year because some fool drove into her?

Shes with Admiral.
 
Yes because the point of paying it monthly is that you're essentially being financed by the insurance company. The contract length is still 12 months.
 
If you read the terms and conditions it will say that in the event of a claim the full balance will be due.

Just be glad they are taking it out of the pay out and she doesn't have to pay it up front before they process her claim.
 
cheechm is correct. Insurance is paid for the year. The option to do so monthly is merely convenience finance... that contract still needs to be settled.

So, they'll take the remaining amount for the year from the settlement figure. Standard stuff.
 
yup standard practice i am afriad. If not thier fault, any additional costs will have to be claimed back through the insurance. But effectively if the damge is that much on that car, it is write off value - excess (claim that back)
 
Are they taking the FULL remainder amount?
I thought with most insurance companies, if you paid annually, but cancelled part way through you would actually get a pro rota refund?
Therefore you would expect on a monthly payment not to have to pay all remaining months.

Though possibly this doesn't apply if they are having to pay out too?

Edit: Too slow, already answered above!
 
ajf said:
Are they taking the FULL remainder amount?
I thought with most insurance companies, if you paid annually, but cancelled part way through you would actually get a pro rota refund?
Therefore you would expect on a monthly payment not to have to pay all remaining months.

Though possibly this doesn't apply if they are having to pay out too?

Edit: Too slow, already answered above!
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Big difference between you cancelling a policy and crashing your car.
 
holymonk said:
If its your fault I understand it, but if its the other parties negligence you would think that the insurance company would recover those costs from the other parties insurer.
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Why would they pay your premium?

Read the T&Cs of the policy if paid monthly, they state what is required in the event of a claim.
 
holymonk said:
If its your fault I understand it, but if its the other parties negligence you would think that the insurance company would recover those costs from the other parties insurer.
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If the other party accepts full liability, then I would expect your friend would be re-imbursed the policy installments they are proposing to deduct from the settlement as it would be classed as a Non-fault claim. However, if the two insurance companies are unable to agree on liability then it will be classed as a Fault claim by your friend and the outstanding premiums would be due.
 
In the advent of any accident, you are calling on the insurers services and hence they want the full amount paying up. They are only giving you a grace / credit to pay monthly.

Any costs outstanding will have to be claimed as a seperate line item against the other party.

Put it this way.

You want me to make you a computer for £120. So I do and you want to pay it off £10 a month. If after 3 months you have it stolen, I still expect to be paid the remaining money. You would have to claim the difference off the house insurance.
 
Although they say they are cancelling her policy, when I had the same situation with Bell (same company as Admiral) they allowed the policy to continue on a replacement car "as a gesture of goodwill"

Catanonia said:
Put it this way.

You want me to make you a computer for £120. So I do and you want to pay it off £10 a month. If after 3 months you have it stolen, I still expect to be paid the remaining money. You would have to claim the difference off the house insurance.
Click to expand...

That's a terrible analogy which is in no-way similar! :p
 
When I wrote a car off I bought a new one about 2 weeks later, my policy just carried on (adjusted monthy price as it was a different car).

Presumably the person will buy another car, can they not just do that?
 
If this is how it actually does work I think that's a complete rip off.

I have always paid my insurance monthly and most of the policies I have taken I have cancled before a full year (when at Uni only bought a car for summer home from Uni then sold it when moved back).

Everytime I have cancelled I have paid what I owe pro rata plus an admin fee, they are not insuring me past the date I cancel so I don't pay for insurance past that date.

In this situation, they will not be insuring her car past the date it was written off, so why should she be paying for insurance past the date she was written off?

She is in effect being forced to pay for a service she is not receiving. I can't believe this is how it works but obviously it does from all your responses. Absolutely terrible practice in my opinion.



Edit: If another car is bought and they carry on the policy for the remainder of the term, albeit at an adjusted rate for different vehicle, fair enough. But if no other car is bought (I know I wouldn't be able to afford to replace my car immediately) and they make her pay for say 9 months insurance where she has no vehicle and is receiving no insurance, I think that is tantamount to theft.
 
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Actualy putting it that way, I wrote my focus off, deemed as my fault as no other vehicles involved.

My insurance was "put on hold" until I bought a replacement car, at which point it covered my new car.
 
agree with Greenja, surely if they are cancelling her policy now then all she should have to pay would be anything outstanding up to the date on cancellation i.e. the date declared as being written off. maybe to the end of that month at most! but for the rest of the year. that is bull what they are doing :(
 
~Divine~Wind~ said:
Actualy putting it that way, I wrote my focus off, deemed as my fault as no other vehicles involved.

My insurance was "put on hold" until I bought a replacement car, at which point it covered my new car.
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This is how it has always worked for me. I have gone through 2 write off's now and the insurance has been reinstated for the remainder on a replacement vehicle.
 
Jez, did they stipulate any kind of time frame for you to replace your vehicle?

I think its fair for both parties if insurance carries on for a replacement vehicle, but not if they say "2 weeks or we charge you".
 
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