£200 lost from Car Insurance - Please Help!!

[HannaB]

Hello all,

I discovered this website last year and it has really turned my life around. I would like to thank Martin and all the posters for their hints, tips and ideas. They have really helped me. It is because of this that I turn to you guys for advice.

Two weeks ago, I was involved in a road accident. A van went into the back of my car which resulted in the total write-off of my beloved Clio.:cry::cry: The claim is still ongoing and my car is still being valued. However, today I found out I will not be able to claim back the cost of my full annual car insurance premium.

I am 23 years old and although, I no longer have to suffer the extortionate car insurance premiums of my late teens, they’re still not cheap. My last annual premium was about £350 which I paid in full (on my 0% credit card ;)) at my renewal at the end in February 2007. Last week, I was told my car insurance had been cancelled. It made sense, after all I don’t have a car anymore.

I asked my car insurer (Elephant.co.uk) if the outstanding amount (around £200 for the 7 remaining months) would be refund as part of the final settlement. Elephant.co.uk said no. So, I asked if the outstanding amount could be offset against the insurance on my next car. Again, they said no. It felt like a scene from Little Britain! The reason they gave that the amount would be used to cover their expenses for the write-off of the car.

I considered this for a moment. I thought they claimed back all their expenses through the third party insurance company with the value of my car. Perhaps I am naïve and it doesn’t work in the way I thought.

Now, I am expected to pay a full 12 months premium when I get a new car. I will be £200 out of pocket following an accident that wasn’t my fault. :mad:I checked online and it seems that Swinton, First Direct and Sainsbury’s Bank car insurers have the same terms.

Does anyone else have any experience of this? Is there anything I am able to do? Is this normal to expect from a car insurer?

Please help.:(



Hanna

[ArsenalFC]

I dont think your insurance have all the rights to do what they have told you. Clearly the accident wasn't your fault so telling u that they had to use the £200 to off-set the written off fee is plain rubbish, in that case how come they do not claim whatever amount from the fault driver's insurance to cover everything?

Secondly, I made a fault claim when i hit a wall last year, it was assesed as a write-off. My insurer then gave me a 3-4 weeks period to get another car to transfer the cover over for the remaining months. In fact I got £45 back because the car i transferred the policy over were in lower insurance group.

Get back on the phone to them and tell then you will not stand for unfair terms and if they do not offer to pay you the remaining money or allow you to transfer the remaining months onto another car then you'll get in touch with the insurance onbudsman. I dont know their terms & conditions, but I do not believe for a moment that they can have such terms that do not let u transfer remaining months of cover over onto another car.

If you get any joy after talking to them and they backed down, you can find a car to buy which I think they will give u a time frame around 4weeks. If you dont find the right car in that time, u can always cover a friends car and say that its yours, when u get your car, u then transfer the insurance over again. Hope you get some result out of this. Im sure other knowledge people here can help further.

[brazilianwax]

I asked my car insurer (Elephant.co.uk) if the outstanding amount (around £200 for the 7 remaining months) would be refund as part of the final settlement. Elephant.co.uk said no. So, I asked if the outstanding amount could be offset against the insurance on my next car. Again, they said no. It felt like a scene from Little Britain! The reason they gave that the amount would be used to cover their expenses for the write-off of the car.



Hanna

Definitely not right (I used to work for one of their sister companies).

You don't 'offset' - the policy can stay active and you put another car on it for the remainder of the term - but there is likely to be a time limit as ArsenalFC explained.

[raskazz]

It is actually an absolutely standard policy condition that if the vehicle is a total loss during the policy year, then the full premium is due - whether or not the policy then runs to completion. Every single motor insurer has a condition to that effect.

As pointed out, most insurers allow a certain time in which the insured can substitute a new vehicle on to the cover. However, this is only provided as a gesture of goodwill - in law they are entitled to cancel the policy with no refund immediately after the car is declared a total loss.

Your insurer can recover net costs from the third party (i.e. the payout for the total loss) but not the costs of administering the claim.

The insurer will not refund the £200 - of this I am certain. Your best bet is to recover the costs from the party that caused them - i.e. the third party driver who hit you - not, as some suggest, threaten your insurer as they have not acted improperly.

[Conor]

I considered this for a moment. I thought they claimed back all their expenses through the third party insurance company with the value of my car. Perhaps I am naïve and it doesn’t work in the way I thought.

Now, I am expected to pay a full 12 months premium when I get a new car. I will be £200 out of pocket following an accident that wasn’t my fault. :mad:I checked online and it seems that Swinton, First Direct and Sainsbury’s Bank car insurers have the same terms.

Does anyone else have any experience of this? Is there anything I am able to do? Is this normal to expect from a car insurer?


The insurance policy is still active. When you find a new car, you ring up your insurers and notify a change of vehicle. You'll be billed for any additional premium due or refunded as appropriate depending on whether the new vehicle costs more or less to insure.

WHAT YOU NEED TO DO whilst you've got no vehicle is to phone them up and get them to suspend the policy - that way you'll not be using it when there's nothing to cover although there's a time limit for how long they'll do this for.

[impy78]

Hello all,

I discovered this website last year and it has really turned my life around. I would like to thank Martin and all the posters for their hints, tips and ideas. They have really helped me. It is because of this that I turn to you guys for advice.

Two weeks ago, I was involved in a road accident. A van went into the back of my car which resulted in the total write-off of my beloved Clio.:cry::cry: The claim is still ongoing and my car is still being valued. However, today I found out I will not be able to claim back the cost of my full annual car insurance premium.

I am 23 years old and although, I no longer have to suffer the extortionate car insurance premiums of my late teens, they’re still not cheap. My last annual premium was about £350 which I paid in full (on my 0% credit card ;)) at my renewal at the end in February 2007. Last week, I was told my car insurance had been cancelled. It made sense, after all I don’t have a car anymore.

I asked my car insurer (Elephant.co.uk) if the outstanding amount (around £200 for the 7 remaining months) would be refund as part of the final settlement. Elephant.co.uk said no. So, I asked if the outstanding amount could be offset against the insurance on my next car. Again, they said no. It felt like a scene from Little Britain! The reason they gave that the amount would be used to cover their expenses for the write-off of the car.

I considered this for a moment. I thought they claimed back all their expenses through the third party insurance company with the value of my car. Perhaps I am naïve and it doesn’t work in the way I thought.

Now, I am expected to pay a full 12 months premium when I get a new car. I will be £200 out of pocket following an accident that wasn’t my fault. :mad:I checked online and it seems that Swinton, First Direct and Sainsbury’s Bank car insurers have the same terms.

Does anyone else have any experience of this? Is there anything I am able to do? Is this normal to expect from a car insurer?

Please help.:(



Hanna


No, you are not stupid.

Unless the other driver was uninsured, or their insurer has refused to pay out to your company, you shouldn't have to pay the entirety of the remaining premium. But the insurance doesn't cover your insurance, only the cost of replacing the car you had insured.

However, you may have been charged cancellation fees and short term rates for cancelling before the end of the 12 month minimum contract period (details of which will be located in you policy documents).

Why did they cancel the policy? Are you not replacing the car?

[HannaB]

Hello All,

Thanks for your replies.

According to Elephant, the policy has already been cancelled. I was notified of this 3 days after I was told (by the garage and not my insurer!) that the car was a write-off. I agree that this time frame is a bit short.

I do intend to buy a new car, but I am not in a position financially to do so without the settlement money. Because of this, I don't know how long it will be before I will get one. However, I will contact Elephant and ask if they can keep the policy active.

Thanks for the ideas.

Hanna