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    • MiriamGrace
    • By MiriamGrace 9th Jan 18, 9:29 PM
    • 1Posts
    • 0Thanks
    Car insurance policy -continued charge when car is written off
    • #1
    • 9th Jan 18, 9:29 PM
    Car insurance policy -continued charge when car is written off 9th Jan 18 at 9:29 PM
    I recently had an accident that wasn’t my fault, and have received payment through my previous insurer. they say I cannot close my policy as the claim is still being handled- they are awaiting full recovery of costs from the other insurer of the driver at fault.

    During this time I have to continue to pay my monthly payment to my previous insurer (I now have a new car and insurance company that gave me a better quote) even though the other car is now written off. Will I be reimbursed this? Or is this just a result of going with another insurer when I have a claim open?

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    • angrycrow
    • By angrycrow 9th Jan 18, 9:41 PM
    • 449 Posts
    • 337 Thanks
    • #2
    • 9th Jan 18, 9:41 PM
    • #2
    • 9th Jan 18, 9:41 PM
    When you take out a car insurance policy you agree to pay for a full years unsurance. Most insurers will allow early cancelation but only if no claims have been made.

    When your car is written off you should add your replacement car to the policy as a substitute vehicle for the remaining term of the policy.

    By taking out a new policy you wasted the remain time left on your current policy. The remaining premium will never be refunded and is not a valid uninsured loss so cannot be recovered from the at fault insurer. If you are still within the 14 day cooling off period on the new policy you could still untangle the mess. That is unless the saving on the new policy outweighs the amount lost on the original policy in which case no need to alter anything.
    • Richard53
    • By Richard53 10th Jan 18, 9:25 AM
    • 2,618 Posts
    • 2,220 Thanks
    • #3
    • 10th Jan 18, 9:25 AM
    • #3
    • 10th Jan 18, 9:25 AM
    It's a common misconception that monthly payments on car insurance mean you are insuring it per month. As said above, the contract is for a year and you are simply paying the whole year's premium in 12 lumps. You are liable to make the remaining payments even if you have a total loss payment.
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