Car Insurance claim

ajas49

My daughters partners van was stolen, it was found burnt out in Preston.
The insurance company will not pay out until he pays them £600.
They say this is because he was paying monthly by direct debit and he must first pay his complete premium before they will settle his claim.
Surely this is wrong?
Can anybody advice
A.J.

cogito

It's not wrong but it does seem unusual. They are entitled to receive the full premium and may consider that they won't get it once they've paid out.

Clive_Woody

I would have thought it more likely they would deduct any outstanding premium (+ his excess) from any settlement they agree to, rather than asking him for an upfront payment.

Has he missed any payments?

raskazz

Seems a bit odd, normally they would just deduct the outstanding premiums and excess from the value of the vehicle and pay whatever amount remains.

However, they may be asking for the premium before settlement if the van is old and not worth much - eg if the van was judged to be worth £500, the excess was £100, and the outstanding premium is £600 then they cannot pay a cheque for minus £200!