Cancelling Insurance

andydadswell

My son (aged 19), took out 3rd party F&T insurance on his car approx 5 months ago. In December he had an accident and his car was written off, the other car involved had minor damage.

To date no claim has been made against his insurance and he is still paying out £70 per month even though he no longer has a car.

Is there any reason why he cannot just cancel the insurance and stop paying £70 per month, the Insurance company have suggested that he might be able to cancel if no claim is made, but if there is a claim then he will have to continue paying.

Does this sound correct ?

dunstonh

The insurance company are correct.

andydadswell

So is it all down to whether or not a claim is going to be made by the 3rd party.

How long should be allowed for the claim to be made, it's already 1 month since the accident and the insurance company haven't been contacted by the 3rd party yet.

dunstonh

He could cancel it now. However, if a claim comes in, he would have to pay them the outstanding premium in one lump and the excess payment as well.

The other party could be another month or two yet potentially.

Quentin

dunstonh wrote: »

if a claim comes in, he would have to pay them the outstanding premium in one lump and the excess payment as well.

Don't worry too much about having to pay any excess whatever the outcome of this.

You don't usually have any to pay in the event of a third party claim against you.