Still paying car insurance on a written off car?

ajarnold

Hello everyone

I apologise if this has been asked before. There are a lot of threads on here!

My query in I have a car insurance policy which i took out. The broker is The Insurance Factory and the insurance company is Groupama. I decided to pay monthly, but unfortunately had to make a claim only 2 days after taking out the policy. Groupama have paid out, however The Insurance Factory are saying that I still need to pay the remaining 11 months of the policy off. It seems a little harsh paying another 11 months worth on a car I no longer have!

It's the first time i've ever made a claim but maybe this is how it is. I'd just like someone to confirm, or are they wrong to be asking for the rest of the money

Thank you
Alan

brazilianwax

Doesn't matter whether you claim on day 1 or day 364 of your policy - terms are usually that if you claim, you owe the full year's premium.

Any outstanding premium is often deducted from the payout.

FH_Brit

To make it simple, it's like buying a can of beans costing 35p and paying for it over a year at 3p per month - you eat it on day 1. You still owe for the rest.

I think your view of things would change if say you sold your car and let the buyer pay over a year, and they wrecked the car (so they don't have it anymore) and as you said above, did not pay you because "it is unfair"!

Just think, if what you are saying that you think it's unfair, we could all buy a new car EVERY day and wreck it the same day and never pay for it - just think how bad the motor industry would be? Oops they already are that bad - silly me!

ajarnold

FH_Brit wrote: »

To make it simple, it's like buying a can of beans costing 35p and paying for it over a year at 3p per month - you eat it on day 1. You still owe for the rest.

I think your view of things would change if say you sold your car and let the buyer pay over a year, and they wrecked the car (so they don't have it anymore) and as you said above, did not pay you because "it is unfair"!

Just think, if what you are saying that you think it's unfair, we could all buy a new car EVERY day and wreck it the same day and never pay for it - just think how bad the motor industry would be? Oops they already are that bad - silly me!

Thank you for the replies, when you explain it like that it makes perfect sense. I've re-created my direct debit for the policy and have been told i can just change the car on the policy to my new one, and only pay an admin fee! Saves cancelling the policy, where the balance would still be due, or setting up a second policy. Might be handy for anyone else in the same boat as me

dacouch

The easy way to explain this is, you have a contract with the Insurer to cover your car. When they pay out a total loss for it they have peformed their side of the contract thus they still want paying. In the old days (A few of the cheapo companies still do) after a total loss claim your policy ceased immediately, you still paid the premium but had the added cost of having to arrange a new policy as well.

You should find that Groupama will allow you to cover your replacement vehicle on the remainder of the policy (There may be a charge for this)

brazilianwax

dacouch wrote: »

You should find that Groupama will allow you to cover your replacement vehicle on the remainder of the policy (There may be a charge for this)

I know the font was tiny, but that's exactly what the OP has confirmed in their follow up post