Premium Settlement

drogerson

I'm with 1st Central Insurance.
Recently had an accident in my car, and the car was deemed beyond economical repair.

Now I am paying my premium in monthly installments.
My insurance say that any outstanding premium will be taken out of the settlement.
Is this standard???

Also, I am wanting to cancel the rest of my insurance policy (usually incurring a cancelling fee, which is no problem), can they still take all the premium of out my settlement?

Below is the policy wording.

9.6 Cancelling your policy

You may cancel your policy at any time by telephoning us on

0845 194 9930.

Following receipt of your policy documents you have a 14 day cooling off period during which you may

cancel your policy provided no claim has been made and you have not been involved in an incident which
might give rise to a claim under the policy. Any premium paid will be refunded but we reserve the right to
make a charge to cover the costs of setting up the policy. If the policy is cancelled outside the 14 day cooling
off period a charge will be made. Details of these charges can be found on your schedule.
The insurers have the right to cancel this policy at any time by instructing us to send to you seven days
written notice at either the email or postal address last known to us. If a claim has been made during the
period of cover no refund of premium will be given by the insurers, otherwise the insurers will return the
premium paid less an amount for the time it has been in force. This applies in all circumstances regardless
of your premium payment method.
If you are paying your premium by instalments any outstanding premium must be paid within 10 days of
your policy being cancelled and delayed payment may incur additional charges. The current Certificate of
Motor Insurance must be returned to us in order to cancel the policy.
You may cancel this policy at any time by returning the Certificate of Motor Insurance. Cancelling the direct
debit instruction does not cancel the policy. Once we have received your cancellation request, provided
you have not made a claim during the period of cover the insurers will return any unused premium having
deducted our cancellation charge shown in the schedule.
9.7 Total loss
If your car is damaged beyond economical repair it will become the insurers property. All cover under
the policy will cease as soon as the car is declared a total loss. Any premium owing to the insurer will be
deducted from the settlement amount paid to you.
If your car is subject to a hire purchase or leasing agreement the insurers will pay the agreed settlement

sum direct to the hire purchase

Advice would be most welcome.

cajef

drogerson wrote: »

Now I am paying my premium in monthly instalments.
My insurance say that any outstanding premium will be taken out of the settlement.
Is this standard???

Yes it is standard, insurance is a twelve month contract, when you take the policy out you have the choice of paying the full twelve months premium or as a concession by the the company they have let you pay it by monthly instalments, as the insurance have payed out for the accident the full amount is now due.

dogbot

As above, the full amount is due if you make a claim. You can not obtain any refund of premiums.

If you are buying a new car to replace the old one, you can ususaly transfer the existing policy onto that new vehicle. There may be an adjustment premium for any change in risk, but if you keep on at them hopefully the insurer should waive any adjustment charges given the circs of the change.

dacouch

dogbot wrote: »

As above, the full amount is due if you make a claim. You can not obtain any refund of premiums.

If you are buying a new car to replace the old one, you can ususaly transfer the existing policy onto that new vehicle. There may be an adjustment premium for any change in risk, but if you keep on at them hopefully the insurer should waive any adjustment charges given the circs of the change.

I agree that with the majority of companies the rest of the premium is due and there is not refund for cancelling and that you can change vehicles over to your new vehicle. As 1st Central at at the cheap and nasty end of the market they won't let you put a new vehicle on the policy, as the copy and paste the op has posted states the policy ceases