Is this allowed?

Renya

Okay, I'd like to point out that this didn't happen to me, it happened to a friend of mine, but I'm curious as to your opinion on it and what you think he should do next.

My close friend passed his driving test earlier this year, and was driving to school to take an exam, it was during January and that time where we were just getting over the snow, he skidded on some black ice on a road that was supposed to have been gritted by the council and crashed into a lamp post, when he arrived at school he was obviously shaken up and rung his insurance company, who told him that because he hadn't completed his payments for the year (he pays monthly) that he wasn't entitled to anything.

Surely this isn't allowed? His policy states that he pays monthly and he had paid for that month, yet he is not entitled to payment?
As far as I know they are considering taking legal action, as his car was written off, but because they're not exactly a "well off" family they're not sure whether they can afford it, the last time I spoke to him he said he was probably going to simply threaten legal action and hope that they back down.

What would you do in this situation?

pendulum

He must have missed a payment so was therefore driving without insurance.
They would not refuse a claim on a fully comp policy for the damage to his car if he pays monthly and was fully up to date with the payments.

melorablack

Sounds like they are talking rubbish to me...otherwise everyone would have to pay for insurance for a year before they are allowed to drive the car. Who is he insured with?

Renya

He told me he was up to date on all his payments, I know that's just what he told me but he's not a dishonest person

Renya

melorablack wrote: »

Sounds like they are talking rubbish to me...otherwise everyone would have to pay for insurance for a year before they are allowed to drive the car. Who is he insured with?

Am I allowed to say the name of the company? I'm a newbie here and I don't really want to get in trouble

melorablack

As far as I'm aware you are, people are always complaining about companies and naming them on here

mountainofdebt

I'm just wondering if the outstanding premiums for the year were equalled the value of the car and so no payment would be due because of that?

I have a feeling that insurance companies, where the car is a right off, will deduct the outstanding premiums from the amount remaining on the insurance premium.......don't ask me why I have this feeling I couldn't tell you:rotfl::rotfl:....... but I think this is whay they mentioned the paying of premiums monthly.

tbh I think all it needs is a phone call to the insurance co to ask them to explain why there isn't going to be a payment.

Renya

Oh okay, well he was insured with Quinn Direct, which is a shame because the quote they offered me was the cheapest so far, even though I haven't passed yet, but as you can tell I probably won't be going with them!

The_Hallowed_Way

mountainofdebt wrote: »

I have a feeling that insurance companies, where the car is a right off, will deduct the outstanding premiums from the amount remaining on the insurance premium.......don't ask me why I have this feeling I couldn't tell you:rotfl::rotfl:....... but I think this is whay they mentioned the paying of premiums monthly.

Yes that makes sense. If you make claim on a policy in any given year you must pay the entire cost of the policy. If you pay annually then that means that you cannot cancel the policy and get a refund. If you pay monthly then that means that you must finish your monthly payments for the year.

If the cost of the policy is sufficiently high (very possible in this case as the driver seems to be young and inexperienced) and the cost of the vehicle is low then the total of the outstanding premiums may be higher than the value of the vehicle.

nikki2804

I paid my policy annually for 3 years. Year 4 I chose to pay it monthly. Renewed in August, car was stolen in October and my insurance company had no problem in dealing with it, they would have just deducted the policy total from the cheque I was getting. Luckily i got my car back but they were still happy to pay out. So I'm confused as to why Quinn wouldn't?

Try elephant etc for cheap quotes, Quinn wanted £1000 of me when I was learning, Elephant only wanted £400.

nikki2804

Renya wrote: »

Oh okay, well he was insured with Quinn Direct, which is a shame because the quote they offered me was the cheapest so far, even though I haven't passed yet, but as you can tell I probably won't be going with them!

And just to note, they may be cheap for learners but it will sky rocket when you pass! (with Quinn anyway!)