Car Insurance - Sheila's Wheels

Cleo2005

Hi

My housemate was hit by an uninsured driver a couple of months ago. Luckily, the car he was driving was insured, so the insurance company was able to claim from that company.

Her car was a write off, and my housemate received a cheque from a third party for the value of the car and the scrap value.

She has not got a new car, and does not have a car that she needs to insure.

Sheila's Wheels sent a letter to state that there was an outstanding balance on the account. When she called up to check what the balance was and pay, they told her that she owed them £600 pounds, which we can only conclude is for the rest of the year.

This seems strange to me, because it wasn't her fault that the car was a write off, so if they do need to claim this money, why didnt this get included in the claim to the other insurance company? And why does she need to pay insurance on a car that they have written off, and she wanted repaired!? :eek:

Has anyone had a similar experience?

InsideInsurance

The insurance policy was for a year. Whilst it was a non-fault incident it doesnt remove her from her agreement to buy a years insurance.

Normally you would simply transfer the remainder of your policy to the replacement vehicle you have purchased. If you decide not to buy a replacement vehicle with the total loss settlement then you would need to cancel the policy. Whilst there is an unrecoverable cancellation charge I would be surprised if it is the full £600 if it has been settled on a non-fault basis.

mikey72

You say " the insurance company was able to claim from that company."

Did you put the claim through your company, who then claimed from the third party?
If so, was it your company that wrote the car off.

Cleo2005

Thanks, yes Sheila's Wheels wrote the car off.

adamc260

Most companies, if its a non fault claim, will cancel it on a pro rata basis because you didn't cause the accident, nor did you cause your car to be written off therefore forfitting the rest of your policies premium. Seems wrong to me what esure are saying.

Providing your insurance company hasn't had to fork out the cost of your car being written off.. they shouldn't be charging you for the rest of the year. If they have had to fork the cost out and can't recover their outlay then what they're saying is correct.

Cleo2005

As far as I am aware, Sheila's Wheels has not forked out the cost of the car being written off, because the person who drove in the back of her (in stationary traffic!) was driving a car that was insured in someone elses name (his Aunt's). They told her that because of this, they could recover their costs from this insurance company. Even though the boy driving was uninsured himself.

£600 is just really excessive. Do you think a trip to CAB would be an idea?

Thanks for your help!

adamc260

I think a complaint to eSure would help

InsideInsurance

I think clarity from esure as to why they are charging the full years policy on a non-fault claim is more in order before taking it further.... sounds more like they have not yet recovered their full outlay from the third party.

adamc260

You know what call centres can be like... the staff that work there are often left in the dark as to why things happen. As said above, get some clarity as to why your being charged the premium if the outlay has been recovered. If it hasn't, that explains why.