Help please - sold my car but insurance company won't stop the monthly premiums???

AndyJudge

Hello, My son has lost his job and will sell his car, but Direct Line have said that because he has made a claim on that policy within the policy year, albeit on a different car that was stolen, he'll still have to pay for insurance at £100 per month until the policy expires in July. Is this legal? Is there anything he can do as it will escalate his debts?
Can anyone offer any help please or advice on how he can change this?
Thanks
Andy

Hintza

Sorry I haven't a clue...but I am interested to know the answer.

Coiuld always stop the DD?

I hope someone can answer this question...if you have no luck here try honestjohn forums and plaese report back

helen_caslass

why should he pay insurnce on something he no longer has, i think they are trying to claim back the costs rather than the insurance

marcellep

AndyJudge wrote:

Hello, My son has lost his job and will sell his car, but Direct Line have said that because he has made a claim on that policy within the policy year, albeit on a different car that was stolen, he'll still have to pay for insurance at £100 per month until the policy expires in July. Is this legal? Is there anything he can do as it will escalate his debts?
Can anyone offer any help please or advice on how he can change this?
Thanks
Andy

This is insurance comps at there best. Read the small print about direct Line cancellation fee. Call them up and tell them I want to cancel with immediate effect, No explanation is required, they should and will calculate time on car, premium paid to date and add there cancellation fee. You will find that you may need to pay them so much to cancel, this is due to the fact that you are breaking the 12mth agreement that you taken out.

I would def cancel the DD NOW, then call them

Hope that helps

movilogo

Usually most insurance companies say that if you ever make a claim, you are bound to continue the insurance for 1 year (ie. the full term).

For Norwich Union & Admiral, I know this is the clause.

brazilianwax

Yes he does have to pay up - he entered a contract to do so when he took out the policy.

If it weren't this way then people would take out insurance, pay a month's payment, claim and move on. Insurance companies aren't charities.

Can't he get another job?

olly300

AndyJudge wrote:

Hello, My son has lost his job and will sell his car, but Direct Line have said that because he has made a claim on that policy within the policy year, albeit on a different car that was stolen, he'll still have to pay for insurance at £100 per month until the policy expires in July. Is this legal? Is there anything he can do as it will escalate his debts?
Can anyone offer any help please or advice on how he can change this?
Thanks
Andy

Yes.

My insurance policy (different insurers) make it clear that if you pay monthly then make a claim you have to pay up the rest of the policy.

By the way paying monthly for insurance of any kind means you have entered a credit contract. Normally this is arranged via a credit company linked to the insurance company with a horrible rate of interest. If you cancel the DD without sorting out repayments then the credit company will chase you for the money not the insurance company. The best thing to do is find out how much money is owing and either settle the amount in full, or continue to pay the DD otherwise your son will eventually be chased by debt collectors.

DavidHM

Essentially the policy is an annual policy, so that he is covered for claims for 12 months from the date of inception of the policy. To be covered, he has agreed to pay £x - the premium. If he doesn't claim during that period, he can cancel and get a reduction against the premium. As he has claimed, he can't.

It's all in black and white in the policy documents and whilst it's harsh, it is legal and he has signed up to it. In my opinion it's also fair because the insurance companies will use the knowledge that a certain percentage of people will be in this situation, having to pay for the remainder of the policy after a claim, in calculating their premiums.

saintjanet

Sorry to say, as many before that yes he will,its down to the claim he made,otherwise it would be no problem to cancell,although he would still be charged for doing so.

plane_boy2000

Yes he will have to pay. In reality he has paid for a insurance policy and then is repaying the amount through a finance agreement so if he stops the repayments then he will be in breach of his credit agreement

blue_haddock

As others have said he as agreed an annual policy so should pay the full annual rate.

It would be like buying a cake, eating half then deciding you don't want the other half so can you have your money back on what you haven't eaten.