Car Insurance claim value on a write off

nik_mol

Hi all

I crashed my car and the car will more than likely be deemed a write off. At the moment I am waiting for my insurance company to come back to me, as at the moment it is in between being inspected and the report being sent to my insurance company.

I have heard lots of reports of what the final pay out consists of. I am aware that the payout is what the value of the car is and that they deduct the excess off that value but I have also heard that some (or all?) insurance companies also deduct the remaining premium of the policy as I pay monthly by direct debit. If this IS the case, then I will have pretty much nothing left to buy a new car as the value is only around the £1200 mark. And again, if this is the case, what is even the point of the insurance if I am left totally without a car because I am out of pocket due to my insurance company making their deductions.

This hasn't yet happened, by the way, I am merely speculating. But if what I have said is true, then it's not looking like a good outcome

Quentin

Yes you are correct.

And the policy may also end too (check the policy wording to see what happens after a yotal loss payout).

Maybe it will be better to cancel your claim, rather than end up out of pocket as a result of making it (assuming the write off is your fault).

If a third party is to blame, then cancel your claim and make a new one against tghe third party insurer.

nik_mol

No, I am to blame. It is going to be too late to cancel the claim now. When I was speaking to the car insurance company, all they said to me was they the excess will be deducted from the final value. Nothing was mentioned regarding the rest of the premium being paid.

jamhun

If the car is deemed a total loss the insurance company engineer wil call you to discuss the value of the car, once you have agreed a price with him you will be sent a cheque for the sum agreed (LESS ANY XS) yo buy another vehicle and then just add it to your policy as a chenge of vehicle and just carry on paying for your policy. depending on the car that you buy, your monthly premium may increase slightly, but you just make your new monthly payments as normal.

James

Quentin

jamhun wrote: »

If the car is deemed a total loss the insurance company engineer wil call you to discuss the value of the car, once you have agreed a price with him you will be sent a cheque for the sum agreed (LESS ANY XS) yo buy another vehicle and then just add it to your policy as a chenge of vehicle and just carry on paying for your policy. depending on the car that you buy, your monthly premium may increase slightly, but you just make your new monthly payments as normal.

James

You are assuming too much.

The policy may end after a total loss, and most insurers do deduct o/s premium from the total loss cheque. (Though the OP should ask if he can continue the monthly payments, this wouldn't be allowed if his policy is over!)

nik_mol

Hmm that seems much more feasible. So, in between all of this and having no car, the premium carries on and I continue paying the regular arranged monthly direct debits until I inform them of my new vehicle?

Quentin

You need to read up in your policy what happens after a total loss payout.

Apart from the possibility the policy ends, another scenario some companies use is to allow a short time to put a replacement car on the policy, but if you don't do so within the allowed timeframe, then the policy ends.

If your policy does continue, then check that any replacement you fancy is acceptable to the insurer before you buy it.

nik_mol

I understand what you are saying. But take this for example. My insurance allows me to cancel a policy and will charge me a fee of £55 for this and that is it. Is this not the same kind of scenario. I have entered a 12 month contract, yet they allow me to cancel the policy for just a fee of £55 and that's it. How is this any different to me ending the policy due to a total loss and no longer needing the policy.

Quentin

It's different because they may end it!

Check what it says in your policy about write off/total loss payout.

Whatever happens you will have to pay the full 12 months premium if you make a claim.