Car written off, premiums refunded? No.

CLAPTON

I would bother to read the T&Cs

Sparx

rtparrott wrote: »

Hello, first time poster and could really do with some advice... I'll start from the top here...

My carwas recently broken in to outside of my home. The would-be thief bent the topof the door and unlocked the car through the gap they had made. They had a goodroot around but got away with nothing as far as I could see. I called Admiraland they came to collect the car as it was now unsecure on the road. They arranged for thecollection and bringing the car to a nearby garage for an assessment. A fewdays later, despite the minimal damage. I was informed the car had been writtenoff. I then waited for the valuation and final settlement amount and was agenerally satisfied with the offer, minus the excess.

I hadhowever hoped that my insurance premium which I paid in full only 3 or 4 months earliermight have been added in as well, seeing as the policy was now defunct, but apparently within the terms and conditions ofmy policy, this money is Admirals to keep and can be factored in to any new policy I get with Admiral up to the date of renewal.

This is a bit gutting, if Id paid in installments I'd be better off. I'm not really prepared to go rooting through the T's and C's to see if the clause is there. I understand I'll get money off my next policy (supposedly), but I'm thinking of packing in driving altogether for the moment as I can't afford it.

Do I have a cause for complaint here, or should I just be happy with the offer I got and stop my bellyaching.

Thanks,

No. Your policy is still active, despite you made a claim you could get another car and use it for another 3/4 months (the remainder of the 12 month policy). I would know as I wrote my old car off years ago and had paid 12 months in full, I got another car a few weeks later and carried on with my policy at no extra charge (with the Admiral group).

You would not of been better off paying monthly either. As you would've had an extra 10-30% interest by paying monthly. Also you would not get a refund for the fact you paid 12 months for a car insurance policy, you have now claimed and it has served its purpose.

That is exactly what you pay them for.

rev_henry

No you have no cause for compaint. You can either ask Admiral to continue the insurance on a new car or just not buy a new car. Either way you won't be getting any premium back but buying a new car would allow you to 'use' that which you've already paid for a bit more.

forgotmyname

You bought a policy for 12 months. You have used the policy so not entitled to any refunds.

As already said the policy is still open. So buy a car and continue to use it or cancel it and walk away.

vaio

Rather than just parroting the insurance industry line how about......

The majority of your premium is the third party liabilities bit, when you buy a policy you get, among other things, cover for third party liabilities for 12 months irrespective of any claims made.

Therefore it seems fair to me that even if a total loss has occurred the remainder of the policy can be transferred to a replacement car. This transfer would expose the insurer to the continuing risk (= cost).

If the policy holder decides not to replace the car then the insurer is not exposed to that risk (= cost) and to me, it seems fair (in the FOS sense) that the policy holder should get a refund rather than the insurer keeping it.

pinkteapot

I understand your point vaio, but if the insurance ombudsman or any other body ever ruled that this standard T&C was unfair and insurers had to change their rules, they would simply increase the cost of all premiums to cover their losses.

Frankly I'd rather that didn't happen. Selfish I know but I'd rather take the chance on having a total loss one day than have the guarantee of yet another factor increasing my premiums.

dunstonh

I understand your point vaio, but if the insurance ombudsman or any other body ever ruled that this standard T&C was unfair and insurers had to change their rules, they would simply increase the cost of all premiums to cover their losses.

In the FOS publications they have deemed in fair that the insurer keeps the premium when there has been a claim.

Rather than just parroting the insurance industry line how about......

....looking at the FOS position which reflects the same information that has been given on this thread.

EdGasket

I have just checked Admiral's policy and it specifically says that in the case of total loss, the policy will be CANCELLED. It does not say you can transfer the balance of the remaining policy to another car? This seems grossly unfair as having paid/having to pay for 12 months cover they then seem unwilling to provide said cover after you make a claim. With some insurance premiums being in the £thousands for young drivers, it seems like daylight robbery to just cancel the policy. Some people have suggested the remaining insurance can continue on a new car but I do not see that in the policy wording (see below), can anyone clarify this?

Admiral's policy states on page 24:
"Should your car be stolen and/or deemed a total loss, your policy will be cancelled without prior notice by writing to your last known address. We will deduct any outstanding premium owed from any payment to you. If your car is a total loss please refer to General Condition 10."

"10 Total loss of your car
If your car is a total loss, your car will become our property. All cover, including
the driving of other cars extension if applicable, is then cancelled for you and any other drivers on the policy. We will deduct any outstanding premium and fees owed by you from any claims settlement we make to you as we will have met the responsibilities under the policy."

vaio

EdGasket wrote: »

I have just checked Admiral's policy and it specifically says that in the case of total loss, the policy will be CANCELLED. It does not say you can transfer the balance of the remaining policy to another car? This seems grossly unfair as having paid/having to pay for 12 months cover they then seem unwilling to provide said cover after you make a claim. With some insurance premiums being in the £thousands for young drivers, it seems like daylight robbery to just cancel the policy. Some people have suggested the remaining insurance can continue on a new car but I do not see that in the policy wording (see below), can anyone clarify this?........

That's the point I was making, a lot of the rules and T&C were developed for a different world where insurance premiums were basically insignificant in the general scheme of things. (I've been lucky, I started driving in the '70's, always had quick/high powered/modified cars and have never paid more than two weeks wages for insurance)

These days where our apprentice is paying three months wages for a car worth maybe 20% of what it costs him to insure ending a policy on a total loss payout means that insurers would be tempted to write off for really trivial damage as the retention of the remainder of the premium would be the largest sum involved.

For example, if he had an total loss accident then his insurer would pay out £500 for his car, recoup £400 of that by collecting his excess from him and they would also end his policy and hang onto to the remainder of his £3k pa premium without having to accept the risk that the premium was intended to cover ie pure profit.

To me it seems fair that the policy should be able to be transferred onto a replacement vehicle, and once you accept that argument then it logically follows that a refund should be available if transferring to a replacement doesn't happen.

forgotmyname

Its insurance its only fair if it lines their pockets.