Third Party Claim - Cancellation of Policy?

stewart239

Hi,

I really need some help.

My sister recently had a car accident (she went in to the back of another car). She reported the accident and she was told to take the car to an authorised garage, so that it could assess the damage. She was told this was required because of a potential third party claim and not because she was intending to make a claim for the damage to her car.

The garage found that the car was beyond economical repair and recommended that the car be scrapped. My sister went along with the claim and has today received an offer of -£400 (yes she has to pay)!. Due to the fact that she is a young driver with an eye-watering excess of £600 and £800 left to pay on the total cost of her premium (she was paying monthly).

I've had a look at the terms and conditions of the policy, which do not seem to offer much guidance. I was wondering whether when there is a potential claim against a third party, and the insured's car is beyond economical repair, if the insurance company would be entitled to bill for the full cost of the premium for the entire year, before dealing with the third party claim. Even though the insured is not claiming for the damage to his/her car.

She is better off with paying the £400 if this is the case. As she would only have received £100 to scrap the car and would have had to pay £800 to the insurance company for the premium. However, if not then she is out of pocket. Under the terms of the policy she would only have had to pay £50.00 to cancel the policy. Although, I am not sure if she would have been able to cancel the policy with a potential claim looming.

I was wondering if anyone would be able to shed some expert generic light! A very confused household to say the least!

Many thanks.

Quentin

If she has caused any damage or injury to the third party then her insurer will get a claim off the third party.

It seems from what you say she is to blame, so although she can cancel her policy she will still have to pay the full year's premium.

forgotmyname

Who is the insurance with?

Can she cancel her claim for the damage to her car? Just leaving the other person to claim from her policy. No avoiding that.

But will her insurance will want the policy cancelled because the car isnt roadworthy or some other excuse?

Her premium will need to be paid in full for the year no matter what happens.

She could find out the total costs and pay them back. But im guessing the total may make your eyes water.