'Fault' insurance claim resulting in loss of annual premium

nearlyrich

In answer to your question yes it's fair the insurance company take your money, they take a risk that they might make some money out of your premium. It doesn't really matter when in the term of your insurance you have an accident if you claim it all becomes forfeit. It usually costs more to settle a claim than any individual actually pays out in a premium.

K-Lye

nearlyrich wrote: »

In answer to your question yes it's fair the insurance company take your money, they take a risk that they might make some money out of your premium. It doesn't really matter when in the term of your insurance you have an accident if you claim it all becomes forfeit. It usually costs more to settle a claim than any individual actually pays out in a premium.

Absolutely no issue with this at all. I understand an am content to pay the premium (aside from the inflated prices due to the uninsured driver risk).

What I am asking is is it fair that people who get 1 month use of their policy pay the same price as those who get 12 months worth of use? (assuming identical situations)

Comparatively in my case (the 1 month scenario) I will now have to shell out another 11 months worth of insurance compared to that other individual. So the net result is I pay more.

Torry_Quine

K-Lye wrote: »

I already said I do not doubt this is how it "works". Why do you have difficulty understanding my original post? Please enlighten me and I am more than happy to re-word it.

You fail to answer my question.. do you consider it fair that people who get 1 month use of their policy pay the same price as those who get 12 months worth of use?

You presume wrong.

Of course it's fair. You have received the service that you paid for.

I did wonder if you'd had car insurance before but thought that surely someone who had wouldn't expect money back from a service they've received

Torry_Quine

K-Lye wrote: »

Absolutely no issue with this at all. I understand an am content to pay the premium (aside from the inflated prices due to the uninsured driver risk).

What I am asking is is it fair that people who get 1 month use of their policy pay the same price as those who get 12 months worth of use? (assuming identical situations)

Comparatively in my case (the 1 month scenario) I will now have to shell out another 11 months worth of insurance compared to that other individual. So the net result is I pay more.

As you were getting another car why did you cancel instead of asking to continue the policy? There would obviously have been some extra expense but surely not as much as a new policy.

K-Lye

Torry_Quine wrote: »

As you were getting another car why did you cancel instead of asking to continue the policy? There would obviously have been some extra expense but surely not as much as a new policy.

This is why I'm so furious about the second part of my question. I discussed with the agent asked him what was best to do as I didn't want to keep paying for insurance in-between cars. He told me it would be fine to cancel and just start a new policy when I get the new car. He did not mention I would lose the premium when had I been aware I would definitely not have canceled.

zappahey

K-Lye wrote: »

What I am asking is is it fair that people who get 1 month use of their policy pay the same price as those who get 12 months worth of use? (assuming identical situations)

Comparatively in my case (the 1 month scenario) I will now have to shell out another 11 months worth of insurance compared to that other individual. So the net result is I pay more.

You said you wanted to cancel, it now seems that you want to insure another car. Was your car written off?

Have you asked if you can transfer the policy to another car?

K-Lye

Torry_Quine wrote: »

Of course it's fair. You have received the service that you paid for.

I did wonder if you'd had car insurance before but thought that surely someone who had wouldn't expect money back from a service they've received

You're clearly being facetious.. and still avoiding answering my question.

K-Lye

zappahey wrote: »

You said you wanted to cancel, it now seems that you want to insure another car. Was your car written off?

Have you asked if you can transfer the policy to another car?

Yes. Car was written off (for mere bodywork damage but that's another story). Yes, I asked this at the time of the Agent who told me that I could but that the premium would continue to be in effect so I couldn't put a "hold" on my insurance. So I thought fair enough and suggested cancellation as an option to which he concured it would be the more sensible approach.

Thinking back on it now, I rather suspect the Agent didn't realise himself I would lose the premium. Even when I called to complain today the Agent I called into didn't quite follow the situation and had to go off to get further advice.

Torry_Quine

K-Lye wrote: »

You're clearly being facetious.. and still avoiding answering my question.

I did answer your question and no I'm not being facetious. I have never driven and even I am well aware that you are paying an annual insurance.;)

Quentin

Have you read what your policy says happens after a write off?

(Many insurers end the policy after a write off, meaning you have to buy a new policy for any replacement car you get)