We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
'Fault' insurance claim resulting in loss of annual premium
Comments
-
Then I excuse your ignorance on this matter.Torry_Quine wrote: »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.;)
You're both still not getting it are you?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)
For your benefit I have drafted this little example (ignore excesses and rising costs):
Driver A buys £600 insurance in Jan 2012.
In Feb 2012 he has an accident and cancels his policy.
He then has to re-buy his 2012 insurance at £500 (£600 minus 2 months).
Total cost for 2012: £1100
Or put another way Driver A pays £1200 for 14 months insurance.
Driver B buys £600 insurance in Jan 2012.
In Nov 2012 he has an accident and cancels his policy.
He then has to re-buy his 2012 insurance at £50 (£600 minus 11 months).
Total cost for 2012: £650
Or put another way Driver B pays £1200 for 23 months insurance.
THUS > is this fair by comparison?
I am not questioning the fairness of the principle. I am questioning the unbalanced nature by which it affects different drivers depending on where they are at within their term.I imagine bugs and girls have a dim suspicion that nature played a cruel trick on them, but they lack the intelligence to really comprehend the magnitude of it. -- Calvin & Hobbes :rotfl:0 -
If you have a claim and cancel your policy there is no refund.
You don't have to cancel and can continue to use the policy on a replacement car (assuming the insurer is prepared to cover it).
If you write off the car then things may be different as many insurers end the policy after a write off as posted above.
When you buy the policy it's all set out for you in the conditions.
If you want to get round this "unfairness" you perceive, you could buy short term policies that last, say, a month instead of the annual policy you are now unhappy with.
But it will be much more expensive if you don't cancel it early!0 -
If you have a claim and cancel your policy there is no refund.
You don't have to cancel and can continue to use the policy on a replacement car (assuming the insurer is prepared to cover it).
If you write off the car then things may be different as many insurers end the policy after a write off as posted above.
When you buy the policy it's all set out for you in the conditions.
If you want to get round this "unfairness" you perceive, you could buy short term policies that last, say, a month instead of the annual policy you are now unhappy with.
But it will be much more expensive if you don't cancel it early!
Just so I understand properly.. you're saying you consider the above example fair then?I imagine bugs and girls have a dim suspicion that nature played a cruel trick on them, but they lack the intelligence to really comprehend the magnitude of it. -- Calvin & Hobbes :rotfl:0 -
Insurance is simply a business and like all businesses, insurance companies have to set their terms and conditions to maximise their profits and minimise losses and potential losses.
Provided that the insurance companies make their T&C's visible to potential customers before they agree to sign up for a policy and those customers have the option whether to proceed or not, fairness doesn't come into it.0 -
The insurer is taking a gamble.
They are gambling in the likelihood of a person making a claim within the period [1 year, usually?]
For that gamble, they demand a modest sum from the proposer.
If the now-new client has a claim early on in the year, the insurer loses...big-time.
No mention is made of the person who pays their premiums, year after year, never having a claim made against them?
How fair is it for that person who, having made the effort to avoid being claimed against, still pays up with little to see for their money?
Other, than a promise?
The OP's situation must be fair........insurance cover is paid for...a claim is made, the contract is fulfilled.
After all, only one premium has been paid?
Is it fair to an insurer to have to continue to take the risk, potentially having to pay out on two or more claims, for one single premium?
The only reason Insurers appear to have their customers over-a-barrel, is because insurance is mandatory.No, I don't think all other drivers are idiots......but some are determined to change my mind.......0 -
Unfortunately Shaun I'm inclined to agree with you in that 'fairness' is rarely a consideration when insurers are concerned.. however let's not forget there are regulatory bodies like the OFT who has one responsibility to ensure fairness for the consumer is very much a consideration.shaun_from_Africa wrote: »Insurance is simply a business and like all businesses, insurance companies have to set their terms and conditions to maximise their profits and minimise losses and potential losses.
Provided that the insurance companies make their T&C's visible to potential customers before they agree to sign up for a policy and those customers have the option whether to proceed or not, fairness doesn't come into it.
Not that I think I'd ever get anywhere with that but I certainly intend to challenge them if not at least because I consider they had a duty to forewarn me when we discussed the cancellation.I imagine bugs and girls have a dim suspicion that nature played a cruel trick on them, but they lack the intelligence to really comprehend the magnitude of it. -- Calvin & Hobbes :rotfl:0 -
I understand where you're going with this but consider your point "After all, only one premium has been paid?" <-- this just simply isn't true in my scenario. I will in effect have to pay for insurance twice this year.. so in my view no it's not fair compared to other drivers irrespective of whether they have accidents or not.The insurer is taking a gamble.
They are gambling in the likelihood of a person making a claim within the period [1 year, usually?]
For that gamble, they demand a modest sum from the proposer.
If the now-new client has a claim early on in the year, the insurer loses...big-time.
No mention is made of the person who pays their premiums, year after year, never having a claim made against them?
How fair is it for that person who, having made the effort to avoid being claimed against, still pays up with little to see for their money?
Other, than a promise?
The OP's situation must be fair........insurance cover is paid for...a claim is made, the contract is fulfilled.
After all, only one premium has been paid?
Is it fair to an insurer to have to continue to take the risk, potentially having to pay out on two or more claims, for one single premium?
The only reason Insurers appear to have their customers over-a-barrel, is because insurance is mandatory.
As to what is "fair" for the Insurance Companies? Really? _pale_I imagine bugs and girls have a dim suspicion that nature played a cruel trick on them, but they lack the intelligence to really comprehend the magnitude of it. -- Calvin & Hobbes :rotfl:0 -
Is it fair to an insurer to have to continue to take the risk, potentially having to pay out on two or more claims, for one single premium?
After a claim the insurance cover will continue, and if the policyholder has another claim it will be paid, but the premium for the year has to be paid in full, and no refund if you cancel.
It's only following a write off that the insurance cover might end. It turns out the OP's claim resulted in a write off.
The OP cancelled his policy (after the write off), so no refund is possible. We don't know whether or not he could have put a replacement car on the policy as he hasn't told us what his policy says happens after a write off.
But in any case he cancelled the policy himself. It seems he either doesn't understand his policy or never read it.0 -
You're still avoiding answering my question Quentin.After a claim the insurance cover will continue, and if the policyholder has another claim it will be paid, but the premium for the year has to be paid in full, and no refund if you cancel.
It's only following a write off that the insurance cover might end. It turns out the OP's claim resulted in a write off.
The OP cancelled his policy (after the write off), so no refund is possible. We don't know whether or not he could have put a replacement car on the policy as he hasn't told us what his policy says happens after a write off.
But in any case he cancelled the policy himself. It seems he either doesn't understand his policy or never read it.
I already said I could have left it running but cancelled the policy under the guidance of the Agent I spoke to.. if you're going to continue to post on this thread please take the trouble to read my posts more thoroughly.I imagine bugs and girls have a dim suspicion that nature played a cruel trick on them, but they lack the intelligence to really comprehend the magnitude of it. -- Calvin & Hobbes :rotfl:0 -
The fault loss wasn't the cause of the lost premium but the cancelling of the policy.
You pay the yearly premium to cover you for the cost of any claims you might have. As you had a claim they took the full cost of the premium, so your policy was paid up for the year.
the problem is that you were advised to cancel the policy... So i'd phone them to complain, the call should be recorded so there'll be proof that it was them that advised you to cancel it and not just you asking to. the best you could hope for is that they re-activate the policy for the remainder of the year, so you can change the car.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards