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Car Insurance - company wants full years payment for a car that no longer exists!
gstir_2
Posts: 88 Forumite
Hi,
I am posting to get some advice for an 18 year old family member. He got a car in December 12, took out car insurance and signed up to pay it by monthly direct debit. In February 13, he had an accident, slipping on black ice. Car got scrapped and he advised insurance company of this. He did not claim on this insurance policy.
He now has a letter saying company wants him to pay £1900, the remaining monies due to make up the yearly premium.
Can they do this? As legally the car no longer exists and no claim was made?
Any help/advice will be greatly appreciated.
I am posting to get some advice for an 18 year old family member. He got a car in December 12, took out car insurance and signed up to pay it by monthly direct debit. In February 13, he had an accident, slipping on black ice. Car got scrapped and he advised insurance company of this. He did not claim on this insurance policy.
He now has a letter saying company wants him to pay £1900, the remaining monies due to make up the yearly premium.
Can they do this? As legally the car no longer exists and no claim was made?
Any help/advice will be greatly appreciated.
0
Comments
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Even when paying monthly it's an annual policy and so yes the whole amount is due. Why didn't he claim?Lost my soulmate so life is empty.
I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
Diana Gabaldon, Outlander0 -
The car was not of any value. He ended up getting a good deal with a car dealership, getting him a brand new car.0
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The car was not of any value. He ended up getting a good deal with a car dealership, getting him a brand new car.
Why did he cancel the policy then, he could possibly have used it for the new car?Lost my soulmate so life is empty.
I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
Diana Gabaldon, Outlander0 -
He had to take the deal offered by the garage for insurance.0
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He had to take the deal offered by the garage for insurance.
Makes sense, presuming it saved on having the other insurance to pay.Lost my soulmate so life is empty.
I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
Diana Gabaldon, Outlander0 -
I don't think he realised that he would have to pay £1900 to previous insurer. His way of thinking was that he wouldnt have to pay for something that doesn't exist! Can fully understand though re the yearly policy. It's been a very expensive mistake for him.0
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Not the 1st or last. Plenty more pitfalls in life.Censorship Reigns Supreme in Troll City...0
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Can he not cancel the insurance?0
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Agree - he was paying his policy up, and unless the insurer agrees to a rebate because of the accident (not uncommon) then they should pass the rebate on to the finance house they may - but not completely clear the amount due.0
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Did he actually cancel the policy or just stop the monthly payment?
Assuming no claims were made then he will be able to cancel the policy which will involve cancellation charges but should be less than the original full year.0
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