car written off-pay insurance monthly -insurer wants year premium

indebted_to_you

Hello, this is my first post and I'm hoping for some advice. Mrs indebted had an accident in early March where her car was written off. She advised insurance broker and they duly advised insurer. She had paid March & April monthly payments but had cancelled May's payment.

Have come home tonight to a default notice from the insurance company for failure to collect May payment. To say I am livid is an understatement.

Mrs Indebted had spoken to them before and they say they require full year's premium (£260). She obviously hasn't had the car since the accident (first premium payment was Feb 07),so I'm wondering where we stand in having to pay insurance for a car she doesn't have until Feb 08.

Should she fight this or just pay up ?

Any advice greatly appreciated.


Thanks

ariba10

If you had paid it in one payment, you would have lost it.

If I remember right the policy expires on a write off and if you get another car you will have to take out a new policy.

indebted_to_you

Seems to be the case...she'll pay up and put it down to experience. Seems a letter was sent in April advising payments need to continue, but she didn't receive it. She'll try to get the default removed as well (fingers crossed).

Thanks

FlameCloud

The majority of car insurances are a yearly contract, by paying monthyl you essentially take out a loan from the insurance company.

Of course they'll want it paying back!

Clive_Woody

Sorry to say it, but you purchased a year long insurance policy and therefore have to pay for this in full. Even if you wrote the car off the day after taking out the policy you still have to pay the full amount for the year.

scousemanblue

To be honest, you would be better to put another car on cover so the policy will continue thus not meaning you have to take another one out and pay for a full 12 months premium.

caileag

scousemanblue wrote: »

To be honest, you would be better to put another car on cover so the policy will continue thus not meaning you have to take another one out and pay for a full 12 months premium.

I thought that once a policy paid out for a right-off, that was it - the policy was completed and you had to take out a new one on any replacement vehicle.

FlameCloud

Depends on the policy. Some do, some dont.

ioscorpio

The policy is not ended when your vehicle is written off, it is up to the ins co if they want the policy paid off before they will pay out, or if you are going to get another vehicle the policy will transfer onto the new one. If you are not going to get a new car straight away you can ask your ins co to suspend the policy until you get a new car.

If you look at it from the ins co's point of view, you could insure a £20,000 car pay one monthly payment and then they have to pay you out for a write off without receiving the full cost of the policy, it would affect their costings and profits.