Car insurance after car stolen?

vaio

22johnny22 wrote: »

With no disrespect meant; I find it staggering this question gets asked time and time again.

People should read the terms and conditions of the contract they have entered into.

For consumers the T&Cs have to pass the FOS fairness test to be valid.

There is certainly an argument that ending a policy on a total loss payout is unfair as the policy holder has paid for 12 months cover and now isn't getting it.

For those that allow the policy to be transferred to a replacement car then a similar argument can be made about subsequent cancellation & refunds.

The logic is that if I insure a car with a policy made up of £10 for fire cover, £15 for theft, £100 for own damage and £400 for third party damage and the car gets stolen 3 months into the policy.

If the insurer ends the policy then I've been deprived of 9 months cover.

If the insurer allows transfer to replacement car then it's fine

If it transfers and then I cancel the insurer is relieved of the risks of the remainder of the policy, which obviously has a value and it is unfair for that value not to come back to the policy holder by way of a refund

Aretnap

FOS has this to say. http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html#17

Most motor insurance policies are yearly contracts – so the full premium is payable even if the vehicle is written off during the year. If the consumer paid the yearly premium upfront, they will not receive any refund. Or if the consumer was paying the yearly premium by monthly installments, they must still pay the outstanding installments after the vehicle is written off.

When an insurer declares a vehicle a write-off, we expect it to offer a consumer the option of bringing a replacement vehicle onto the insurance policy so that the remainder of the policy term can be used. Depending on the make and model of the replacement vehicle, an additional premium may be required by the insurer. This should be calculated on a pro rata basis for the remainder of the policy term.

Which suggests that companies which don't allow customers to transfer the balance of the premium to a new vehicle will have trouble passing their fairness test.

cajef

PrincessLou wrote: »

Just to clarify - I meant a refund for the 6 months left unused.

It is not unused, as pointed out you have made a claim and the insurance company has paid out therefore the full annual premium is due.

BertTheRaccoon

Aretnap wrote: »

FOS has this to say. http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html#17



Which suggests that companies which don't allow customers to transfer the balance of the premium to a new vehicle will have trouble passing their fairness test.

Well that's Ryanair, sorry I mean the Admiral lot having trouble passing a fairness test