Insurance Premium Spent Following Claim

elmpp

Hi there,

I've recently had my motorbike stolen only 6 weeks into a new policy with Bennetts Insurers. They paid up quickly and fairly so no complaints there.

As it's my second theft I've swapped to a car and a new policy. However, I'm told that I'm unable to cash in the 10 remaining months of the Bennetts policy as is apparently the case following a claim. I'm confused as they say I still have a valid policy and can transfer it to another bike, should I get myself one.

I'm inclined to get the slowest motorbike out there, transfer it and pocket the difference.

Is this correct and does anyone have any experience with this in terms of recouping this policy's worth?

InsideInsurance

It is normal practice that a policy cannot be cancelled for a refund after any form of "fault" claim, fault being defined as a claim where they dont get their money back.

Often if you are paying by installments they will take the outstanding premiums from the settlement cheque for the total loss as recovery of the remaining installments is very low after the vehicles written off and policy terminated (eg if vehicle is worth less than the excess)

elmpp

InsideInsurance wrote: »

It is normal practice that a policy cannot be cancelled for a refund after any form of "fault" claim, fault being defined as a claim where they dont get their money back.

Often if you are paying by installments they will take the outstanding premiums from the settlement cheque for the total loss as recovery of the remaining installments is very low after the vehicles written off and policy terminated (eg if vehicle is worth less than the excess)

Can kind of see where they are coming from but the policy was not cheap and it represent a fair portion of the pay out.

Any advice in terms of recouping the worth? The (pedantic) phone operatives said if I were to transfer to a cheaper/slower bike there could be some difference to be claimed?

Quentin

They are saying that if you were to put a cheaper to insure bike on the policy then the new bike may result in a reduction of premium (just as a more expensive to insure model would result in an increase)

InsideInsurance

elmpp wrote: »

Any advice in terms of recouping the worth? The (pedantic) phone operatives said if I were to transfer to a cheaper/slower bike there could be some difference to be claimed?

If the new vehicle is cheaper to insurer then there would be a return premium generated, but partially offset by the admin fee for making the change.

Certainly the insurers I have dealt with wont do a refund for terminating the policy post a fault claim but will do an return premium for reducing the vehicle on cover.

elmpp

Quentin wrote: »

They are saying bike that if you were to put a cheaper to insure bike on the policy then the new bike may result in a reduction of premium (just as a more expensive to insure model would result in an increase)

Yes, which makes sense. Am thinking this must be the only way to go to recoup some of this policy's worth.

I was thinking about putting my father on the account and getting him to cancel his policy?

What doesn't make sense to me is that I still have 10 month's worth of valid policy yet it isn't reclaimable as money, yet any other policy can be, prior to a claim

Quentin

You had a claim though, which means you have to pay the premium in full (as you will have been notified in the policy ts + cs)




Make sure they know that the bike you want to add onto the policy is not yours.

InsideInsurance

elmpp wrote: »

I was thinking about putting my father on the account and getting him to cancel his policy?

Have to check the cancellation costs for his own policy. Secondly you must ensure you correctly declare who the main driver under the policy will be. All of this would be subject to the insurer accepting it and not everyone is going to accept someone insuring their fathers vehicle in their own name and having their father as a named driver but also the main driver

elmpp

All very annoying. I have nearly £800 worth of insurance still valid.

Apart from buying a cheaper/slower bike and getting any difference reimbursed does anyone have any suggestions as to recouping this worth?

smifffy1989

You cannot. You paid for a service that has now been provided, you cannot now ask for your money back.

Best thing to do is get another bike and make the most of the 10 months to go.