Continued to pay insurance after claim

Naution

Hi all,

Around 4 months ago my motorbike was stolen and I claimed right away. I have just realised that I continued to pay my monthly premium for insurance up until last month when my policy expired. The claim has been paid out in full.

My question is should I have stopped paying the monthly premium as soon as I claimed as there was no motorbike for me to be insured on, and am I entitled to this money that I have paid?

Thank you

Torry_Quine

You still had to pay as insurance is an annual policy even when you pay monthly.

dunstonh

My question is should I have stopped paying the monthly premium as soon as I claimed as there was no motorbike for me to be insured on, and am I entitled to this money that I have paid?

You pay for insurance on an annual basis. Rather than pay for it in one go, you decided to take out a loan to pay it monthly.

When you suffer a claim in the policy year, you are required to pay the whole premium for that year. Motor insurance is not pay as you go. Its annual chunks.

sheramber

The full annaul premium is payable.

Was a deduction made from the payout for the balance of the annual cost?

If there was then you should not have continued to pay the instalments.

If there was not a deduction made then the rest of the premiums still need to be paid.

Aretnap

Though if you replaced the bike, the insurer should have given you the option of transferring the remainder of the policy to the new bike - subject to the new bike being one that they'd normally have been willing to insure, and possibly an additional premium if it was one they'd rate as higher risk than the old bike. See here - http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html#17

If you didn't replace the bike, or you didn't want to/couldn't transfer the policy, then as above the balance of the annual premium is due - either as a deduction from the settlement, or in the form of the remaining monthly instalments.