£200 lost from Car Insurance - Please Help!!

HannaB

Hello all,

I discovered this website last year and it has really turned my life around. I would like to thank Martin and all the posters for their hints, tips and ideas. They have really helped me. It is because of this that I turn to you guys for advice.

Two weeks ago, I was involved in a road accident. A van plowed into the back of my car which resulted in the total write-off of my beloved Clio. The claim is still ongoing and my car is still being valued. However, today I found out I will not be able to claim back the cost of my full annual car insurance premium.

I am 23 years old and although, I no longer have to suffer the extortionate car insurance premiums of my late teens, they’re still not cheap. My last annual premium was about £350 which I paid in full (on my 0% credit card ) at my renewal at the end in February 2007. Last week, I was told my car insurance had been cancelled. It made sense, after all I don’t have a car anymore.

Today, I asked my car insurer (Elephant.co.uk) if the outstanding amount (around £200 for the 7 remaining months) would be refund as part of the final settlement. Elephant.co.uk said no. So, I asked if the outstanding amount could be offset against the insurance on my next car. Again, they said no. It felt like a scene from Little Britain! The reason they gave that the amount would be used to cover their expenses for the write-off of the car.

I considered this for a moment. I thought they claimed back all their expenses through the third party insurance company together with the value of my car. Perhaps I am naïve and it doesn’t work in the way I thought.

Now, I am expected to pay a full 12 months premium when I get a new car. I will be £200 out of pocket following an accident that wasn’t my fault. :mad:I checked online and it seems that Swinton, First Direct and Sainsbury’s Bank car insurers have the same terms.

Does anyone else have any experience of this? Is there anything I am able to do? Is this normal to expect from a car insurer?

Please help.:(



Hanna

raskazz

Firstly I am afraid it is absolutely standard that if a total loss claim is submitted in the policy year, then the full annual premium is payable whether the policy eventually runs for the full year or is subsequently cancelled mid-term.

There is no obligation for an insurer to keep the policy open to allow a new vehicle to be insured, however a reasonable period of time is usually allowed as good customer service. From the timings you give it does seem that your insurer did not allow you very much time to replace your vehicle. Am I right in thinking that your policy was cancelled 1 week after the accident? Did you ask them whether they would keep the policy open until you could place a new vehicle on cover?

The amount that your insurer can reclaim from the third party is only their net cost. They cannot recover the costs of administering your claim.

You may want to consider pursuing the third party for this loss. Do you have legal expenses cover attached to your policy?

HannaB

Hi Raskazz,

Thanks for taking the time to reply.

I do have legal cover on the policy (very grateful I do) and claiming it back from the third party was an idea I put forward to them yesterdat which I still haven't received a response from. However, owing to the fact this seems to be standard across all insurers, I'm not hopeful.

They did cancel the policy only a week after the accident. In fact, I received the cancellation notice only 3 days after I heard the car was a write-off. I am currently driving a hire car and I am not in a position financially to buy a new car outright without the settlement payment. Which I think may hinder the reinstating of the policy it to enable me to insure the new car. However, I'll give this a go (no harm right).

Thanks for the ideas. Serves me right for not reading the small print.

Hanna

MattJD_2

Hi HannaB,

Sorry i cant offer any help but i am in exactly the same situation and found your thread whilst searching.

Im with Admiral (sister company to elephant) and have also been in a rear-end accident that wasn't my fault that resulted in a total write-off

I have had my settlement figure but until the 3rd party admits liability i have a final (minus my excess) figure of £400 :mad:

My policy that was canceled ends in 3 months time so have lost nearly a years NCD, (leaving me with two years) which until the 3rd party admits liability is actually worth zero. So now i have to fork out more in insurance, have to wait to re-claim my excesses and have to get a temporary loan so i can get mobile again. All for something that was never my fault :mad:

Matt

HannaB

Hi Matt,

Thanks for the message. I wouldn't wish this situation on anyone. £400 is a joke. That would only just cover the tax and car insurance on my next car. I don't blame you for being angry about it.

It's been nearly four weeks since my accident and I haven't heard anything regarding a settlement figure. I just keep getting fobbed off with excuses. I feel more like an inconvenience to the insurance company than a victim. I have been told that a claim would take ten weeks to complete. That should be interesting considering I only have my hire car until the first week of Septemeber.

HB

olly300

Both of you get your policies out, find the customer complaints address and write a complaint letter to your insurance company. At the end of the letter inform the company that if you don't hear from them in x weeks (x = the time they state for answering complaints in the small print) you will refer the matter to the financial ombudsman. Send the letter by recorded delivery.