Can you cancel insurance if TPF&T and car written off?

AuntyJean

A friend had a woman drive into their car on a roundabout and she is disputing it saying she did not change lanes. Friend is TPF&T only so unable to claim on their own insurance which was only started about a month or two before the incident.

They are paying their premiums monthly and the insurance company has said they must continue to pay even though they don't have a replacement vehicle. Would they not be entitled to cancel the policy albeit they would have to pay a certain percentage (ie if paid in full up front would the insurance company not discount if policy cancelled within a month or two)?

HappyMJ

Insurance is an annual commitment. The full annual premium is due as soon as you take the policy out. As the premium is quite large many insurers allow you to pay more in instalments. It then becomes a loan.

A claim has now been made on the insurance and the full premium is due no matter what.

If no claim had been made then it may have been possible to get a refund on the premium but that's now not going to happen.

AdrianC

As MJ says. It's very simple - insurance is annual. You might pay monthly, but that's because you've taken credit out for the full premium.

If the two insurers come to the conclusion that your friend was not liable, and the claim is settled with the other driver being held totally at fault, THEN your friend may be able to cancel their policy, as no claim will have been made against it.

If, otoh, your friend is held partially or wholly responsible, then the annual premium will require paying in full.

Nodding_Donkey

The good news is that a lot of roundabout disputes are judged to be 50/50 in the absence of any other evidence. This means your friend will be able to claim for half her losses.

Quentin

If your friend has legal cover with her policy then that can be used to pursue the woman's insurer for your friend's uninsured losses (ie. the written off car plus all other expenses incurred over the incident)