Car Insurance with claim and SORN

hwbarton

My son had an accident in his car which was his fault. He latterly SORN his car. The insurance claim is ongoing. He has 6 moths to run on his insurance policy and has no NCD.

Can he cancel his insurance policy without affecting the ongoing claim? There is no point having full insurance for a SORN car but I do not want to push the claim costs directly on to him.

Thanks,
Howard

chris_m

Whether or not the insurance co will cancel the policy is up to them - however, I am pretty sure that they will require the full year's premium to be paid for the year in which the accident occurred.
I assume from your question that he is paying by instalments - this is only a method by which the company allows the policyholder to spread the cost over the year, it is not a means of only paying for a month at a time. If a policy is cancelled partway through the year, the insurers may offer a refund or cessation of future payments but they equally well may not and are most unlikely to do so if there is a claim during that year.

Quentin

hwbarton wrote: »

...
Can he cancel his insurance policy without affecting the ongoing claim.....

Yes. He will be able to cancel.

But not much point in case he wants to unsorn his car or replace it during the next 6 months as cancellation will normally invoke cancellation fees to pay on top of the outstanding premium which will have to be paid now he has a claim against the policy.

LadyDee

His annual premium goes towards the cost of the claim, why should he be able to cancel the policy? He should be required to pay the full premium.

forgotmyname

The full premium will be payable + an admin fee.

Having insurance on a SORN'd car maybe worth it if its stolen or obtains more damage, that is covered. 3rd party cover? Not repairing the car?

chris_m

LadyDee wrote: »

His annual premium goes towards the cost of the claim, why should he be able to cancel the policy? He should be required to pay the full premium.

If the insurance company processes permit, the policy can be cancelled - thereby preventing any further claims being accepted. However, as in my first reply, it is very unlikely that they won't expect the full premium (or any outstanding balance) to be paid.

They may require it to be paid before the current claim will be settled, or they may deduct it from any settlement figure, if there is to be one, due to their policyholder, depending on their processes.

Quentin

LadyDee wrote: »

why should he be able to cancel the policy? ....

Because all policies can be cancelled by either side.


The details on cancellation will be set out in the policy, and are agreed by both parties at the start of the policy.


Making a claim is irrelevant to whether or not cancellation is allowed!