Car insurance issue

Topgun1539

Hi I recently had an accident my fault no others involved and car was declared a loss so I got a letter saying they would pay me x amount but would be taking nearly all of it to pay any unpaid premiums which they did.now I'm on the understanding that after they did that then my insurance would be paid up for the rest of the policy and I wouldn't have to make any more payments until I'm ready to renew which is 6 or 7 months away.
I went on ask mid to see if my car was insured but says it isn't. Can anyone clarify this or put me right as to what's what's
Thanxs in advance.....Topgun!!

forgotmyname

After a total loss claim the insurance may end the policy. Some may allow you to transfer it to another vehicle but not all.

Have you bought the car off them or have they taken it away?

Quentin

forgotmyname wrote: »

After a total loss claim the insurance may end the policy. Some may allow you to transfer it to another vehicle but not all.

This is not correct.

After a total loss claim your policy should continue untill its renewal providing a replacement is put on cover

The only problem that could arise is if they are not prepared to cover the actual model you want to replace with.

So before buying the replacement you should check that it is acceptable to your insurer.

Also check how long they will allow the policy to run before a replacement is put on cover

Retrogamer

Quentin wrote: »

This is not correct.

After a total loss claim your policy should continue untill its renewal providing a replacement is put on cover

The only problem that could arise is if they are not prepared to cover the actual model you want to replace with.

So before buying the replacement you should check that it is acceptable to your insurer.

Also check how long they will allow the policy to run before a replacement is put on cover

Is there a window though where you have to purchase another car to transfer the policy onto? I'm assuming the OP's insurance company have completed the policy as the car that was originally insured technically doesn't exist anymore.

Quentin

Retrogamer wrote: »

Is there a window though where you have to purchase another car to transfer the policy onto? .....

There may be. (See #3 - last paragraph)

(Your assumption is incorrect - see #3)

maddogb

Quentin wrote: »

There may be. (See #3 - last paragraph)

(Your assumption is incorrect - see #3)

whilst the assumption may be incorrect, some policies do have wording in that states if the car is written off after settlement any monies owing for cover will be taken and the policy will then be cancelled.

dacouch

maddogb wrote: »

whilst the assumption may be incorrect, some policies do have wording in that states if the car is written off after settlement any monies owing for cover will be taken and the policy will then be cancelled.

Many policies do contain such a wording, however those nasty people at the Ombudsman who favour the Insurance Companies require the Insurers to allow the policyholder to cover their replacement vehicle.

(Assuming it's a vehicle they would normally cover)

Retrogamer

Has the ombudsman set a precedent or rule to how much time should be allocated for the customer to source a replacement vehicle?

dacouch

Retrogamer wrote: »

Has the ombudsman set a precedent or rule to how much time should be allocated for the customer to source a replacement vehicle?

They state

"17. outstanding premium instalments or premium refunds

Most motor insurance policies are yearly contracts – so the full premium is payable even if the vehicle is written off during the year. If the consumer paid the yearly premium upfront, they will not receive any refund. Or if the consumer was paying the yearly premium by monthly instalments, they must still pay the outstanding instalments after the vehicle is written off.

When an insurer declares a vehicle a write-off, we expect it to offer a consumer the option of bringing a replacement vehicle onto the insurance policy so that the remainder of the policy term can be used. Depending on the make and model of the replacement vehicle, an additional premium may be required by the insurer. This should be calculated on a pro rata basis for the remainder of the policy term."

http://web.archive.org/web/20140709160656/http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html

They do not state a maximum amount of days the Insurer can enforce before they cancel the Policy.

This would mean the Insurer would need to justify to the FOS why they think it's fair to the customer to enforce such a restriction.

maddogb

dacouch stop with the sarcasm about my statements on the ombudsman, you are missing the big picture like many sheep on here.
THEY have to be SEEN to be fair ie if they fall under the ratio of 50/50 cases then it is obvious they are not doing the job.
Lets face it if your statement had any substance and the ombudsman was actually a working model
policies would not contain this statement.

dacouch

The Ombudsman has no remit to not fall under a ratio of 50/50, they just rule on what they feel is fair and/or inline with their technical notes and / or their previous case rulings.