Insurance Cancellation Fee after a no fault write-off?

Rgee

Hello everyone,

Hopefully some of you will be able to help!

My son had motorcycle insurance which he bought through GoSkippy.

Unfortunately he was knocked off of it last May by an 'at fault' third party.

GoSkippy apparently outsources their claims to another company, and it was this company who declared the motorcycle a write-off.
We were surprised that the claim company's information did not seem to get through to GoSkippy, who continued to charge us premiums.

GoSkippy agreed to pay back all the premiums that we paid from the date the total loss was declared BUT - they are now charging us a policy cancellation fee!

Maybe I'm wrong, but it seems to me that the insurance policy has been completed rather than cancelled (hmm...thinking about it now, the third party's insurance company has paid out and not GoSkippy..)

Is it right and fair that we should be charged a policy cancellation fee?

Many thanks,
Rgee

Johno100

Is he not getting another bike he can transfer the policy to?

Quentin

He needs to check his policy wording, but a cancellation fee is the norm if he decided not to continue the policy with a replacement.


Them giving him a refund of the premiums looks a result - it was up to him to cancel his policy!

Rgee

Johno100, due to his injuries, he wasn't fit to ride for several months and so he bought a cheap car instead.

Thanks Quentin - will look at the policy.

bigadaj

Rgee wrote: »

Johno100, due to his injuries, he wasn't fit to ride for several months and so he bought a cheap car instead.

Thanks Quentin - will look at the policy.

Insurance is annual, so the policy fee covers the year normally, whether someone chooses to pay for it monthly doesn't make a difference.

So he's bought an annual policy and chosen to pay monthly, so they'll continue to charge. It's quite unusual to get anything back after making a claim, so sounds like he got a bit of a result.

Billy_Bullocks

bigadaj wrote: »

Insurance is annual, so the policy fee covers the year normally, whether someone chooses to pay for it monthly doesn't make a difference.

So he's bought an annual policy and chosen to pay monthly, so they'll continue to charge. It's quite unusual to get anything back after making a claim, so sounds like he got a bit of a result.

He's not claimed against his policy.

bigadaj

Billy_Bullocks wrote: »

He's not claimed against his policy.

He's made a claim through his policy.

Clive_Woody

Billy_Bullocks wrote: »

He's not claimed against his policy.

But presumably it's a 12 month policy which he has cancelled early so a cancellation fee is applicable (normally). Either he continues with the monthly payments until he completes the contract or he terminates the contract early and pays the appropriate fee.

dacouch

bigadaj wrote: »

He's made a claim through his policy.

He claimed via an Accident Management Company from the third party Insurer not from his own Insurance

just_trying

bigadaj wrote: »

He's made a claim through his policy.

No, but he's cancelled and it's a yearly policy, he decided to pay up.

My son was in a similar situation, bought another bike and his policy was transferred (info only). People need to remember you decided to pay monthly over a year, so if you cancel there will be charges as if you paid for whole year, and cancel but normally when you pay up front it costs less.