Insurance on replacement vehicle after write-off

PinkPig

Hello,

My partner had an accident last week which resulted in the car being written off - luckily she didn't have any injuries, and no-one else was involved.

We have comprehensive insurance and have received a settlement from the insurer. The insurance policy was due to expire in March. I had assumed this would be the end of the insurance policy since the car was written off, but there seems to be an option to transfer the replacement car onto the policy - does anyone know if this is worth doing and what the advantages/disadvantages would be?

The policy says:

In the event of your car being written off or declared a total loss, your policy will usually come to an end. However we may allow the policy to continue for a period of up to 28 days from the date you receive settlement to allow you to put a replacement car on the policy.

We have received a letter which says:

If you wish to continue with your policy for a replacement vehicle, when you have the details of your new vehicle please contact our Sales and Service Team on 0345 673 0000 to discuss transferring it onto your existing policy for the remaining period. You have 28 days from the date you receive settlement to allow you to put a replacement vehicle on policy.

If we asked them to transfer a new vehicle onto the policy then:

• I guess there would be a cost involved? At the very least I would expect there to be a change in premium (e.g. if the new car is worth more/less than the old one) and an admin fee?
• Would the new car be fully insured on the existing policy? Just for 28 days?
• Is there any reason to do this rather than buy a new insurance policy?

Once we have found a replacement vehicle we will phone them and ask, but in the meantime just wanted to check what options I have.

Before anyone asks, yes I am expecting our premiums to go up significantly as a result of the accident.

Quentin

First check that your intended replacement is acceptable to the insurer (Before you buy it) - if they don't "like" it and you still buy it then you will have to start a new policy elsewhere


Expect there to be an admin fee for making the change as well as any premium change (up or down)


The new car would have exactly the same cover as your old one had


Do dummy quotes online to see if it is worth doing the change or simply starting a new policy (when you know how much they will charge in total for the remaining month)

PinkPig

Thanks - whether or not the replacement is acceptable to the existing insurer (Tesco) would not have a major impact on our decision to purchase, especially given there is only a month and a half remaining on the insurance.

Quentin

No doubt.


But if they don't like it, then all your questions are redundant, (you would have to buy a new policy for the new car)

forgotmyname

Find a car you like and test drive it etc. But before handing over the deposit or paying for it do an online quote with a comparison site then call the insurance with the details and see how much its going to cost and how it compares with a new policy.

With an accident to declare your premium may have risen since your renewal.

Although if you have claimed there maybe no refund from the current policy.

angrycrow

Just spotted this is Tesco, be aware that if you get a quote in advance but only call up to add the car on the day you collect it they will add £100 to£150 on to the premium. You need to arrange the insurance at least 24 hours ahead of the start date for the new car to get sensible rates.

sheramber

We were insured with Tesco when our car was written off.

We replaced it with same model but a newer car and were covered with existing policy. No extra charge.

What was more surprising was at renewal our premium went down, despite them having paid out for the write off.

Dakota_Deville

Hiya
For the sake of remaining within the law and you/family not being insured and new repalcement car not covered - please call your insurance company, and document the time you rang and the person you spoke to as they have recorded calls - good luck

PinkPig

Just thought I would follow up on this - Tesco let us transfer the new vehicle onto the policy until the end of the existing term. There was a small cost due to the difference in premium but no admin fee.