cancelling car insurance with claim in progress

cheepskate_2

Hi

Just called for 2nd time to cancel my car insurance and it has left me la little confused.

Called 1st time to cancel old car (new car far too expensive to insure new car with this company) and was told cos there is a unsettled claim that if i cancelled i would need to pay the full amount (at moment i pay monthly)due on the policy for the complete year left.
The claim that is unsettled is not my fault , but cos there is no witnesses it will probably go 50/50, not a huge sum involved approx £300 each for both parties.never cancelled then and I would call back

Called again today to cancell and guy said could not cancel as i had a claim in for repairs to my car , anyway still cant cancel as he now has to go check with first guy see about notes etc.


What i am asking is can a insurance company ask for all the outstanding payments ( eg to make up the full years amount) when i cancel cos there is an outstanding claim., even though it has not been settled yet and they do not know which way it is going .

many thanks

dunstonh

What i am asking is can a insurance company ask for all the outstanding payments ( eg to make up the full years amount) when i cancel cos there is an outstanding claim., even though it has not been settled yet and they do not know which way it is going .

Car insurance is payable in advance for the year. When you pay monthly you are entering into a credit agreement where the insurer is paid in advance and you pay the credit company (or credit arm of the insurer).

You are required to pay the premium in full in a claim where you are liable. Until that liability is resolved, you must continue to pay the monthly premiums. Failure to do so can not only find you getting into with the insurance company but also hit your ablity to get credit in future.

custardy

yup,check your policy docs and it will refer ot premiums being due in the event of a claim