Car Insurance Question

petunia100

I was in a collision recently and it was my fault. I had only just renewed my policy and have paid for the whole year up front. When I get another car can I continue on the same policy or do I loose the whole years money?

spiro

If your car is written off then you are likely to have to start again with insurance but I understand these days it depends on your insurance company. Even it you were paying in installments you could have found you needed to pay the remaining months.

angrycrow

Virtually all insurers will now let you put your new car on the same policy but may charge an admin fee to change the vehicle on cover but again most waive the admin fee when your old car is written off. Gone are the days when an insurer would write your car off and then immediately cancel the policy.

Marvel1

My car was written off, they give me I think 2 months to get a new car transfer policy over, had to pay a. bit extra though due tobthe new car.

flashg67

I believe some insurance companies are still trying to charge for the full year in this type of incident. A friend had this argument shortly after renewing when his car was written off - managed to get the money back after a bit of a struggle.

Quentin

flashg67 wrote: »

I believe some insurance companies are still trying to charge for the full year in this type of incident. A friend had this argument shortly after renewing when his car was written off - managed to get the money back after a bit of a struggle.

Once you make a claim then you do have to pay the full year's premium.

But all companies must allow you to put a replacement car on cover after a total loss though there maybe s time limit on how long you are given to do this.

As always when getting a different car check your insurer is happy to cover it before you buy it.

anniecave

Some providers do cease cover after a write-off. Direct Line as a example:

https://www.directline.com/lib/pdf/dl-car-policy-document.pdf

page 13.

I moved from Direct Line last year partly for that reason.

Quentin

anniecave wrote: »

Some providers do cease cover after a write-off. Direct Line as a example:

https://www.directline.com/lib/pdf/dl-car-policy-document.pdf

page 13.

I moved from Direct Line last year partly for that reason.

You missed the importance of this on ,page 13:-

"All cover ceases unless we agree different"

You will be able to put an acceptable replacement on cover providing you do so reasonably quickly.

The FOS have ruled on this issue in favour of policyholders

angrycrow

anniecave wrote: »

Some providers do cease cover after a write-off. Direct Line as a example:

https://www.directline.com/lib/pdf/dl-car-policy-document.pdf

page 13.

I moved from Direct Line last year partly for that reason.

They will allow you to put a new car on cover. I can confirm this because my car is being written off and I have already put my new car on cover on the same policy. (both cars currently on cover whilst I wait for them to agree the value and collect the salvage).

shayne66

Just had my car written off with Hastings.
I was paying monthly so cost of the renaming months came out of my payout and they have given me 30 days to insure a replacement on my current policy (they said that's the longest length they are allowed to give) or my policy automatically expires.

Aretnap

The Financial Ombudsman is pretty clear on this. Click me. (The link is to an old version of their website as the current one features a "helpfully" simplified version of the guidelines, but the underlying policy has not changes)

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

i.e. Yes, you can transfer the remaining months of your policy to the new car, subject to (a) getting one in a reasonable timeframe (b) it being one that your insurers would normally be willing to cover you to drive and (c) payment of any additional premium that would be due to cover it.

When choosing a replacement car it's worth checking with your insurer beforehand that it's acceptable to them, and what, if any, extra premium will be due.