Cancelling insurance, outstanding claim in progress

motorguy

Ok, so my son had a very minor knock earlier in the year and of course this led to a whiplash claim from the other party.

He has as of yesterday sold the car, as hes moving abroad for a couple of years and thus wants to cancel the insurance.

The insurance company have told him there is still an open claim against his account and he / we are a bit jumpy about cancelling the insurance in case that exposes him to any claim risk from the other party.

He can just continue the insurance - it expires naturally in December. He pays £130 a month for the insurance and they're looking for £330 to close the insurance off now, so theres only a small benefit financially in cancelling.

So, summarising, is there any risk of him cancelling his insurance, with an open claim ongoing?

Thanks in advance!

wongataa

As your son no longer has the car he has to tell the insurance company and cancel the policy and pay the required fees. This shouldn't stop the claim process as he will be paying off the full year's cost of the insurance (car insurance is bought yearly even if paid for monthly).

Warwick_Hunt

Yes, as there's a claim surely he need to pay for the full year and isn't due any refund.

wgl2014

I can't see there is, surely all that matters was that at the time of the incident he was covered.

missile

Your son needs to tell insurer he has sold the car asap.

There was a recent post from a.n.other who did not cancel. OP's insurer became liable for 3rd party damage when the new owner had an accident whilst he was driving without insurance :-(

AdrianC

Given that the policy expires in December, there's not going to be any refund worth talking about anyway. But he definitely needs to inform the insurer that he no longer has the vehicle, and they are off-risk. Otherwise, they - and thereby he - are still on hook as the MIB insurers of record if the purchaser doesn't cover the car themselves...

Shaka_Zulu

There wouldn't be a refund anyway once a claim has been made so might as well either keep paying monthly or accept their offer of paying a lump sum of £330.

motorguy

Folks, thanks for all your replies. Theres a consistent message across all of them and i've passed that on to my son.

fiisch

Just to clarify - what matters is he was insured on the date of the incident. If someone makes a claim in five years time (unlikely!) relating to personal injury from the accident, his insurer at the time of the accident would be called upon to deal with the claim.

That said, cancelling the policy mid-term with an open (and sounding like it will be a fault claim) will mean that the policy will need to be paid up in full.

debtdebt

A lot of people chatting rubbish here.

As long as your son was covered on the day of the accident and wasn't behind with his payments at the time, the insurer will have to deal with the insurance claim as normal. As long as he cancels his insurance properly and is up to date with payments there is no problem.

arcon5

debtdebt wrote: »

A lot of people chatting rubbish here.

As long as your son was covered on the day of the accident and wasn't behind with his payments at the time, the insurer will have to deal with the insurance claim as normal. As long as he cancels his insurance properly and is up to date with payments there is no problem.

Lol :rotfl:
Everybody has just said just this.
Maybe reread the replies