LV misinformation

TeeZZ

Hey All,
Today I sold my car, however, prior to this, I called my insurer (LV) to ask whether it would pose any problems for me as I have an outstanding claim.
The lady said there would be no problems and the only payment I had to make was the current months monthly payment and I would not get a refund due to my outstanding claim. I double and triple checked with her about paying any cancellation fees etc. to which she said I am okay to go on and sell my car. She confirmed and said I could pay the outstanding monthly payment before 8pm. I told her Id give her a call back soon.
At this point I had not completed the V5c etc and she said she would close the claim after an hour so I could drive the vehicle to the new keeper's home.
So I proceeded with the sale and have just been off the fone with LV.

They have now said that I would have to pay the rest of the insurance (10 monthly payments) as I had a claim on my insurance.

I understand now that this is the norm for an Insurance policy after having a search on google. HOWEVER, had the lady told me at that time I would've transferred the insurance on to another vehicle.

The man who I spoke with now has given me the name and number of the employee I spoke with and told me to call to ask and speak to her tomorrow.

What rights do I have?

FutureGirl

You can put a new vehicle on the policy, if you don't then policy can't stay in effect as you've sold the vehicle and no longer have an interest in the vehicle.

As you've had a claim, the remaining 10 months of the policy will need to be paid. It most likely tells you this in the policy booklet - did you read this?

DoaM

Remember that when you pay monthly all you're doing is paying off a loan ... the insurance was still paid upfront. That's why you don't get a pro-rata refund if you cancel insurance.

TeeZZ

I'm aware of this now, however, my point is that if the lady had told me over the phone my outstanding balance I would not have proceeded with sale. Or at the very least I would have transferred it onto another vehicle.

I've just gotten off the phone with LV again and they've said that the manager will listen to the call recording tomorrow and give me a call back and if any wrong info was given on LV's part they will have to sort it out. The man on the phone was very sympathetic.

forgotmyname

Either get another car quick or expect a bill for the premium minus a bit as an apology for the wrong info.

chrisw

This is a really basic issue of car insurance, I would be very surprised if an employee was not aware of it. I suspect there has been some misunderstanding, either by them of what you were asking, or you of what they were saying.