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entitlement to cancel policy

rabialioness
Posts: 71 Forumite
following an accident i have had to get rid of my car as it had been written off.
i have been supplied with a courtesy car until the claim is settled (i think). this has been supplied by the legal services.
however the insurance company is not dealing with the claim. the legal services are dealing with it as the accident was not my fault.
can i cancel my insurance policy or do i have an obligation to continue payments until the claim is settled (as i still have the courtesy car although this has its own separate insurance). despite the fact that i do not have the car on which the original insurance was took out, nor have i another car to which the insurance has been transferred.
i hope this is not too confusing ??? ???
i have been supplied with a courtesy car until the claim is settled (i think). this has been supplied by the legal services.
however the insurance company is not dealing with the claim. the legal services are dealing with it as the accident was not my fault.
can i cancel my insurance policy or do i have an obligation to continue payments until the claim is settled (as i still have the courtesy car although this has its own separate insurance). despite the fact that i do not have the car on which the original insurance was took out, nor have i another car to which the insurance has been transferred.
i hope this is not too confusing ??? ???

0
Comments
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With car insurance you are allowed to cancel at any time you want. However, if there has been an accident you get no refund on the year's insurance until the claim has been settled. If you are paying on installments then most likely you will either have to continue paying or the insurance company will ask you to pay the remaining balance in one go.
The reason behind this is that even though you are claimng off the third party, your insurance company were still covering you for the accident and you still have a legal right to claim off them if the third party's insurance company won't pay up, even after you have cancelled the policy.
Your policy wording will state that there is no refund if you claim off your policy (since you could write off a £10,000 car after a week and your insurance company would get very little).
If you do cancel but are allowed to keep up monthly installments, you will get a refund of additional payments made since cancellation if your insurance company recover all costs for your accident.
So, in short, yes, you must keep up repayments until the claim is settled but will get the money refunded when the claim is complete (may take a year or more if you're unlucky).
Al0
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