Car insurers refused to insure my new car

Mazholenj

Really need advise guys, my son was in an accident, which the car was totally written of. When he first reported the accident, the guy on the phone said the car sounded like it was a writ off, but he said that when the time comes and my son purchased another car, the policy would be transferred over to the new car as long as it was done within 30 days (The old car was only insured in the September, accident happened in the October, full year paid up front). The insurance company paid out for the market value of the written off car no problem, but when the new car was purchased 20 days later the insurance company would not insure it, and refused to give the remaining premium back apart from £25 pounds, is this right?

[Deleted User]

Sounds correct. If they would not normally insure the vehicle you bought then you can't force them to insure it. Usually, your policy ends once you make a claim for a total write off, so that would explain why you won't get a refund on your old policy.

Sea_Shell

What did you have and what have you changed to?

Mazholenj

It was a 59 plate mazda 2, fully insured for the year from the September costing £424 for the year, paid the full year upfront. The accident was approx 4 weeks later, the new car is a seat arona 69 plate. What I don’t understand though is the bloke saying as the policy was new, we could insure the new car and just pay the difference if any from the valid policy as we were just changing car details. However as I said previously they would not insure the new car and we would not be getting any of the premium back apart from £25 🤔

Mazholenj

Do you not get back any of the premium, I thought if anything it would just be a cancellation fee

Sea_Shell

Technically, you're not entitled to any return premium, as you've made a claim and the policy had paid out. It's done its job!

They are entitled to charge you a whole new annual premium for any new car, or refuse cover if the new car doesn't fit their risk profile ( higher group/newer car)

Some insurers will waive this and let you do a change of vehicle, with just a pro-rata AP. MoreThan did for me.

Your new car is much newer, how does it compare in engine/performance or grouping? Is it an FR version!!?

Aretnap

Unfortunately not. As the policy has already paid out a claim it has basically served its purpose and no refund will be due if it is cancelled after a claim has been made.

In days gone by a policy automatically came to an end with no refund when a car was written off. The Financial Ombudsman decided a few years ago that was unfair, and started to demand that the insurer allow the customer to transfer the remaining months of the policy to a new car, provided they get a new car in a reasonable amount of time. However if the car is a more expensive one to insure the insurer is still allowed to charge the difference in premium... and if it's one that they would not normally insurer at all then they don't have to allow the transfer.

I can see why you think this is unfair (and I tend to agree) but unfortunately it's how things are. So when buying a new car in this situation it's best to check with the insurer in advance that they'll insurer it and what they will charge... not that it's much help now

Aretnap

Sea_Shell wrote: »

They are entitled to charge you a whole new annual premium for any new car...
Some insurers will waive this and let you do a change of vehicle, with just a pro-rata AP. MoreThan did for me.

As above this is not quite correct - the Ombudsman requires that the insurer allows the transfer, but only if the new car is one that they would otherwise be willing to insure the customer to drive.

Sea_Shell

Thanks for the correction...good old Ombudsman!!

dacouch

Does your Insurer offer cover for this particular car for normal customers?

If so then as Arenap has explained they should provide cover until the end of the policy

cajef

The thread title refers to the insurance company refusing to insure my new car then you state that it is your sons car.

Mazholenj wrote: »

but he said that when the time comes and my son purchased another car, the policy would be transferred over to the new car as long as it was done within 30 days

Who is insuring the vehicle you or your son and who is down as the main driver of the vehicle?