Insurance help

nette-lou

Hi

So at the end of September 2019 i had my very first car finance and all was well until i was hit by a bus who was running a red on 3rd December 2019.

It was deemed a write off on 19th Deceomber 2019.
The finance side doesn't bother me, the payout went to them and I had GAP to cover the rest so the finance is paid off.

Anyway, long story short i cannot afford another car and do not want finance again.

My question is that since the payout my insurance company has written to me and told me I have 28 days to either swap the policy to a new vehicle or cancel, but if i cancel i still have to pay the full years premium.

The car has been collected by the insurances salavage agents (as it was deemed a CAT S write off) and has been transferred from my ownership with the DVLA (i received the small slip they send within 3 days of the settlement being paid out) so i have proof i am no longer the owner as far as the DVLA is concerned.

I asked the local CAB who told me that to contiue to pay insurance on a vehicle i do not own is classed as 'fronting' and can be deemed as an illegal act! So i called my insurers back and they are adament that even though they have 'paid me out' (it all went to the finance company) they have not received a response from the other party (even telling me that the bus company insurance wasn't even aware of the accident becuase they like to deal with things 'in house') and because of that i MUST continue to pay my monthly installments.

Now when you call and cancel a policy becuase you sell a car or whatever they don't expect you to continue with payments, in fact if you've overpaid they refund you, so why am i being told i MUST continue to pay for insurance for a vehicle i no longer own, or have possession of?

Any help would be greatly appreciated!

Car_54

You can only cancel a policy and get a refund provided you haven't made a claim. You have, and it seems your insurer hasn't been able to recover their costs from the other party.
You should be pressuring your insurer to contact the bus company, not their insurer. Or do so yourself.
Good luck!

Scrapit

nette-lou wrote: »

Hi

So at the end of September 2019 i had my very first car finance and all was well until i was hit by a bus who was running a red on 3rd December 2019.

It was deemed a write off on 19th Deceomber 2019.
The finance side doesn't bother me, the payout went to them and I had GAP to cover the rest so the finance is paid off.

Anyway, long story short i cannot afford another car and do not want finance again.

My question is that since the payout my insurance company has written to me and told me I have 28 days to either swap the policy to a new vehicle or cancel, but if i cancel i still have to pay the full years premium.

The car has been collected by the insurances salavage agents (as it was deemed a CAT S write off) and has been transferred from my ownership with the DVLA (i received the small slip they send within 3 days of the settlement being paid out) so i have proof i am no longer the owner as far as the DVLA is concerned.

I asked the local CAB who told me that to contiue to pay insurance on a vehicle i do not own is classed as 'fronting' and can be deemed as an illegal act! So i called my insurers back and they are adament that even though they have 'paid me out' (it all went to the finance company) they have not received a response from the other party (even telling me that the bus company insurance wasn't even aware of the accident becuase they like to deal with things 'in house') and because of that i MUST continue to pay my monthly installments.

Now when you call and cancel a policy becuase you sell a car or whatever they don't expect you to continue with payments, in fact if you've overpaid they refund you, so why am i being told i MUST continue to pay for insurance for a vehicle i no longer own, or have possession of?

Any help would be greatly appreciated!

In the event of a claim you will always need to pay the insurance because you have had and used the insurance. Think of it as the total price rather than instalments. The product the insurance cost Xpounds. You have used and benefited from it and therefore have had your moneys worth and so so pay for the product. Usually this is taken into account when the pay out comes, e.g. figure to pay out Y, figure you receive is Y-X(the cost of the insurance) in very simple terms. You need to pay cost you've had the insurance.

neilmcl

As others have said, this is standard practise after you've made a claim.

Ectophile

The advice from the CAB was rubbish. Fronting is where you insure a car in your name, with somebody else as a named driver, but you know that the other person is the one who will really be using it the most.


Your car has been written off. Nobody will be driving it now.


Unless you specifically took out a short term insurance policy, then you had a one year policy, paid off in installments. The insurance has paid out, so they want the rest of the year's payments.


Cancelling a policy is different. The insurance hasn't been claimed on, so you get a partial refund on the year's policy. This may cancel out the remaining payments owed, give or take any cancellation fees.