Cars Insurance Total Loss

Ashers92

Hi All,

I'm looking for some advice before going down the insurance route to repair my car that was hit whilst parked outside my house. No note or anything to enable me to claim so would have to go through my own insurers. It's like it would be a total loss which I'm fine with, considering I was looking to sell the car anyway.

I've just renewed the policy on a pay-monthly basis in the past couple weeks. To my understanding, as a total loss the policy will be cancelled. If this is the case, where do I stand with the monthly payments for the rest of the policy? With the policy cancelled, I'd assume that the payments are no longer required?

Or is it a case of needing to continue the payments to pay of the credit that I've effectively borrowed up front to pay for the insurance cover?

Trying to weigh up if I go down the insurance route or repair privately. Any advice appreciated!

Thanks,

Veteransaver

Is it an actual monthly policy (some insurers do this) or is it just an annual policy which you are paying for monthly?

DullGreyGuy

Ashers92 said:
To my understanding, as a total loss the policy will be cancelled. If this is the case, where do I stand with the monthly payments for the rest of the policy? With the policy cancelled, I'd assume that the payments are no longer required?

Or is it a case of needing to continue the payments to pay of the credit that I've effectively borrowed up front to pay for the insurance cover?

You almost certainly have bought an annual policy and received a loan which you are repaying monthly. Typically in a total loss situation the insurer will deduct the value of the outstanding repayments from the settlement to clear the debt (customers are bad at paying when the threat to cancel a policy has gone). 

The policy however isn't cancelled but suspended, in most cases. You will then have a short window of opportunity to get a new vehicle and transfer the cover to the new vehicle. If you fail to get a vehicle within the required timescales then the policy is cancelled. Each insurers varies slightly on the timescales given but its normally somewhere between 2 weeks and 1 month.