Car Insurance HELP, written off car still paying insurance is that right??

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  • Tammykitty
    Tammykitty Posts: 1,005 Forumite
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    edited 21 August 2018 at 10:30AM
    I was able to change my insurance over to my new car after my previous one was written off - I don't think you should have to have 2 policies as you have a new car.


    Did you ask them to transfer the policy to the new car?


    PS - I pay my insurance annually, but only paid an admin fee for changing the car
  • societys_child
    societys_child Posts: 7,110 Forumite
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    What is special about car insurance that it needs to work in this way?
    Nothing special about it, you opted to buy a years insurance on the tick, and repay this loan monthly (similar to any other loan)



    You could insure monthly if you wish, but it'd be far, far more expensive.
  • sheramber
    sheramber Posts: 19,096 Forumite
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    When you opt for monthly premiums on an annual policy you take out credit for the annual amount. The insurance company get the full annual amount and you make monthly credit payments to cover that amount.

    If your own insurance company had paid out for the car they would have deducted the remaining premiums from the sum they paid you.

    However, you normally get a time to transfer the policy to a new car and continue to make the monthly premiums.
  • cajef
    cajef Posts: 6,266 Forumite
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    Clifford_Pope wrote: »
    You can take out a year's road fund licence in advance. If you write the car off you get the proportionate amount of money back.
    What is special about car insurance that it needs to work in this way?

    You get a refund for your road fund licence because it is not used for the remaining time after the car is written off.

    You pay car insurance in case of an accident in any twelve month period, your insurance has had a claim which they have paid out so the insurance has been used to fund that claim for X number of pounds, possibly several thousand if a third party has been involved.
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