Car Insurance - Still active after total loss?

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Superscrooge
Superscrooge Posts: 1,171 Forumite
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edited 10 February 2018 at 2:19PM in Insurance & life assurance
My car suffered fire damage after an electrical fault and was written off by the insurance company and they have now paid me the market value of the car.

Today I've found a replacement car I intend to buy.

My original car insurance policy was still valid for another 9 months.

Does anyone know in these circumstances if it is possible to transfer the remainder of the policy to a new vehicle, or after a vehicle is written off, does the remainder of the policy automatically lapse?

I realise there would be an admin fee to change vehicle details. But if it was possible to make use of this remaining 9 months it would be cheaper than taking out a new annual policy

There is nothing in my insurance T&C's that answers the question and I've tried to phone my insurance company but they don't work weekends!
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  • agrinnall
    agrinnall Posts: 23,344 Forumite
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    I think not, my understanding is that on total loss the policy comes to an end, so you'd need to buy a new policy for the new vehicle. But it's not my area of expertise so hopefully someone who can give you a definitive answer will come along soon.
  • rs65
    rs65 Posts: 5,682 Forumite
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    The insurer will give you a reasonable time to replace the car on the policy. There is an ombudsmen decision on this.
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    I had a total loss with Aviva on 29 March and they suspended cover and then covered the next vehicle I bought on 20 April until the policy year end in June.

    It has been the norm for the policy to end once a total loss has taken place but some insurers seem more enlightened than others.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Superscrooge
    Superscrooge Posts: 1,171 Forumite
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    Thanks for the replies. I'm insured with AXA. I'll phone them Monday morning and see what they say
  • sheramber
    sheramber Posts: 19,131 Forumite
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    Tesco gave us a month to replace the car on the same insurance policy.
  • EdGasketTheSecond
    EdGasketTheSecond Posts: 2,558 Forumite
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    Why should you be put under any pressure to replace your car within a month? If you have paid for a year's insurance than that is what it is reasonable to expect to get.
  • Norman_Castle
    Norman_Castle Posts: 11,871 Forumite
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    EdGasketTheSecond wrote: »
    Why should you be put under any pressure to replace your car within a month? If you have paid for a year's insurance than that is what it is reasonable to expect to get.
    The insurance is for the car you no longer own. Change of circumstances so the policy can change.
  • EdGasketTheSecond
    EdGasketTheSecond Posts: 2,558 Forumite
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    People are allowed to change cars you know; doesn't mean the insurer can cancel the policy without refunding you.
  • paddyandstumpy
    paddyandstumpy Posts: 1,486 Forumite
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    EdGasketTheSecond wrote: »
    People are allowed to change cars you know; doesn't mean the insurer can cancel the policy without refunding you.

    But the OP doesn't have a car to change to. As previously posted there is no car to insure, therefore the policy can't continue 'open' until renewal. It's normal to get 4 weeks to find a replacement.

    If the policy is cancelled don't expect any money back, you've had the contract fulfilled with the payout from the car already.
  • EdGasketTheSecond
    EdGasketTheSecond Posts: 2,558 Forumite
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    edited 13 February 2018 at 10:19AM
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    The ombudsman has ruled that insurers can no longer cancel a policy on a total loss. If you pay for 12 months insurance than that is what you get. Whether you choose to buy another car and make use of the remainder of insurance is up to you; they cannot cancel what you've paid for.

    "When an insurer declares a vehicle a write-off, we expect it to offer a consumer the option of bringing a replacement vehicle onto the insurance policy so that the remainder of the policy term can be used. Depending on the make and model of the replacement vehicle, an additional premium may be required by the insurer. This should be calculated on a pro rata basis for the remainder of the policy term."

    http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html
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