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  • FIRST POST
    • Superscrooge
    • By Superscrooge 10th Feb 18, 1:00 PM
    • 1,081Posts
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    Superscrooge
    Car Insurance - Still active after total loss?
    • #1
    • 10th Feb 18, 1:00 PM
    Car Insurance - Still active after total loss? 10th Feb 18 at 1:00 PM
    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!
    Last edited by Superscrooge; 10-02-2018 at 1:19 PM.
Page 1
    • agrinnall
    • By agrinnall 10th Feb 18, 1:47 PM
    • 20,117 Posts
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    agrinnall
    • #2
    • 10th Feb 18, 1:47 PM
    • #2
    • 10th Feb 18, 1:47 PM
    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
    • By rs65 10th Feb 18, 2:00 PM
    • 5,345 Posts
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    rs65
    • #3
    • 10th Feb 18, 2:00 PM
    • #3
    • 10th Feb 18, 2:00 PM
    The insurer will give you a reasonable time to replace the car on the policy. There is an ombudsmen decision on this.
    • kingstreet
    • By kingstreet 10th Feb 18, 3:34 PM
    • 33,347 Posts
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    kingstreet
    • #4
    • 10th Feb 18, 3:34 PM
    • #4
    • 10th Feb 18, 3:34 PM
    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
    • By Superscrooge 10th Feb 18, 4:15 PM
    • 1,081 Posts
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    Superscrooge
    • #5
    • 10th Feb 18, 4:15 PM
    • #5
    • 10th Feb 18, 4:15 PM
    Thanks for the replies. I'm insured with AXA. I'll phone them Monday morning and see what they say
    • sheramber
    • By sheramber 10th Feb 18, 5:35 PM
    • 4,670 Posts
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    sheramber
    • #6
    • 10th Feb 18, 5:35 PM
    • #6
    • 10th Feb 18, 5:35 PM
    Tesco gave us a month to replace the car on the same insurance policy.
    • EdGasketTheSecond
    • By EdGasketTheSecond 10th Feb 18, 8:24 PM
    • 550 Posts
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    EdGasketTheSecond
    • #7
    • 10th Feb 18, 8:24 PM
    • #7
    • 10th Feb 18, 8:24 PM
    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
    • By Norman Castle 10th Feb 18, 9:26 PM
    • 6,944 Posts
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    Norman Castle
    • #8
    • 10th Feb 18, 9:26 PM
    • #8
    • 10th Feb 18, 9:26 PM
    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.
    Originally posted by EdGasketTheSecond
    The insurance is for the car you no longer own. Change of circumstances so the policy can change.
    Don't harass a hippie. You'll get bad karma.

    Never trust a newbie with a rtb tale.
    • EdGasketTheSecond
    • By EdGasketTheSecond 12th Feb 18, 10:19 PM
    • 550 Posts
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    EdGasketTheSecond
    • #9
    • 12th Feb 18, 10:19 PM
    • #9
    • 12th Feb 18, 10:19 PM
    People are allowed to change cars you know; doesn't mean the insurer can cancel the policy without refunding you.
    • paddyandstumpy
    • By paddyandstumpy 13th Feb 18, 6:31 AM
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    paddyandstumpy
    People are allowed to change cars you know; doesn't mean the insurer can cancel the policy without refunding you.
    Originally posted by EdGasketTheSecond
    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
    • By EdGasketTheSecond 13th Feb 18, 9:14 AM
    • 550 Posts
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    EdGasketTheSecond
    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
    Last edited by EdGasketTheSecond; 13-02-2018 at 9:19 AM.
    • elsien
    • By elsien 13th Feb 18, 9:18 AM
    • 16,367 Posts
    • 41,371 Thanks
    elsien
    My insurance company refused to re-insure me on a new car last month following an accident and my original car being written off, and no rebate. The only "concession" I got was to not have the admin fee for cancelling the policy charged. Where would I stand with this on the Ombudsman front? It was only a few weeks, so I've not lost much but I'm curious to know if they've acted correctly.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • EdGasketTheSecond
    • By EdGasketTheSecond 13th Feb 18, 10:15 AM
    • 550 Posts
    • 303 Thanks
    EdGasketTheSecond
    I'd say your insurance company were in the wrong. You could make a complaint, refer them to the above ombudsman link and if they still won't compensate you, refer it back to the ombudsman. Which company was it?
    • agrinnall
    • By agrinnall 13th Feb 18, 12:51 PM
    • 20,117 Posts
    • 15,840 Thanks
    agrinnall

    "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
    Originally posted by EdGasketTheSecond

    I can't see the quote you've provided anywhere in that link.
    • Aretnap
    • By Aretnap 13th Feb 18, 3:40 PM
    • 2,962 Posts
    • 2,481 Thanks
    Aretnap
    I can't see the quote you've provided anywhere in that link.
    Originally posted by agrinnall
    It's in older versions of the guidance, eg.

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

    The current webpage has had most of the useful information removed in an attempt to make it more "consumer-friendly", but AFAIK the underlying policy is still the same.
    • Aretnap
    • By Aretnap 13th Feb 18, 3:44 PM
    • 2,962 Posts
    • 2,481 Thanks
    Aretnap
    My insurance company refused to re-insure me on a new car last month following an accident and my original car being written off, and no rebate. The only "concession" I got was to not have the admin fee for cancelling the policy charged. Where would I stand with this on the Ombudsman front? It was only a few weeks, so I've not lost much but I'm curious to know if they've acted correctly.
    Originally posted by elsien
    That would depend - was it the same make/model of car, and if not was it one that they would normally have been willing to insure you to drive? If so then they should have allowed you to bring a new vehicle onto the policy (possibly with a bit of extra premium). However if it was not a car they would normally have covered you to drive at all they would have been entitled to refuse to tgransfer the policy.
    • paddyandstumpy
    • By paddyandstumpy 13th Feb 18, 4:04 PM
    • 1,032 Posts
    • 509 Thanks
    paddyandstumpy
    Which is digressing from the OP - which is how long does one have to put a new car on cover...
    • EdGasketTheSecond
    • By EdGasketTheSecond 13th Feb 18, 4:33 PM
    • 550 Posts
    • 303 Thanks
    EdGasketTheSecond
    Which is digressing from the OP - which is how long does one have to put a new car on cover...
    Originally posted by paddyandstumpy
    I'd say until the policy you paid for expires; i.e. up to 12 months if you paid for 12 months.
    • elsien
    • By elsien 13th Feb 18, 6:24 PM
    • 16,367 Posts
    • 41,371 Thanks
    elsien
    That would depend - was it the same make/model of car, and if not was it one that they would normally have been willing to insure you to drive? If so then they should have allowed you to bring a new vehicle onto the policy (possibly with a bit of extra premium). However if it was not a car they would normally have covered you to drive at all they would have been entitled to refuse to tgransfer the policy.
    Originally posted by Aretnap
    Newer version of the one I killed, your bog standard skoda fabia. I asked if a different car would make a difference and was told no, it was because of my claims. The accident I had, plus 2 windscreen replacements in the last 5 years. No other accidents, penalty points, driving convictions or anything else.
    I was less than impressed with the decision. The company was the co-op - CIS

    With apologies to the OP for hijacking the thread.
    Last edited by elsien; 13-02-2018 at 6:27 PM.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
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