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  1. #1
    nannieali's Avatar

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    Default car insurance

    My son has just written his car off and the insurance people have offered him £1000. Minus 250 excess, minus 675 as they pay monthly and so havent paid for all their insurance yet!!!!!!!!!!!!!!!!! so they will pay them £75!!. Can they do this?????
    They also said "but if you take out insurance with us on your new car we will give you £750 for the car you wrote off.
    Sounds a bit like black mail to me!!!!!!!!!!!!!!!!! can anyone tell me is this legal.
    nannie ali

  2. #2
    wales01man's Avatar

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    Default Re: car insurance

    we had the same in 2003 with a car written off we started a new policy with the same insurers and the rest of the years payment from the writeoff was deducted from premium is it legal or correct someone on here will know

  3. #3
    bluebottle's Avatar

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    Default Re: car insurance

    Check the policy document to see if they can do this. If not, start getting tough with them.
    Life is a journey on which we all travel, sometimes together, but never alone.

  4. #4
    the hawk's Avatar

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    Default Re: car insurance

    Umm Blue bottle are you saying that insurance companies can only offer to pay out if you pay by monthly debit only if you renew with them? by eck no wonder kids drive around with no insurance! and just think of the amount of people paying by direct debit and driving vehicles are in for a big shock! eh? Maybe a line to the Insurance ombudsman and watchdaog is in order on that one!

  5. #5
    TUTTSI's Avatar

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    Default Re: car insurance

    I would say Nanniali that they can do this as it is correct what the insurers have done, the remainder of the full outstanding premium would have to be deducted from any award as a write off as a total payout then cancels the policy once paid. Therefore, whats to stop anyone not paying for the whole policy premium?

    A new policy has to be taken out once a new vehicle is purchased.

    Quote Originally Posted by nannieali View Post
    My son has just written his car off and the insurance people have offered him £1000. Minus 250 excess, minus 675 as they pay monthly and so havent paid for all their insurance yet!!!!!!!!!!!!!!!!! so they will pay them £75!!. Can they do this?????
    They also said "but if you take out insurance with us on your new car we will give you £750 for the car you wrote off.
    Sounds a bit like black mail to me!!!!!!!!!!!!!!!!! can anyone tell me is this legal.
    nannie ali

  6. #6
    the hawk's Avatar

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    Default Re: car insurance

    Tuttsi how can that be correct? what about if you have been with the same company for a number of years and always paid by direct debit, are you saying you shouldnt have an accident until the last payment has been paid for that year?? I think not. I personally think if this has been passsed "under the counter" as a way of insurance companies ducking payments when people use a direct debit sytem of payment then that is wrong. As insurance companies are already levying people who pay by direct debit (yes i know this was a past governmentts tax raising ruse) but that really is a kick in the teeth eh? If what you say is correct going to the press on this subject would have every motorist in the country up in arms dont you think?

  7. #7
    TUTTSI's Avatar

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    Default Re: car insurance

    Please check the Terms and Conditions, from my time working in the car insurance industry as a broker the premiums always have to be fully paid when there is a total loss. If they paid a total loss claim and the amount of premium is outstanding for that year then they have to recover that from the claim.

    I know it does not seem harsh and unfair to you, but look at the otherside of the coin, if someone has only paid say 50% of the premiums and it was a total loss claim - would that person continue paying DD's to make up that premium to it's full value for the year when there is no car to cover.



    Quote Originally Posted by the hawk View Post
    Tuttsi how can that be correct? what about if you have been with the same company for a number of years and always paid by direct debit, are you saying you shouldnt have an accident until the last payment has been paid for that year?? I think not. I personally think if this has been passsed "under the counter" as a way of insurance companies ducking payments when people use a direct debit sytem of payment then that is wrong. As insurance companies are already levying people who pay by direct debit (yes i know this was a past governmentts tax raising ruse) but that really is a kick in the teeth eh? If what you say is correct going to the press on this subject would have every motorist in the country up in arms dont you think?

  8. #8
    the hawk's Avatar

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    Default Re: car insurance

    But surely that is the reason for taking out Car insurance in the first place? Its to ensure that if you have an accident you recover the cost of a replacement vehicle ( i know there is always are other costs involved as well) thats the reason they ask you for your valuation of the vehicle your insuring. Which is daft as they should let you know what they say the market price is as thats all they will normally pay out. But then to find that they are going deduct "future" payments if you have an accident half way / three quarter way through the policy beggars belief ! are you saying that when going on price comparison sights for vehicle insurance you should put in " what do i get if i write my car off in 3 months time??" lol . IMHO you pay for insurance to cover you in just these cases and hopefully "fully comprehensive" which when i last used a dictionary meant, All inclusive, complete, far reaching, thorough.. need i go on lol Its not my polisy in this case but i will be looking at mine now this subject is raised Thanks Nannieali lol (Standby insurance companies and minister of transport, Insurance ombudsman if mine contains this clause!) lol

  9. #9
    TUTTSI's Avatar

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    Default Re: car insurance

    It is still an annual premium and paying say for 3 months the policy is not fully paid.

    I know you do not agree with me but you have to read the terms and conditions of paying by DD when you signed up.

    You should phone one or two reputable companies like Aviva or RSA and ask them that question if you took out a policy and paid by DD, what happens in that event and see what they say.

    I don't make the rules, I just know from my dealings with insurance Companies in the past it is 100% in the Terms and Conditions if for some reason it is not there, you have a good case to recover that money.

    Quote Originally Posted by the hawk View Post
    But surely that is the reason for taking out Car insurance in the first place? Its to ensure that if you have an accident you recover the cost of a replacement vehicle ( i know there is always are other costs involved as well) thats the reason they ask you for your valuation of the vehicle your insuring. Which is daft as they should let you know what they say the market price is as thats all they will normally pay out. But then to find that they are going deduct "future" payments if you have an accident half way / three quarter way through the policy beggars belief ! are you saying that when going on price comparison sights for vehicle insurance you should put in " what do i get if i write my car off in 3 months time??" lol . IMHO you pay for insurance to cover you in just these cases and hopefully "fully comprehensive" which when i last used a dictionary meant, All inclusive, complete, far reaching, thorough.. need i go on lol Its not my polisy in this case but i will be looking at mine now this subject is raised Thanks Nannieali lol (Standby insurance companies and minister of transport, Insurance ombudsman if mine contains this clause!) lol

  10. #10
    BBNB's Avatar

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    Default Re: car insurance

    It seems obvious to me. A car insurance company does not have to accept payments spread out over the year. In effect you haven't paid for the insurance that you are claiming against!

  11. #11
    alham's Avatar

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    Default Re: car insurance

    I am afraid it is completely correct - the insurance costs £x, spread over 12 months, say, payable at £y per months. So when a total loss occurs, whether you paid x as one off payment or six payments of y you will still owe six payments of y. BTW the policy will continue until the expiry date - so, for example, you buy back written off vehicle, repair it it will be covered by the same policy!!! However , I am more interested in their offer of of £750 off the new car? Press them on this, you may be able to get a better deal, otherwise make sure that any offer made is in writing.

  12. #12
    the hawk's Avatar

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    Default Re: car insurance

    Ok at least it sorta makes sense (sneaky B**T**D's) lol so heres the next one lets figuire Nanniealis predicament eh? how can she claim for her loss of vehicle which the insurers were insuring as now all she has is £75 no car and a promise that the insurance price will be dropped by £700 pound?? tell you what there must be some rich people here if they just shrugg there shoulders and can afford to lose the cost of a vehicle. ( Please send what you have spare to me!) but hey watchdog and the papers will be informed on this scam!

  13. #13
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    Default Re: car insurance

    it does leave a bitter taste in the mouth but its the way insurers operate I sat the ACII exam a few years ago (failed) and this was one of the questions that came up . It is scammy but legal just so sorry we couldn't help in the way you wished.

  14. #14
    TUTTSI's Avatar

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    Default Re: car insurance

    Quote Originally Posted by the hawk View Post
    Ok at least it sorta makes sense (sneaky B**T**D's) lol so heres the next one lets figuire Nanniealis predicament eh? how can she claim for her loss of vehicle which the insurers were insuring as now all she has is £75 no car and a promise that the insurance price will be dropped by £700 pound?? tell you what there must be some rich people here if they just shrugg there shoulders and can afford to lose the cost of a vehicle. ( Please send what you have spare to me!) but hey watchdog and the papers will be informed on this scam!
    The car was a write off whose fault was it, are you able to recover the excess from a third party in connection with this accident and therefore recover this excess and for any injuries?

    Are you sure that the car is worth £1000 have you checked and have you agreed that sum of money and have you checked that is the book value?

    I would say this is NOT A SCAM and you are barking up the wrong tree, for heavens sake check those terms and conditions as I have said on an earlier thread. I am sure Watchdog and the papers wont be remotely interested.

    You have been given advice and this has been explained to you in detail and you are still not understanding how the insurance works.

    Tt really iss not the insurers fault that if the car was only worth a grand and there was an excess to be paid and a balance of the outstanding on the premium.

  15. #15
    emdee1980's Avatar

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    Default Re: car insurance

    I guess a simple way of putting this is if you were to buy a car on finance, the car is in fact not actually yours until the last payment has been made

  16. #16
    Bill-K's Avatar

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    Default Re: car insurance

    I dunno. I recently stopped insurance on a car 'mid-term,' and did so by cancelling the Direct Debit and informing the insurer that the 'risk' had ceased. I was not forced to continue paying my monthly instalments for the rest of the year. It may well have become 'accepted' that we pay our car insurance in one-year 'chunks,' but I don't think that is now any more 'acceptable' than the old 'accepted' charge of £25 to £39 for bouncing a cheque. Once a car is written-off, then the insurance 'risk' ceases to exist. So the underwriters get a full year's premium for just 6 months cover ?

    I don't think so. We have been programmed over the years to accept such things as 'grace and favour' privileges, when in fact we are being ripped off all along. It may well be 'custom and practice,' - but I really don't think we should be accepting that without a challenge. NOT here - of all places !!!

    Being 'allowed' to spread the cost of an upfront yearly premium over 12 months in NOT a favour, IMO. It is a loan - just like front-loaded PPI is - and it is subject to loan interest. Writing off the car effectively returns the remaining 'goods or service' back to the supplier, in that the risk ceases to exist - and the 'loan' is paid off early.

  17. #17
    IanM's Avatar

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    Default Re: car insurance

    I would have thought that if you took out a years insurance and you paid by installments and then after 3 months you wrote off the car then the insurance would be cancelled the same as if you sold your car and cancelled the insurance. They must not be able to charge you a full years insurance for a 3 month period just because you just happened to have an accident.

    I would keep pushing them to give you your £675 back.

  18. #18
    TUTTSI's Avatar

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    Default Re: car insurance

    Ian you are so very wrong on this occasion. Let the poster check the terms and conditions as I have asked them to do and also answer my questions and then we can see what more can be done.

    Quote Originally Posted by IanM View Post
    I would have thought that if you took out a years insurance and you paid by installments and then after 3 months you wrote off the car then the insurance would be cancelled the same as if you sold your car and cancelled the insurance. They must not be able to charge you a full years insurance for a 3 month period just because you just happened to have an accident.

    I would keep pushing them to give you your £675 back.

  19. #19
    Bill-K's Avatar

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    Default Re: car insurance

    I expect the T&C's will probably support your assertion, Tuttsi. What I think Ian and I are saying is that these are UNFAIR T&C's - and, as such, they should be challenged by the likes of us guys, and NOT just accepted as 'custom and practice.' We did it with penalty charges, didn't we ? The banks had to re-draw their agreements. We're doing it with PPI, now. Who's next ?

    Car insurers ?

    Why not ?

  20. #20
    enaid's Avatar

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    Default Re: car insurance

    Car Insurance when bought, is unless stated a YEARLY POLICY and you pay it in monthly instalments if you so wish and the company allows you to do so.
    You are not purchasing a policy until I have an accident and the car is written off.
    If you are paying monthly it does not mean that your car has been insured for that month and if you have an accident in that month all your policy is paid up.
    If you want car insurance month by month then I am sure some insurance company would oblige but I should imagine you will have to pay over and above what a normal yearly insurance costs.
    That's my view, after all if you bought something from a catalogue and you lost it the week after you got it do you think you would not have to pay what you still owed for the goods?
    Last edited by enaid; 30th May 2012 at 05:19:AM.

  21. #21
    TUTTSI's Avatar

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    Default Re: car insurance

    Bill it is NOT an unfair T&C's as much as a lot of you here all believe it is.

    You if you purchase an annual policy say cost is £1000 but they agree to let you pay this over say 12 months. You have only paid 3 months when you have a crash and a total write off so only say £250 has been paid. Now your insurance cost £1000 for this risk why should they pay out on only receiving £250 for this risk when they are 75% down on that risk.

    Maybe a fair way would be if this was the scenario that the insurers only paid pro-rata to what has been received. So on this basis say the claim is £2000 and they have only paid £250 which is a quarter so then they could pay £500 less any excess that was agreed on the T&C's. I personally do not think this way would work which I have just described as a lot of people will be worse off if their car was worth far more.

    I agree with Enaid you can I suspect buy monthly insurance and not an annual policy which the risk would be that much greater so the monthly premiums would be very expensive and most people wont take on a comitment like that unless they are not keeping the car on the road for the whole year an it suits them to pay over the odds.

    Unfortunately, it is an expensive passtime and one that we have to have if we want to be on the road with our cars so that we are legal.



    Quote Originally Posted by Bill-K;267572[/SIZE
    ]I expect the T&C's will probably support your assertion, Tuttsi. What I think Ian and I are saying is that these are UNFAIR T&C's - and, as such, they should be challenged by the likes of us guys, and NOT just accepted as 'custom and practice.' We did it with penalty charges, didn't we ? The banks had to re-draw their agreements. We're doing it with PPI, now. Who's next ?

    Car insurers ?

    Why not ?

  22. #22
    the hawk's Avatar

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    Default Re: car insurance

    Woah sounds like ive stirred up a hornets nest !I will say a few more things and then i will shut up lol1. I agree with Great Dane these are unfair terms and conditions, and yes IT SHOULD BE CHALLENGED! and thanks for recognising that fact2. Just because its the NORMALLY ACCEPTED PRACTICE does not make it right3.Are you really saying DONT HAVE AN ACCIDENT UNTIL youve completed the payments? is that the reson one insurer gives you insurance for 12 months but you only pay for 10 SO YOU CAN HAVE A WRITE OFF IN THE LAST 2?? yes I am angry I cant believe that this has hid under the radar for so longThats my rant over I have posted a story in my Local paper maybe i can get this some noteriety, my local MP and ive hit the nationals even if i get no where at least motorists at large will get to here about this "Pasty Tax"any one? lol

  23. #23
    messimoo's Avatar

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    Default Re: car insurance

    it is getting more and more expencive to drive Mr M's 2 ltr deisel mondy is only 8 years old has over 10 years driving with no claims at all (only windscreen which we went to repair a crack and autoglass broke it LOL) has no convictions over 30 yet when we moved from a town to a more rural location and baught the mondy our premium went up from 600 to over 1400 paying montly that is bad . When we questioned this was told it was the younguns who refuse to insure the cars and false claims that bump up the premiums , A bitter pill to swallow but little we can do now as we have to wait until August for renewal and look elsewhere . We are literally being priced off the roads,

  24. #24
    alham's Avatar

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    Default Re: car insurance

    Insurance, like a few other things (public transport, air travel) have their own laws and rules that may have been acceptable when created originally, but in the 21st century are way out of kilter with our understanding of what is fair and acceptable. Unfortunately, however much we runt and rave the car insurance risks, UNLESS stated otherwise, are covered on a yearly basis, same as the road tax and MOT. Once insurable risk occurs the policy will still carry on until its expiry date!

    With regards to fairness we must start a process to change things like Warsaw Convention covering air flights or by-laws covering public transport, etc...

  25. #25
    enaid's Avatar

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    Default Re: car insurance

    Well if you have an accident and you are paying monthly the policy is not finished as the car is still insured and either parties insurance company pays out, penalties are taken out then via no claims bonuses etc.
    This is about when a car is a write off and the car is no longer insurable as it no longer exists.

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