car insurance

[nannieali]

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

[wales01man]

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

[bluebottle]

Re: car insurance

Check the policy document to see if they can do this. If not, start getting tough with them.

[the hawk]

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!

[TUTTSI]

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.

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

[the hawk]

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?

[TUTTSI]

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.

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?

[the hawk]

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

[TUTTSI]

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.

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

[BBNB]

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!

[alham]

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.

[the hawk]

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!

[messimoo]

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.

[TUTTSI]

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!

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.

[emdee1980]

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