Insurance

[sweep1]

My son had his car made uneconomical to repair by his insurance company. He decided to buy it back and have it repaired at a cheaper garage. The insurance company want to take �500 for the instalments left on the insurance. Is this legal and if it is, how can my son get the full book value of the car as this is a lot to loose.

[Ethel]

I assume your son is paying for his car insurance in monthly instalments.

The simple fact is that he paid for the insurance in a lump sum with finance provided by the insurance company. He is probably paying interest too.

Your son now has a loan with �500 outstanding and the company is entitled to its money.

[Grunty]

As Ethel says, the insurance that your son bought was for a year. If he has not paid for it in full, then he owes the balance.

[stevie21]

If he's having it repaired and it's soon to be roadworthy, does he need to cancel the policy? It might be cheaper to let it run its course

[ianess]

More a thought than an answer in response to stevie21, but from my dim and distant past it sticks in my mind that once a car is written off by the insurance company then that ends the entire policy there and then.
Not 100% sure on this but please correct me someone if I'm wrong.

[JudgeJ]

Absolutely correct. If you buy an insurance policy one day and the car is written off the next, the insureres pay out for the total loss but you forfeit the cost of the premium for the remaining 364 days of the policy.

As Ethel says, although some insurers provide a monthly payment plan, the policy is in fact for a year. The company is quite right in this case to deduct the outstanding premium due.

[tellboy]

Stay with the Insurance Company. Until it is roadwirthy ring them up and convert it to laid up, fire & theft cover.
Very cheap and the insurance is continuous earning NCD.