Mce Motorcycle Insurance

[Manicl]

Received my settlement offer through today as my motorcycle was stolen.

The insurance company are deducting 10 monthly instalments as my insurance is pay monthly, that combined with my excess means im down about £1000.

Is this correct and normally what happens?

Thanksin advance

[Arrods]

'Fraid so Manicl.

[Buenchico]

Yes.

Your insurance policy isn't 'month by month'; it's an annual policy and your insurer bases their calculations upon you paying for a full year. (The fact that they give you credit and let you pay the full amount in monthly instalments is irrelevant). So, when their accountants look at their books they need to see that (in order to have received a payout) you've paid the whole year's premium.

[Deskdiary]

Yes, it is correct.

You contracted with your insurance company to pay you in the event of a loss of your bike. In consideration of this you agreed to pay an annual premium.

They have fulfilled their side of the contract by agreeing to pay you for the loss of your bike, and in order to ensure you fulfil your side of the contract they are deducting the remaining premium from your settlement.

[bhg481]

And, of course, the policy is now terminated, so you'll need to take out a new policy if you replace your bike.