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Car Insurance Problems
5 Answers
My grandson's car pulled to the left when braking and he skidded into a ditch, his car was beyond repair.
He put in an insurance claim and they said they were waiting to see if there were any Third Party claims over a month ago.
Now they have applied for his monthly payment. Surely if you have put a claim in the monthly payments are void?
I thought that number one the claim should have been sorted by now as well.
Is the insurance company right to carry on taking premiums?
Thank you for any help.
He put in an insurance claim and they said they were waiting to see if there were any Third Party claims over a month ago.
Now they have applied for his monthly payment. Surely if you have put a claim in the monthly payments are void?
I thought that number one the claim should have been sorted by now as well.
Is the insurance company right to carry on taking premiums?
Thank you for any help.
Answers
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An insurance policy is always (other than when specific 'short term' insurance cover is taken out) an annual one. That applies even when credit is provided, enabling monthly payments to be made.
For example, a driver might be quoted £1200 a year for his insurance but be invited to pay it a rate of £100 per month. [I'm omitting any supplements added for monthly payments here in order to simplify my example]. So the deal is "You pay us £1200 and we'll provide you with insurance cover". If the car is then subsequently written off after only a few monthly payments have been made, the original deal still stands. i.e. the insurer person is obliged to pay the full £1200. (So if the accident occurs after two monthly payments have been made, the insurer will say "You still owe us £1000. Carry on making the monthly payments and then, when we come to pay out, we'll deduct the remainder of what's owing from what we pay you"). It's a perfectly normal insurance contract.
For example, a driver might be quoted £1200 a year for his insurance but be invited to pay it a rate of £100 per month. [I'm omitting any supplements added for monthly payments here in order to simplify my example]. So the deal is "You pay us £1200 and we'll provide you with insurance cover". If the car is then subsequently written off after only a few monthly payments have been made, the original deal still stands. i.e. the insurer person is obliged to pay the full £1200. (So if the accident occurs after two monthly payments have been made, the insurer will say "You still owe us £1000. Carry on making the monthly payments and then, when we come to pay out, we'll deduct the remainder of what's owing from what we pay you"). It's a perfectly normal insurance contract.
Furthermore, when his claim is settled and they give him the money for the written-off car, they will deduct the remaining premiums from the settlement. In an extreme case he may have to pay them money. The policy will cease if the car is written off but the full year's premium will have to be paid.
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