Car written off - insurance refund/transfer?

[neuroboy]

Hi,

My old beloved VW was stolen, found by police and written off by my insurers as beyond economical repair.

They told me that because the car has been written off, I don't get a refund on the remaining 9 months insurance. They did say that if I was to get a new car and contact them quoting my old policy number, they would offer a discount on a new policy for that car.

However, things being as they are (and considering my luck with cars!) I doubt I'll be getting a new set of wheels for a while.

Can anybody tell me what is the standard procedure in this event? As a work friend of mine insists that insurers have to refund you for the remainder of your policy if it has been cancelled, even if the car was written off, and he should know because his Mum works for an insurance company

Should I pursue this with my insurers or is this friend spouting hearsay and conjecture?

Also, say I was to get another car soon, there is theoretically 5 months left on my old policy - what sort of a discount can I expect on a new one?

Many thanks.

[Chesterexpress]

Most insurers do exactly as yours and this is usually covered in the T&C's.

[ab123uk]

Hi Neuroboy,

As you've entered into an annual policy, a refund isn't usually offered, however, I would say that if you got a new vehicle, the policy would just be changed over?

[neuroboy]

Thanks folks.

I'm going to check with Elephant exactly what I'm entitled to do. For example, if I buy a replacement car that is exactly the same as the old one, surely my policy would continue as before?

The trouble is, it took them 3 months or more to sort out the settlement, so there's probably only 5 or 6 months left on it. And probably less, 'cos I've just remembered it was a 10months NCB accelorator policy (waste of money that turned out to be!)

I think I'll just have to give up the ghost and go carless and just pocket the cash from the settlement, untill I'm back on my feet again...

[Gary29]

I will never touch, those kind of policies, as some companies won't take the no claims that you earn as it's only 10months and not 12. Ok it maybe a bit less, money wise, but then you lose out on other things. Thats why I'm going back to my old brooker in march when mine comes up for renewal.

Why not get yourself a bike either motor or push, it's still a way of getting around.

[*Twinkle*]

Hi Neuroboy,

I had the same thing happen when I was insured with Direct Line. My car was stolen and written off, I had to continue paying my monthly payment and when I got a new car my payments were adjusted accordingly.

It does actually make sense if you think about it, If you had paid your insurance in full at the beginning of the year, you wouldn't be able to claim that back so that is why you have to continue paying. If they are saying you will need to take out a seperate policy with a discount then that is bad.

Hope you sort it out!

[Darkangelsdelite]

If a fault claim is made during the insurance period, then no refund is due if you cancel. This is pretty much standard across the industry (your mates mum should know this) As stated above, this is because they have fulfilled their part of the contract by paying out for your car, also by retaining the premium they also recoup some of their losses.
The idea is that you use the settlement to purchase a new vehicle and most insurers will allow you to call up and change the vehicle on the policy for the remainder of the contract. If you go for a newer/higher rated car then you may have to pay an additional premium, however, if you get a smaller or lower rated car then you still wont get any refund.

Hope this Helps


DA

[neuroboy]

Thanks folks.

Just to clarify, I paid for the insurance as a lump sum in advance (I'm glad I did or else I'd be really f***ed off if I was still paying it at their increased monthly rate). I don't think it has actually been cancelled - thats just what I presumed - I guess they would continue the policy if I got another car, with adjustments.

Unfortunately I'm not in a position financially to get another car - the one I had was cheap and old but in very good nick with low mileage and very reliable... I'd be very lucky to find another like it for the meagre amount my insurers gave me (which admittedly was only a bit less than I paid for my VW on eBay, though probably only a 1/3 of what it was worth)

I'm just going to keep the cash to reduce my myriad of debts, and forget about cars for a few years, until I can afford the costs of running and the damn insurance premiums again!