Churchill Insurance - Car Right off

[c.kent]

Hello,

My car was recently stolen and in the process the car was so badly damaged the insurance company have declared it a right off. They have agreed a settlement figure. However, to my dismay, they have now told me that I have to carry on paying the monthly insurance premium (even though I am now without my car) until October when the insurance would have been due for renewal!!!! Surely they cant expect me to carry on paying insurance premium for a car I no longer have? Any advice would be appreciated.

C. Kent

[Chesterexpress]

Standard practice in a total loss situation. The full premium is due on an annual policy, many would take the remaining amount out of the settlement figure.

[gyzmo]

I used to get this a lot when I worked in insurance. You have a contract which will pay you should certain events happen (the events covered on the policy). That is the insurer's part of the bargain. Your part of the bargain is to pay the insurer the cost of the policy - that is, the premium. he insurer has fulfilled its part of the bargain and now expects you to do the same. The fact that you pay monthly makes no difference - that is just a method of payment.

Its a while since I last worked in insurance, so practice may have changed, but we used to put the policy on suspension. If you bought another car, you could put that on the policy and the premiums are adjusted accordingly - so if you do get another car, you should be able to simply change the policy to cover it. Like I said - it was a while and things may have changed.

[c.kent]

Thanks for your replies. But as my years insurance is calculated by 12 monthly payments, why should I have to pay a full year when I have not got the car anymore???

C.Kent

[gyzmo]

Becasue the policy covered you for a full year. As I said, paying monthly is just a method of payment. If you had paid all in one go you would not be entitled to a refund. The insurer's side is, if within a years period something happens to your car, they will pay money to fix it (or pay its value if unfixable). The cost of this is the premium they quoted you. You are not paying for a months cover at a time - you are paying for a whole year in monthly installments.

Put it this way. If I bought a stereo off you and we agreed that I would pay you in monthly instalments, would you be happy if I refused to pay you because I broke it 1 month later? (I would hope not!) The same prinicple applies here.

[c.kent]

Hi, yes, point taken. I suppose I am so aggrieved that I have had my car stolen, written off, lost two years of my no claims bonus and now have to carry on clearing the insurance debt, when the hoodie who wrecked my car is now out and about again and not paid one penny towards all the upset, frustration and financial loss I have incurred!

Many thanks for all your replies.

C. Kent

[gyzmo]

I'm so sorry - I hated (and still do) having to tell people what I have said to you - it does seem unfair on the face of things, but insurers are so concerned on selling their policies and their benefits that few if any highlight the "cons". I'm qualified in insurance matters, so to me it is common sense, but my experience tells me few are aware of such situations.

It is horrible - hopefully the little git will get run over or something equally nasty. Like I said, if you do get another car - you have a policy ready and waiting for it to be put on.

Hope things get better.