Hi

My daughter has just written off my car. I am told by the Insurance Company that I cannot now cancel the insurance and that I am required to continue to pay the premiums until the end of the term of the insurance (Oct 09). Is this right? I would be grateful for any advice please.:?

Ask them to let you know where this is stipulated in their T&Cs.

This is a common position by insurers and I have never been convinced that it is fair or enforceable.

Thank you for your post - I have dug out a copy of the T&Cs to the 'Credit Agreement' (I pay monthly). Clause 10 covers if your insurance is cancelled due to Condition 8 (i.e.Termination by Company for various reasons) & states that a balance may be due. It goes on to state in the same Clause that if a claim arises in current year the balance of the year's premiums will be payable. This reads and looks linked to Condition 8 rather than a seperate stand alone Clause. Misleading?

This is a common and misunderstood situation.

Your policy is a contract that states, during the term of cover (usually 12 months), they will pay for damage to your vehicle if involved in an accident etc. This is their promise. Your promise is that you will pay them £x - the premium.

Now that they have fulfilled their part of the bargain, they expect you to fulfill yours and to pay the cost of the policy. There is nothing untoward or wrong in this. You have not paid for a month by month policy but for a whole year.

Hi just to clarify this.So do you have to pay up until Oct 09 then or can you tell ask them for a refund.

You have to pay the full premium for the year / 10 months or however long your insurance is for.

Just to add something little.

Most insurers take an economic stance to chasing outstanding accounts of this manner. Depending on the amount outstanding/ and the type of insurer i.e. large insurer has inhouse solicitors, will depend on their actions if you don't pay. All insurers have an aged debt list which includes these exact type of debts owed by total loss drivers who neglect to pay the oustanding premuim.

Also, insurers terms and conditions are never perfect. I should know, i interpret wordings most days. If you advise me of the insurer(can check their t&c's) and how much outstanding, can give you an idea whether you can get out of paying.

Please note the above is only my opinion and is not set in stone. Hope helps......

I would be very intrigued to hear how one can "get out of paying" an agreed contract...