About 1 month ago I crashed my car, claimed on the insurance and all was right with the world. Then a couple of weeks ago personal circumstances changed and my wife and I were no longer able to afford the car hire purchase payments. The car went back and as we have no car we tried to cancel the insurance cover. Tesco say that we still have to make the monthly payments until the renewal date (next January) because we've had a claim in this insurance period. I've checked the Ts & Cs and sure enough Condition 5(b) says:
So, it's clearly stated that they'd expect the payments to be kept up (as if we'd paid in one lump sum we'd not be entitled to a refund), but is this a fair Condition on a policy? It certainly seems unfair - we're having to pay for insurance on a car we no longer own!This Policy may be Cancelled or suspended by You at any time by returning the current Certificate of motor insurance to Us with seven days notice in writing.
Any premium adjustment will be calculated from the date we receive the Certificate from You.
Provided no claim or loss has arisen in the current Period of Cover We will:
(i) In the event of cancellation, return the premium after applying Our Cancellation Rates shown in the Schedule for the period the Policy has been in force.
Thanks for any advice you can provide,