Hi My sons moped was written off after a van reversed over it - non fault

He has been receiving letters from his insurer asking for the outstanding premium to be paid, I havent been in this situation before and unsure of -

If the remaining premium needs to be paid

If the at fault party should cover the unpaid premium

is there anything I should be doing instead

Thanks in advance for advice

Not 100% sure as its been a while since I worked in the business, but I believe in the event of a total loss, they ask you to settle all outstanding premiums as the insurance on that vehicle has ended for good.

Are they asking for the whole premium or pro-rata to date of accident?

If your son had fully comp insurance, his insurance company would handle everything inc chasing the third party, however if he had TPFT cover, you will probably end up handling this yourself direct with the other party's insurer.

Who's paid out to your son? The other parties insurer or his.

If it's his own insurer, the figure paid should have been a "settlement", meaning that there shouldn't be anything left outstanding.

If it's the other parties insurance that have paid your son directly, then he does need to settle his account (ie pay any outstanding premiums) with his own insurer.

If no one has paid anything yet, your sons insurer should be dealing with the claim on his behalf and making sure that the third parties 'settlement' covers all of your sons expenses including the settlement of his policy. If this is the case, your son should get on to his insurance company and make them work for their money.

If he's paying monthly to spread the cost, then the premium will need paying in full before they'll settle.

The 3rd party won't pay his years insurance, no.

While I fear that Bazooka Boo is probably correct in that the 3rd party won't want to pay up for your sons premium. It's not really right (or fair) that your son should be worse off, financially, as a result of someone else's actions.

If he has "legal cover" as part of his policy, it might be worth getting them to earn their crust by making sure that he isn't.

If he's paying monthly to spread the cost, then the premium will need paying in full before they'll settle.

 

The 3rd party won't pay his years insurance, no.

Correct.

I wonder whether there are other avenues to look into. Loss of use, any expenses that will be incurred as a result of the third party causing this loss.

With a premium, you take out an annual policy, so a third party is never going to pay towards that. However, if a third party causes someone to be worse off, then thought needs to be on what loss can be evidenced directly related to the accident.

If you consider what would happen if he paid for the insurance as a lump sum then he pays up and they issue a policy that covers him for the year. n the event of a total loss them the insurers cough up for the loss and the insurance is then cancelled.

Now for a cheap car and a youngster the insurance premium may be more than the car's value but tough, they pay for the car. A your son gets the benefit of the contract staring on day one and he then pays the money owed off in monthly chunks he will owe the balance of the premium and his insurer are basically making sure he pays them that beofre they start being nice because if the get a settlement from the othe rparty and pay out for the bike your son my suddenly gets amnesia when it comes to paying up the balance of the loan (cos that is wat it is). So, just prudence on their part but it drags the process out.

Yes, it is a pain to find the lump sum all of a sudden so he can only negotiate with them to get them to settle with the van's insurer and pay him the balance if he cant find the money up front.