Directline- car insurance problem

[cool4cats]

Hi All

 

Have used this site to claim back bank charges successfully so am hoping someone can help me with this or let me know what to do.

 

We had a non-fault accident last weekend. Some idiot drove into our car when it was parked on the street. The 3rd party claimed responsibility so no probs you would think. Car is a total loss so am being compensated (fairly) reasonably by his insurance company.

 

However I am told that as there has been a claim on the policy that I am still liable for the outstanding premium and must carry on my installments on my premium until the end of the policy year. (This is December). If I want to insure a new car I have to take out a new policy which will run in tandem with the old (now defunct) policy.

 

I would understand this if we were at fault but given that the 3rd party has admitted liability would have thought that we should not be left out of pocket in this way. I would argue that the claim has been made against the 3rd party's insurance policy not mine.

 

Can I do anything about it or do I just have to write it off as a bad job?

 

Any advice welcome.

[xrchris]

Am i correct in assuming you reported the incident to your own insurer and have subsequently gone direct to the 3rd party insurer instead?

[Yorkyclaims]

Yeah,

 

As the Third Party has admitted liability, it might be best you withdrawing the claim you have with Direct Line and starting a claim yourself against the Third Party.

[ScarletPimpernel]

You can claim the cost of the remainder of the year's premium from the 3rd party as an uninsured loss.

[cool4cats]

Thanks for responses.....

 

No, I have dealt with Directline on this. They didn't advise that there might be an issue re the premiums. Have I not gone about this the right way?- doesn't seem fair that I should be penalised for not knowing how to claim!

 

They say that I can't claim uninsured losses for it as it doesn't count as an uninsured loss(?)

[xrchris]

OK, they are correct in that you are responsible for paying the remainder of the premium when a claim is made. There are a few buts to this though.

 

Are you going to be replacing the vehicle ASAP when you receive the settlement? If so you ARE entitled to add the new vehicle to the existing policy and DO NOT need to start a second policy to run concurrently with the first. I never heard so much piffle in my life.

 

If you are definitely not going to replace the vehicle then cancel the policy, when the claim is settled in your favour you ARE entitled to reclaim for the unused part of the policy.

[cool4cats]

Hi Chris,

 

Many Thanks for your advice....

 

Yes we are planning to replace the car within the next week and haven't received settlement yet, although have negotiated a figure today.

 

So this makes a little more sense, effectively I will have 2 cars insured on the same policy as I would if say my husband and I had 2 cars? This would obviously be less than taking out a new separate policy.

 

They were very clear that I couldn't claim a refund if I cancelled the policy.

 

C4C

[xrchris]

Hi Chris,

 

Many Thanks for your advice....

 

Yes we are planning to replace the car within the next week and haven't received settlement yet, although have negotiated a figure today.

 

So this makes a little more sense, effectively I will have 2 cars insured on the same policy as I would if say my husband and I had 2 cars? This would obviously be less than taking out a new separate policy.

But you wont have 2 cars unless you have negotiated to keep the salvage. The written off vehicle becomes the property of the insurer once you have accepted their offer and you are no longer responsible for it.

 

They were very clear that I couldn't claim a refund if I cancelled the policy.

 

C4C

They are only temporarily correct as once the insurer has recovered their outlay and the incident is settled 100% in your favour you are entitled to a refund of the unexpired portion of the premium. Less any admin charge which i guarantee a direct writer will add on.

[cool4cats]

Are you going to be replacing the vehicle ASAP when you receive the settlement? If so you ARE entitled to add the new vehicle to the existing policy and DO NOT need to start a second policy to run concurrently with the first. I never heard so much piffle in my life.

 

 

OK, now I am confused..........

 

Can I insure my new car on the same policy? What financial implications does this have for me as opposed to cancelling the policy and starting a new one and claiming back the unexpired part of the premium?

 

Really thanks for your help, I am very very grateful. May not be able to reply immediately as am leaving for home shortly but will check over the weekend.

 

C4C

[xrchris]

Am i correct in assuming that you are NOT keeping the written off vehicle as part of your claim settlement?

 

If you are not then all you will be doing is substituting the written off vehicle for your new vehicle for the remainder of the existing policy and your premium adjusted up/down accordingly.

[Trojan1401]

Agreed,

 

What Direct Line are saying is absolute rubbish.

 

This is a straght forward change of vehicle following an accident and the only charges that should be made would be due to the group rating of the vehicle & no doubt an admin fee.

 

Ironic isn't it that D/L are owned by Bank of Scotland !!

[cool4cats]

Am i correct in assuming that you are NOT keeping the written off vehicle as part of your claim settlement?

 

If you are not then all you will be doing is substituting the written off vehicle for your new vehicle for the remainder of the existing policy and your premium adjusted up/down accordingly.

 

Thanks for your responses, no we are not keeping this vehicle. We will be buying a new one this week and insuring it with Directline I assume. We have negotiated the settlement and so are now urgently trying to find a new one before the courtesy car runs out.

 

Perhaps all this will be clarified when I insure the new vehicle?

[Yorkyclaims]

When you get the new car you need to contact DL and ask them to change the vehicle on the policy. AS the claim has been settled as a non fault claim, then they will change the vehicle no problem. There might be a payment increase, or if you are downsizing your car you might even get a pro rata refund.

[cool4cats]

Thanks for all your advice, hope that all works out as you have told me. Will let you know what happens next week when we have hopefully got the new car!!!

[xrchris]

AS the claim has been settled as a non fault claim, then they will change the vehicle no problem.

 

Whether the claim was fault or non-fault has no bearing on it at all. There are very few policies about these days that are cancelled upon claiming.

[cool4cats]

Thanks to all those who responded.

 

I have now had a settlement letter from Directline which says

 

"As your vehicle has been damaged beyond economical repair your insurance policy has been suspended. All cover under your insurance policy has has ceased until such time as the details of a replacement vehicle has been notified."

 

So, I am now assuming that what I was told on the phone was wrong and that what I was advised here was right. Will let you know if Ihave any further problems.

 

Thanks again!

[Guest TractorGirl]

COOL4CATS it sounds like

 

1.)DL have suspended your policy NOT cancelled it....

2.) All cover has ceased i.e COMP, TPFT or TPO, not the actual policy itself, they can not keep a policy active on a write off. Also if you have DOC (DRIVING OTHER CARS) on your cert and wording this too is ceased.

3.) When you purchase a new car advise DL of a vehicle change for the duration of the insurance period, there may be a premium payable or returnable or none due - dpends on your vehicle.

4.) Once the claim has been settled - unfortunately you remain at fault - standard procedure. Companies do this to make sure they don't end up paying out, if the claim is settled non fault and your policy becomes active on the new car for the duration at least - you MAY be entitled to 50-75% refund for the period of time your policy was suspended for - (normal procedures are that policies have to be suspended for 30+ days for the policy holder to benefit

 

trust this helps

[Trojan1401]

C4C,

 

Has this concluded with a happy ending ?

[cool4cats]

Hi guys

 

All's well that ends well. My original policy was suspended until I informed them of my new car details although obviously I kept on paying the DDs.

 

Marginally higher premium due on new car but apart from that no further issues and cover has been reinstated.

 

I obviously got someone who couldn't explain the procedure properly when I called Directline initially. Thank goodness for you guys who were all extremely helpful!!! (And right of course!)

 

Thanks again!

 

C4C

[Guest TractorGirl]

C4C

 

Remember if your policy was suspended for 30 days or more you may be entitled to a discount of up to 75% for the period of your suspension

 

EG if your monthly DD was £30 for a suspended month, you may be able to get a % back - depending on your cover in the 1st place - higher disc if it was comp lower if it was TPO

 

Has the claim been closed Non Fault yet ?

 

TG - faithful underwriter

[cool4cats]

Hi Tractor girl

 

Not sure if it has been closed no fault-do we get a specific letter saying this. We had a letter saying the third party had admited liability We have received a cheque for our excess which has come from the Third Party.

 

We are now going after uninsured losses so case is not closed just yet.

 

C4C