Insurance question
Discussion
I was wondering something about insurance.
Let's say you get an insurance policy for 1 year costing you one payment of £5000.
You then smash your car and write it off within the first week of having that policy.
Do you have to spend another £5000 insuring the next car? Does the policy transfer onto your new car? Do you get most of your money back? Or are you just well and truly f
ked?
Hopefully that situation will never arise, but I'm curious.
Let's say you get an insurance policy for 1 year costing you one payment of £5000.
You then smash your car and write it off within the first week of having that policy.
Do you have to spend another £5000 insuring the next car? Does the policy transfer onto your new car? Do you get most of your money back? Or are you just well and truly f
ked?Hopefully that situation will never arise, but I'm curious.
Just change the orignal policy from the old car to the new car. Same as you do if you buy a new car part way throught the year. You will then have to pay the difference between if its more or a refund if less. When I changed my Mondeo ST TDCi to my Focus ST, its was £80 more for the rest of the year (7 months or so).
Completely depends on the insurer. For example if you are with a direct insurer (Internet etc) and pay premium by Direct Debit they may deduct the balance left to pay from settlement, then cancel your policy. If your lucky they may do this and then allow you to effectively change vehicle on policy.
Most broker based insurers will allow a change of vehicle post accident and not deduct the monies owing. As it is likely that you will pay the brokers Direct Debit company and not the insurers. There only charge to change vehicle (unlikely to get return premium).
If paid in full best change vehilce pronto as due to MID you can't insure a vehilce that's not yours (the insurer effectively owns the written off vehicle) insurers usally give a couple of weeks. Best but a wreck to keep policy going especially if £5k premium.
Or if married insure spouses car on your policy then can cancel her policy as no claim on that risk therefore refund ok.
Final point to mention if the insurer pays out and pay by Direct Debit and you stop paying and policy cancelled effectively not completing the insurance contract. The insurer will write asking for the money and you think they will go away they won't and they instruct debit recovery = bad credit history = not able to pay next year by Direct Debit = downward spiral!
Read small print and ask questions!
End
Most broker based insurers will allow a change of vehicle post accident and not deduct the monies owing. As it is likely that you will pay the brokers Direct Debit company and not the insurers. There only charge to change vehicle (unlikely to get return premium).
If paid in full best change vehilce pronto as due to MID you can't insure a vehilce that's not yours (the insurer effectively owns the written off vehicle) insurers usally give a couple of weeks. Best but a wreck to keep policy going especially if £5k premium.
Or if married insure spouses car on your policy then can cancel her policy as no claim on that risk therefore refund ok.
Final point to mention if the insurer pays out and pay by Direct Debit and you stop paying and policy cancelled effectively not completing the insurance contract. The insurer will write asking for the money and you think they will go away they won't and they instruct debit recovery = bad credit history = not able to pay next year by Direct Debit = downward spiral!
Read small print and ask questions!
End
ZOLLAR said:
How are they s?, they are doing what you pay them to do its not their fault if the vehicle value is less than the excess.
If the premiums weren't such an insane amount in the first place, I wouldn't mind the huge excess. It's the whole deal with paying the insurer several thousand pounds, then in 99 out of 100 cases you still end up paying for the damage yourself that really winds me up. s?, they are doing what you pay them to do its not their fault if the vehicle value is less than the excess.Raize said:
If the premiums weren't such an insane amount in the first place, I wouldn't mind the huge excess. It's the whole deal with paying the insurer several thousand pounds, then in 99 out of 100 cases you still end up paying for the damage yourself that really winds me up.
What about the people you may have injured in a fault accident? Have you considered that £5000 is swallowed up in about 5 seconds flat in those cases?In answer to your original question. You are buying a policy for 12 months cover, where the cover is available for all 365 days. If you claim on day 1 or day 365, then your policy has paid out and delivered what it was supposed to. However, you bought cover for 365 days, so your duty is to pay for those 365 days. The policy ends, and you pay the full contract value.
Many insurers now allow you to maintain the contract though and simply pay the balance on a new car for the remainder of the year. However, this is a beneift of some policies and probably not available on the ones at the lower end of the cost range (irrespective of how high that cost actually is).
Raize said:
If the premiums weren't such an insane amount in the first place, I wouldn't mind the huge excess. It's the whole deal with paying the insurer several thousand pounds, then in 99 out of 100 cases you still end up paying for the damage yourself that really winds me up.
premiums are higher (I won't say insane as IMO the amount we pay for the cover we get is cheap) due to people claiming more for personal injury etc.Insurers don't raise prices just for the fun of it.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff