As some of you know, I had a random halfwit crunch into my car a little while ago in a carpark and bugger off without leaving any details.

My insurance policy had just been renewed (5 years protected NCB) so I went and got the repairs done via them. All fine and dandy.

Now I've sold the car, I sent them a letter cancelling the insurance. I've just got a letter acknowleging that but asking for the remainder of the year's premium (I pay monthly) which is some 700 quid+ as there's a fault claim on the record (aforementioned "not my bloody fault at all" claim).

I've never had the combination of claim & selling car before (sold a car but insurance was clear, and had a claim but insurance was renewed), so I'm a little taken aback by this.

(apparently the home contents insurance is the same - so much so that a lens I dropped recently isn't worth replacing on the insurance as the outstanding premium when I cancle in 2 weeks when I leave, would be 50 quid more than the excess I'd have to pay )

 

That's (generally) the way it works, but check your insurance policy docs.

Used to stop moral hazard and because the orig. quote was based on pooled 12 months on risk.

BTW as you are away for a while check how long you can go without insurance to have NCB intact (IIRC it's 2 years).

 

yeah sounds about right, if you have used the policy by claiming then you are liable for the cost of the cover which would be the whole amount.

 

Perfectly normal under the circumstances, sorry.

NCB lasts 3 years before it becomes invalid.

 

Graham

`Fraid it is the case. The contract is an annual one and they'll say that the fact you pay monthly or are cancelling early is irrelevant.

It probably says somewhere in the policy wording that the full annual premium is due if they pay a claim (without recovery) in the policy term.

The really annoying thing is that you're paying money for nothing in the sense that if you were staying, you would enjoy X number of months cover for the money you're paying....

Hmmmm in fact, Ive just had an idea so will PM you......

Ray

 

No you're not.

 

Yes you are....

In the context it was intended....

Say for example Graham has 10 months left to run on his policy - if he was staying and hadn't sold the car, the

 

It's classed as a "fault" claim because they didn't recover from the third party.

 

I certainly would.

My ownership ended 2 weeks ago, with 8 months left to run on my policy.

I have owned the car for 4 months. Not 12. 4. I will not be driving the car, or even have it in my possession for another 8 months.

I would be indebted forever if someone could explain how I am equally as liable to cause a claim as someone who owned the same vehicle for 3 times as long

 

Your contract was for a years insurance.

The fact that you chose to pay in instalments has no relevance. This is simply an option that you have chosen.

Put it another way... if you had paid up front, would you have expected them to refund you?