Just a quick question.

I took a policy out last January (2005) it was a new policy and I transferred the existing policy I had with them to another car.

I was involved in an accident on the 1st of March 2005. The insurance company declared the car a write off and I finally got paid December 2005 (from my own insurance company).

I was paying monthly for my insurance. I've just checked by bank statement and they're still taking the monthly payment. They've even renewed the policy last month !

Obviously I am going to cancel the renewal, but my question is when should the payments from the last policy stop?

I've been told they should have stopped in March when the accident happened, although I may be due a few months payment for cancellation notice ? Is this correct ?

cheers

 

Unlikely. You are actually liable for the whole premium for day one of the insurance policy... paying monthly just subdivides this total amount (with a bit more on top sometimes).

Unless you actually cancelled the policy your monthly premiums will still be taken regardless, which the company are perfectly liable to do.

In some instances there is actually a clause in the policy that says you are liable for the whole premium if the insurance company makes a write-off payment.

Check the small print I reckon.

Rich

 

I've just spoken to Norwich Union Direct regarding this.

Basically they're saying I should have cancelled the policy back in March when I had the accident. This was down to me. I explained no one told me about this.

They've said I still hold my third party right to drive other cars under the policy and this is why they've left it running.

I've got a letter here dated August 2005 asking for the return of the Certificate on Insurance along with other documentation of the car.

I explained that surely if I don't have a certificate I am not insured? They've said otherwise.

Is this right ? Surely I am entitled to a refund from them ? I've paid over £500 in payments since March which they're saying I wouldn't have had to pay if I cancelled the policy back then ?

 

Hi Val,

NorthDown is correct..

Being a 'Direct Insurer' we do not have access to their policy terms & conditions. But you should check your policy booklet for norwich union direct, paying particular attention to the Cancellation part of the policy.

Clearly, Norwich Union would be aware that your vehicle was a total loss and that there was no vehicle covered since. BUT, you will probably find that the policy wording will indicate that there is no refund if there is a 'non-recoverable' incident presented/claimed for under your policy.

By indemnifying all concerned, the policy will be deemed to have served it's intended purpose and your Insurer will have been deemed to have done their job.

Some Insurers allow you to add or switch to another car to use the remainder of the policy, others are strict in as much as the policy is automatically cancelled, which would be without refund in event of a non-recoverable claim.

The annual premium for the claim year will have been due regardless as to whether you are paying by Premium finance (Loan) or paid in full.

You will probably find somewhere in the small print last year that NU Direct operate an automatic renewal procedure for their customers and that will be why they renewed the policy this year.

You're flogging a dead horse in respect of last year, but there is some mileage in writing to NU Direct & pointing out to them that the vehicle was written off (can be verified by their claims dept) & thus renewal is not required.

Probably not what you wanted to hear, but this is how most Insurers operate.

Kind regards

Tony