Need some advice guys.... - Saxperience

Andy_S · 10th March 2008, 19:32

Right,

Last year my sis passed her driving test so as you do, she went out, bought a car, insured it, blar blar blar..................3 months down the line, she had an accident and the insurers have said the cars a write off which is fair enough.

Now when she insured her car, she paid for it in full (12months) used 3 months and is now car less, she cant afford another car for a good while, so she has asked her insurers for a refund for the remainder of time left (9months) and they have turned around and basically said.....NO!

Can they do this........? or is she entitled to a refund?

Raz · 10th March 2008, 19:34

i think it all depends with her contract that she signs etc etc....

Dez · 10th March 2008, 19:35

has the claim been sorted yet?? i think this may have an effect on it..

As far as im aware you can cancel your insurance at anytime and they will refund you a premium. Best to have a stroll through your insurance terms and conditions as it will def say in there!

Andy_S · 10th March 2008, 19:45

I think it has, but i dont think she has received her settlement cheque yet, I'll have to dig out the documents for her and have a read.

Dez · 10th March 2008, 19:46

That will more then likely be why tbh bud as there is still a claim in progress

Andy_S · 10th March 2008, 19:52

I have just read the terms and conditions and it basically says that, if a claim is made, the policy will be cancelled and no refund for the remainder of the time will be made, so thats about 500 quid down the fucking drain.........wankers arent they, insurance companies, oh-well, chin up aye.

azza8lcfc · 10th March 2008, 19:58

fukin wrong m8 same thing happened with one of me m8 had a crash they sed a write off, he had onli used about 2 months of his 12 month contract!! lost bout a grand!! tossers

Raz · 10th March 2008, 20:03

Quote:

Originally Posted by Andy_S

I have just read the terms and conditions and it basically says that, if a claim is made, the policy will be cancelled and no refund for the remainder of the time will be made, so thats about 500 quid down the fucking drain.........wankers arent they, insurance companies, oh-well, chin up aye.

unlucky mate...as much as it is wrong....its was in the terms and conditions...your sister signed the paperwork....

only thing is....read the paper work next time....£500 is a bugger like...i feel for ya

Hannah · 10th March 2008, 20:05

Did she pay it in one lump sum then? Cos if she paid monthly she surely could just cancel her direct debit.

Raz · 10th March 2008, 20:32

Quote:

Originally Posted by Hannah

Did she pay it in one lump sum then? Cos if she paid monthly she surely could just cancel her direct debit.

im guessing she did pay it in a oner hannah....as he stated that £500 gone....

Dez · 10th March 2008, 20:34

tbh that doesnt sound right?

because if you pay monthly they dont then send you a bill out if you want to cancel. all they will send is a letter for any charges for canceling early.

Sounds a bit wrong to me i would call them back and speak to a manager to find out why its different.

Amiee · 10th March 2008, 20:43

My ex had paid his insurance in full but then he smashed his car and didnt want it mending so they paid back an caculated amount that he hadnt used (something like 6 months) and he got pretty much half of it back.

I think the insurance company cannot keep the money. If your struggling to find anything in the terms and conditions take it to the insurance regulators

Dez · 10th March 2008, 20:44

Quote:

Originally Posted by Amiee

My ex had paid his insurance in full but then he smashed his car and didnt want it mending so they paid back an caculated amount that he hadnt used (something like 6 months) and he got pretty much half of it back.

I think the insurance company cannot keep the money. If your struggling to find anything in the terms and conditions take it to the insurance regulators

yes i think its the FSA? financial services authority . i may be wrong though

-Jason- · 10th March 2008, 20:48

Quote:

Originally Posted by Andy_S

Right,

Last year my sis passed her driving test so as you do, she went out, bought a car, insured it, blar blar blar..................3 months down the line, she had an accident and the insurers have said the cars a write off which is fair enough.

Now when she insured her car, she paid for it in full (12months) used 3 months and is now car less, she cant afford another car for a good while, so she has asked her insurers for a refund for the remainder of time left (9months) and they have turned around and basically said.....NO!

Can they do this........? or is she entitled to a refund?

More importantly since when did you have a sister lol

Amiee · 10th March 2008, 20:58

Yeh its the FSA I think

Andy_S · 10th March 2008, 22:43

Quote:

Originally Posted by Hannah

Did she pay it in one lump sum then? Cos if she paid monthly she surely could just cancel her direct debit.

Yeah she paid it in one lump sum, Ive read the terms over again and it does state that no refund will be given, which is a bugger but lesson learnt i guess, for my sis that is.

Quote:

Originally Posted by JasonVTI

More importantly since when did you have a sister lol

Your a dead man...................lol

Adum · 10th March 2008, 23:22

i work in insurance atm, but the cancellation is the same. and you will find this with nearly all insurance policies tbh.

if you have made a claim then you will not be entitled to a refund.

its all to do with the insurance company's loss ratio. basically they will keep the premium as they will have to pay out about 5 x times that amount. even without refunding, they are gunna be out of pocket.

same reason some insurance companies can apply terms at of the blue after a claim (higher excess etc) so that they can reduce the chance of you claiming, and costing them money.

i understand its a pain in the arse, but its pretty standard stuff unfortuantely

Luke · 10th March 2008, 23:23

As what Adum said.

They need to fund the claim somehow so this means you don't get a refund. That's how it's better to pay monthly.

Adum · 10th March 2008, 23:32

its harder to get premium from monthly payments, so would suggest this in future.

basically in insurance, all premiums go into whats known as a common pool, this is a 'pot' of money that all claim payments are taken from.

so all the premiums from other people that never claim, fund the people that make mistakes or are unfortunate and insurance companies need to keep the amount going into this 'pot' greater than that being taken out.

which is why they do not refund annual premiums.

it is harder to do this for policies paid monthly, so its worth payin by DD so that all you pay is the cancellation fee.