Car insurance?monthly payments..?

Question

Right i need some advice on anyone who knows anything about car insurance..i had a car which i had 4 years no claims on i insured another car with the saame company and they wrote to me asking for proof of no claims..considering this is the same company they should have these details?

I then had a car accident and my car is a right off..i was not happy what with the company offered me for it...basically nothing...when i know for a fact it was worth something..trying to rip me off so i have decided to take this case further..i then recieve a letter saying my monthly instalments are going up cause of accident..my monthly instalments are for the car that is now undriveable!!

I called today and they said yes you carry on paying until the whole payment is cleared..this is in 11 months!!so is right i will paying monthly for a car that i dont even have any more..take in to account im also taking this matter further about what they offered me for the car..any decent advice would be great

thank you very much

Answer 1

chickie is 100% correct.

Answer 2

Unfortunately, when you pay by instalments, you're actually buying your insurance on finance.

Your insurance policy comes into force on the date you take it out - this is also when you should pay for it.

If you elect to pay by instalments, you are just electing not to pay for your insurance all at once, but spread the payments out. The money is still owed, so you can't stop paying at any time.

As far as the valuation of your car goes, remember that the country is flooded with used cars, so check that you're expecting a reasonable amount for your car. A good guideline is using Parkers text check;

http://www.parkers.co.uk/sms/

Bear in mind that if you dispute your insurer's valuation, they may adjust the price down as well as up.

Answer 3

Regarding the request for proof of no claims - they probably thought you had insured the car elsewhere previously.  If this is a new car then (or a used car that is new to you) just telling them this should suffice.  When a car is totalled, the claims department does not ask the processing department to remove the car from your policy because they don't have that authority, even if you signed the car over to them and they took possession of it.  this is because most states require that any car that is still registered per DMV records must carry insurance, regardless of whether it is drivable or not.  If you have not already done so, turn in the plates and send proof of this to your insurance company with a request to delete the vehicle.  The insurance company must leave the car on your policy and therefore charge you for it until you turn in the plates and give them permission to delete the car.  They will credit you the cost of insuring that car from the date it is deleted until your next renewal, and adjust your future payments accordingly.

Answer 4

when you set up an insurace policy they your contract is for 12 months for any incident in that time, you do have to pay the whole years insurance when you have made a claim

you should be able to switch over the policy over for the remainder of the year if you get another car to make use of what you have to pay anyway.

no claims can only be used on one car at a time so if you insured another car with the same company they will need a seperate set of no claims proof from you as you cant use them on two policies at the same time so it looks like the extra you have been told to pay is because you dont have two sets

im not 100% if thats what your asking about but i hope it answers your question

Answer 5

What they are telling you is correct.  All you are doing is re-paying a loan to them.  Never make monthly auto insurance payments.  It usually costs more anyway and as you have now found out, is not wise.  If you can't make the semi-annual insurance premium payments, even taking out a loan from a bank to pay them is safer and smarter and costs less in the long run

Answer 6

I think you might have a case, perhaps you should get a lawyer to fight it for you.

Answer 7

There are several areas contained within your question which are confusing. In order to clarify your problem, I have broken down the issues and offered a reply to a couple which I hope helps:

1)  What is the gap between taking out a new policy and the old one you held with the same insurer?  Your No Claims Bonus reaches a point in time when it is no longer valid.

2)  When you purchased the new insurance contract, did you state the name of the Insurer and the last policy number?  Although you say it's the same company, it is very rare they will check their records just in case you may have been insured with them.

3)  What was the purchase price of the car and what was the amount offered?  I assume you were Comprehensive, and if so there will be an excess deducted from the offer made to you. This should be added back into the amount of the Insurer's offer to give a clearer picture. Once you have the figures in this format, you can then start looking at searching the Internet for comparisions against the make/model/year/condition/mileage etc to see if they are out in their valuation. You can instruct you own Engineer but this will add to be expenses and you may not get your outlay back unless there is a significant difference between both valuations and it is in your favour.

4)  You do not mention whether you were at fault in the accident or if there is another party involved. If you are not at fault and the identity of the other person is known, then you may be able to persue a claim against the Insurers of the other vehicle together with any out of pocket expenses. This is usually referred to as 'Legal Fees' cover and you may have already purchased this when you bought the insurance cover.

5)  You probably received the letter from your Insurers as a result of them not having exact information of your 4 years bonus. The increase in the payments probably reflected on the amount of discount that was allowed against the insurance premium you orginally agreed to. If this was the case, once they had the details of your last insurance, they would have re-issued your payment schedule. They would not increase the instalments as a result of the accident if the incident date is within the same policy year.

6)  Your insurance premium was funded by Insurers at your request and it becomes a debt in the same way as every other financed purchase. You will probably find that the money you owe will be deducted from the settlement figure as they automatically become the 1st Creditor to the claim.

7)  Once you have looked at the areas of concern, this may give you a clearer understanding of how the insurance business works.

It is an easy option these days for a lot of people to shop on-line and purchase insurance not just for motor but also property, and yes you can get good deals; but when it comes to needing help to explain what can be complex areas you need the services of an independant Insurance Broker who is there to offer you friendly help and clear advice.

It's no good talking to a Nodding Dog or a Red Telephone or even an Elephant as they cannot give you impartial advice.

Hope this helps you further in your quest.  

Good luck

Answer 8

You really have to ask the superintendent of insurance, or the equivalent government office about the premium  I am a broker in Winnipeg, in Canada.  If one of my clients has a car that is written off, he is given a letter the day they settle on the amount, stating the day the actually took possession of the car, which is the day it was towed into the yard.  If the person is not buying a replacement vehicle right away, to transfer the policy to, he brings the letter to my office, and we backdate the cancellation to the date the insurance company "bought" the car from him.  This is, obviously, the only fair solution.  However, the law may permit a company to extract a whole term premium in your place of residence, which is why I suggest the government office in charge of regulating insurance companies.

If you have not settled your claim, that opens up another kettle of fish.  To convince the company the car is worth more than the offer, you need comparison valuations from dealer ads, newspaper ads, on-line ads, etc for basically the same car, similar condition and mileage, showing everybody really is paying more for the same vehicle.

Answer 9

They are right to take payments as this is the problem with monthly payments it's a "loan".

Answer 10

you are not financing you payments if you choose to pay them in installments. this is why you pay less if you pay in full they cannot change the terms of the contract what they are doing is illegal. and you should see a soliciter

Answer 11

Cancel your policy at once and instruct your bank to stop their direct debits.

Answer 12

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