Fisherman Mike Posted February 19, 2015 Report Share Posted February 19, 2015 Anyone work in car insurance ? As posted previously, My Daughter was tailed ended when stationary at a pedestrian crossing about a month a go. Her Car was written off and the other party accepted complete liability. She has received a settlement figure for her car approx £5,750.00 less the outstanding finance which she had on it approx £1,400.00, which she agrees with. Expecting to see funds of £ 4,350 in her account, a figure of £4,050 turned up. Her broker (Hastings) explained that they had deducted the balance of her remaining policy which she pays monthly up to its next renewal date which is December next. I've looked the through the policy documents and cant see any wording or conditions to this affect. Can they do this and is it normal.? She hasn’t cancelled the direct debit for her monthly premium and was expecting to just transfer the policy to her new car when it arrives. Any one have any knowledge of this and is it right. ? It seems as though she is at a financial loss due to something which was just not her fault and it seems very unfair. If she subsequently goes back to Hastings to insure her new car are they going to give her a credit ? Thanks, Mike. Quote Link to comment Share on other sites More sharing options...
TIGHTCHOKE Posted February 19, 2015 Report Share Posted February 19, 2015 Ask Hastings, I was about to insure with them recently but didn't like some of their questions! Then there is the Insurance Ombudsman to seek guidance from. Good luck to your daughter. Quote Link to comment Share on other sites More sharing options...
AdamW Posted February 19, 2015 Report Share Posted February 19, 2015 I think this is normal, they are only asking for to be paid for the service they have provided (as long as it continues full term) Quote Link to comment Share on other sites More sharing options...
chady Posted February 19, 2015 Report Share Posted February 19, 2015 I can't really help you but Hastings had me over good and proper! I would not use them ever again. And I'm not the only one. There was a chap one hear not so long ago who had the same problems. Good luck Quote Link to comment Share on other sites More sharing options...
debaser Posted February 19, 2015 Report Share Posted February 19, 2015 If it's her insurance (Hastings) paying for a total loss then I think it's normal procedure. However surly the other driver is at fault and no claim is made on her insurance? Quote Link to comment Share on other sites More sharing options...
amateur Posted February 19, 2015 Report Share Posted February 19, 2015 (edited) Isn't this standard with insurance policies? You insure for a year against an event happening at any time during the year, and if the insured item ceases to exist (written off), the premium is still payable in full. The fact that your daughter has an arrangement to pay monthly is surely a finance deal, not insurance. Taken to its extreme, you could write off a car the day after it was insured, would you then expect the insurer to refund 364 day's worth of premium? It might be worth pursuing the other driver for the uninsured loss Edited February 19, 2015 by amateur Quote Link to comment Share on other sites More sharing options...
SNS Posted February 19, 2015 Report Share Posted February 19, 2015 Isn't this standard with insurance policies? You insure for a year against an event happening at any time during the year, and if the insured item ceases to exist (written off), the premium is still payable in full. The fact that your daughter has an arrangement to pay monthly is surely a finance deal, not insurance. Taken to its extreme, you could write off a car the day after it was insured, would you then expect the insurer to refund 364 day's worth of premium? It might be worth pursuing the other driver for the uninsured loss Though of course when you cancel part way through the year they refund you (less admin charges and costs) the rest of the premiums. After all their premiums, to a degree, are supposed to be priced on risk - and if you are not going to be driving the car for the rest of the year, then they have little risk against which to insure. I'd have a chat with the ombudsman's office - charging all of the outstanding premiums, if not provided for in the contract, seems a bit over the top by reference to their guide on charges for cancelling annual contracts, and even if provided for in the contract may not be enforceable in any event, given the Unfair Terms regulations Quote Link to comment Share on other sites More sharing options...
mike69 Posted February 19, 2015 Report Share Posted February 19, 2015 mike pm sent Quote Link to comment Share on other sites More sharing options...
andypaint Posted February 20, 2015 Report Share Posted February 20, 2015 Don't worry, as other driver admitted liability then whiplash, loss of earnings, nightmares, flashbacks, sore back compensation payout from a no win no fee company will buy her a lovely new car. Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted February 21, 2015 Report Share Posted February 21, 2015 When my niece wrote hers off they didn't take the remaining payments off her settlement, They just cancelled the remaining policy. Has your daughter bought another car and continuing on with the insurance? If I paid up front for 12 months insurance then wrote the car off, not planning on continuing the policy for any reason then I would expect a refund of any outstanding months (less fee for cancelation) Quote Link to comment Share on other sites More sharing options...
Twistedsanity Posted February 21, 2015 Report Share Posted February 21, 2015 The answers you seek are in the T&C's of the policy you are concerned about, sounds unusual practice but you need to get a magnifying glass out and read the small print to be sure they are playing by the rules Quote Link to comment Share on other sites More sharing options...
LondonLuke Posted February 21, 2015 Report Share Posted February 21, 2015 I cancelled two policies last month one two different vehicles with two different insurers. Both paid a year in advance and both refunded the remaining months (minus cancellations fee) Quote Link to comment Share on other sites More sharing options...
amateur Posted February 21, 2015 Report Share Posted February 21, 2015 Surely the difference between the cancellations noted above and Mike's circumstance is that the insurer had paid out on a complete loss, therefore the insurer had fulfilled the contract. Quote Link to comment Share on other sites More sharing options...
Fatcatsplat Posted February 21, 2015 Report Share Posted February 21, 2015 Surely the difference between the cancellations noted above and Mike's circumstance is that the insurer had paid out on a complete loss, therefore the insurer had fulfilled the contract.That's correct, but in this instance it was a no fault claim so effectively, when she buys her new car, she transfers it to this policy on which the balance has been paid. Take a look in the policy at cancellation and in the key facts document - or just give them a quick call. If you are going to issue threats, don't bother with the ombudsmen, tell the you will report it as a complaint to the FCA as they aren't treating the customer fairly (TCF) - Breaching TCF should make them listen and respond accordingly. Quote Link to comment Share on other sites More sharing options...
norfolk dumpling Posted February 22, 2015 Report Share Posted February 22, 2015 Check policy wording carefully as a write off does normally mean policy cancelled - its usually described as 'the subject matter of the policy (car) no longer existing therefore policy of no effect' or suchlike. However if a car is bought soon after (no time limit in law) the policy can be allowed to continue. NCD possibly affected if policy cancelled part way through the year - another reason to continue to normal renewal. The other aspect you might consider is uninsured losses - this could be added to TP claim if you haven't already concluded withTP. Haven't heard anything good about Hastings but there is the ombudsman if they won't listen to your complaint. Quote Link to comment Share on other sites More sharing options...
Konnie Posted February 22, 2015 Report Share Posted February 22, 2015 sorted fathers insurance out on a second car the other month, his first is with hastings have my doubts about them after looking for second dealings with them. atb with you and your daughters situation. Quote Link to comment Share on other sites More sharing options...
foxy bingo Posted February 22, 2015 Report Share Posted February 22, 2015 I would have been happy that my daughter walked away from the accident, loosing a few quid I would take on the chin Quote Link to comment Share on other sites More sharing options...
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