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Insurance write-offs - soggy tintop
vinny1275 - 10/8/07 at 09:14 AM

Hi all,

Thanks for all the replies about my water-damaged Mondeo. It did suck in water, and did need a new engine, but because of the water damage to the interior, it was a write-off.

the Insurance company have cancelled my policy, come up with a (fair) valuation of the car, along the same lines as my own, which was surprising, but they say that as I had a total loss claim I don't qualify for a refund on my policy, but if I took out another policy with them on my next car, they'd discount it to the same value.

Is this right, or should I push for a refund? I had about 8 months left on it (and paid it all upfront). If you pay by installments and they cancel it, surely they can't claw in the remaining unpaid payments.

TIA


Vince

smart51 - 10/8/07 at 09:56 AM

Check the terms and conditions of the policy. If it says "in the event of a total loss claim, the policy will be canceled" then you have agreed to that term.

MikeRJ - 10/8/07 at 10:02 AM

quote:
Originally posted by vinny1275
Is this right, or should I push for a refund?


That's absolutely normal, all policies work like this AFAIK. Having made a total loss claim, the insurance will now be canceled as the car the policy covered no longer exists in the eyes of the insurance company. It's quite nice of them to offer to knock the balance of your next policy though, as long as they don't load it by an equivalent amount to begin with...

This prevents people paying one months premium, writing off their car and claiming almost everything back.

indykid - 10/8/07 at 02:54 PM

if you've paid installments, i though in the event of a total loss claim, you had to pay the policy in full for them to pay out, or it'd be taken off what they pay out anyway?

in which case, you'd be in the same situation either way.

tom

speedyxjs - 10/8/07 at 04:14 PM

I think thats fair but it will probably be worth going with them on your next car

matt_claydon - 10/8/07 at 04:18 PM

quote:
Originally posted by vinny1275
If you pay by installments and they cancel it, surely they can't claw in the remaining unpaid payments.


They just take it off the amount they pay out. As to their offer of a discount off a new premium, sounds abnormally reasonable for an insurance company to me