Jobs & Education4 mins ago
Insurance
6 Answers
My son had his car made uneconomical to repair by his insurance company. He decided to buy it back and have it repaired at a cheaper garage. The insurance company want to take �500 for the instalments left on the insurance. Is this legal and if it is, how can my son get the full book value of the car as this is a lot to loose.
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For more on marking an answer as the "Best Answer", please visit our FAQ.I assume your son is paying for his car insurance in monthly instalments.
The simple fact is that he paid for the insurance in a lump sum with finance provided by the insurance company. He is probably paying interest too.
Your son now has a loan with �500 outstanding and the company is entitled to its money.
The simple fact is that he paid for the insurance in a lump sum with finance provided by the insurance company. He is probably paying interest too.
Your son now has a loan with �500 outstanding and the company is entitled to its money.
Absolutely correct. If you buy an insurance policy one day and the car is written off the next, the insureres pay out for the total loss but you forfeit the cost of the premium for the remaining 364 days of the policy.
As Ethel says, although some insurers provide a monthly payment plan, the policy is in fact for a year. The company is quite right in this case to deduct the outstanding premium due.
As Ethel says, although some insurers provide a monthly payment plan, the policy is in fact for a year. The company is quite right in this case to deduct the outstanding premium due.