Car Insurance Instalments

[shiznit]

If you pay your car insurance monthly and you have an accident, say 7 months into the policy, do you have to pay the remainder of the policy off out of your payout if the car is wrote off?

Thanks

[Cockney_si]

yes, what you owe is deducted from the settlement amount

[treetops1]

Yes, it wouldn`t be fair on those who`d payed the full amount otherwise.

[ubasses]

yes you do not actually pay your insurance in installments. The Ins Co lend you the money and you are paying them back. Any accident and you have to go on paying back the loan.

[shiznit]

The reason I am asking is because this has obviously happened to me, and when I was telling my Uncle who had just had his car written off by my Aunty, he told me that he paid his insurance in full and that he had the remainder of his policy refunded.

Also, I am still paying on my policy, as I changed the details of the account to my new car, same payments as last time

[Old Salt]

Simpliest way to look at shiznit

You agreed to pay them for one yearof cover. They agreed to let you pay it monthly. Therefore, you owe them the whole amount, plus interest for monthly payments, plus whatever they may charge for administration.

If they transferred the insurance to you new car, then the policy continues, (unless they inform you of changes), same as if you had a fender-bender, got it fixed and carried on.

It is something you really must discuss with the insurance people, just to be absolutely sure that you have insurance and exactly how much you owe.

Been there, done that, got the T-Shirt, and took a bath in it.
Old Salt

[R1Geezer]

essentially there is no such thing as monthly paid insurance. insurance is an annual contract, some companies let you pay monthly but you actually take it out for a year. If you cancelll part way through a year you usually get some sort of refund dependent on the rules of the insurer.

[ABerrant]

"...no such thing as monthly paid insurance..." is a bold statement to make.

Not all insurance is an annual contract. What is generally referred to as "car insurance" is indeed meant to convey that coverage is for a 12-month period and will be true for the vast majority of motor policies, however other periods of insurance do exist...

http://www.ecarinsura...asyougo.php/index.php

[R1Geezer]

well as this section is motoring, I was referring to motor insurance.

[ABerrant]

...So was I

[ummmm]

But you can get day cover..

[R1Geezer]

alright alright for the pedants, nearly all motoring insurance is quoted by the year, happy!?

[ummmm]

Yep...

Has anyone noticed how little you get discounted if you pay annually?

[R1Geezer]

for annual policiies they quote the annual prices. If they let you pay monthly, then they add a load on.

[ummmm]

I checked out the difference when I was renewing and it was only about £30. Still, prefer annually...

[boxtops]

I'd pay annually if I could afford it, and save the monthly fee, but I can't.

[shiznit]

I normally pay for the year but they were doing interest free but over 10 months. Any way, I sort of got my money back, they paid off my cover for a year and sent me the rest, so not too fussed about that, thank you for all your answers.