Motor Insurance due for renewal

Spongebob

Registered User
Messages
6
Hi,

I am looking for a piece of advise on Motor Insurance Policy Renewal

Four weeks ago I was involved in a car Accident and my insurer did perhaps what others insurers would normally do as this is an comprehensive insurance policy.

Yesterday I rang the Claims Dept just to check how far is my claim and they told me that they are still waiting from the garage. I got a call from the salvage garage later in the afternoon that unfortunately my car is a write off.

When I got involved in an accident, I had already finished paying for monthly premium. Two weeks ago I received a letter that my car is due for renewal for a year a head.

My question is that, why should I pay for renewing my policy for the car which is now a write off? They are also saying that if I do not they may cancel my policy and make my contract invalid and even refuse to pay any claim under this policy as well as other rights they may have under the policy. The annual premium has gone up times 2 compared to amounts paid before this accident. They also said in the renewal letter that NCD
has been affected and that now I have been put on NCD Scale of 1 from scale of 5.

Can some help me why should I go ahead and renew for the vehicle which is now a write off? I'm still waiting from Claims Department for a cheque to purchase another vehicle.
 
If you don't pay your premium for next year it's understandable that your insurer would tell you that you're not covered. Obviously they can't retrospectively cancel the insurance that covers the accident you aready had. If you're not currently driving it's reasonable for you not to renew your policy yet. Just bear in mind that if you take a break from insurance then insurers, including your current one, may refuse to quote you (although they have to give you a reason). At the moment your current insurer has to give you a quote -- it may well be that they are happy to get you off their books. Just bear in mind that if you take a break it may be more difficult and/or more expensive to get insured later on.
 
You should familiarise yourself with the terms & conditions of the policy which should be set out in your policy booklet.
That should clarify what they can do on this situation.
Because you have an unsettled claim I presume that you will not be able to shop around as no other insurer will take you on with the claim outstanding as far as I know.
As dub_nerd says having a break in cover will most likely have implications down the line.
You need to weigh up all the pros and cons of continuing cover versus cancelling cover.
 
Hi dub_nerb,

Thanks for your quick response to query and I really appreciate your time and effort. Well, well, my insurer is quoting me on the current vehicle which is a total loss this is why I don't get it. Should I keep on paying for this vehicle ? The thing is I don't know when will I get money to buy another vehicle. I'm hoping to get a another car which will be less engine size than the current one. So the best way is to accept the quotation and start paying off for annual premium for the car which isn't there yet.?.. Confusing..****
 
It's not the car that's getting insured as such, it's you, although the car is taken into account in calculating your premium. You may find that the value of the car makes very little difference to the cost of your policy. You should be able to check that with your insurer and check if you get a smaller car later on that they will give you a refund of any difference in premium. Alternatively you might be able to put the value of the current car at zero on your renewed policy until you get the new car.
 
Hi Clubman,

Thanking you for your advise . I will shop around only if my insurer settles the claim. I'm not familiarise myself with the terms & conditions of the policy as it is written in legal terms and sometimes you don't understand what they are saying. I'm not ready to cancel the insurance cover but my question is.... why are they quoting for the same vehicle which is a total loss? This is where I don't understand. Or is it that they are making assumption that the car am going to own in the future will be the same engine size ?
 
Hi dub_nerd,

Again, thanks for your reply.

I think your point here makes sense. I can just put the value of current car at zero on my renewed policy until I get the new car. But if I put the value at zero how are they going to provide quotation based at what €0.00. Or they will just make an estimation? I don't want to
take a break in my premium cover which will most likely have implications when shopping for insurance covers.
 
my question is.... why are they quoting for the same vehicle which is a total loss? This is where I don't understand. Or is it that they are making assumption that the car am going to own in the future will be the same engine size ?

They're not quoting for the same vehicle. They're quoting for the equilvant standard of vehicle. Insurance is designed to return you to the same situation before the accident.
 
Hi Guns N Roses,

Thank you for your contribution.

I got it now, so in your opinion, should I accept their quotation which has doubled, from €500 annually to €1100 annually? Or what should I say to them when renewing my policy this time? Because I don't have enough money yet to purchase another vehicle as the money from my claim would not going to match again the value I bought for this vehicle. I may have to add more money to get the same standard of the vehicle, preferably different engine size this time.
 
@Spongebob, it is clear that English is not your first language and that you are not familiar with the nuances of motor insurances Ts&Cs. For example, your comprehensive may entitle you to a temporary replacement vehicle until you put a new car on the road. To avail of this facility, you must renew your insurance. Also, with an unsettled claim your no-claims bonus (NCB) changes. You've already been advised of this and seen how your premium changes. Your comprehensive policy may protect your NCB and you may see a reduction once the claim is settled. To see this you must renew your policy.

To gain benefits from your policy, your policy must be current because you claim is current.
 
@mathepac, thanks for your reply. You are absolutely right by saying that am not familiar with the nuances of Motor Insurances Ts & Cs. Definitely am going to renew my insurance but I was just wondering why would someone pay for insurance when you don't have a vehicle. I have accepted the settlement amount and am certain to receiving a cheque in the comings days. Again, thanking you for your advise.
 
I was just wondering why would someone pay for insurance when you don't have a vehicle.

Because if they plan on getting another car withing the not too distant future, it will likely be a lot cheaper than starting from scratch with zero no claims or recent driving experience. You need to price both options and see which makes more sense.
 
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