third party insurance problem

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Sun 31 Aug 2003 19:23
third party insurance problem - andypercy
The problem.

Third party insurance taken out a few days ago.

Car in accident, no others involved, no other damage, car is scrap and towed away.

Insurance is on a monthly payment basis, just a hefty deposit paid.

Need to surrender policy, will hopefully get some of the deposit back.

If we inform company of the accident will we be able to surrender the insurance? Or do I end up paying the full year?

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Sun 31 Aug 2003 19:58
third party insurance problem - DavidHM
The answer will be somewhere in your policy documents. Mark (RLBS) will tell you exactly where but it will be in there somewhere.

My last two policies have worked on the basis of roughly 75% surrender value within the first month, less an administration fee (of roughly £30).

So if the premium was £800, you paid £200 deposit and the first monthly instalment of £70, you would get back £40 less some interest.

However, if you plan to replace the car at all, unless your current insurer is wildly uncompetitive, you may find it cheaper to let the policy run.

Furthermore, if you then get insurance on a replacement car, you will have to declare this accident, even though no claim was made. Hopefully, by continuing the policy, you would not have to be assessed on the basis of this accident until you have built up a year's (extra?) no claims.

Also, most if not all insurers will change the car on the policy on a pro-rata basis, so instead of cancelling the policy and losing (say) a quarter of it, you would only pay an administration fee plus the remaining 11/12 of the policy assessed on that car, less the deposit of course.
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Sun 31 Aug 2003 20:13
third party insurance problem - mal
If you have insured with AXA you will get a full refund on a pro-rata basis, don't know about any other ins. co..
I have all my insurance with AXA as do the rest of my immediate family and no, I do not have any other connection with them I just think they are a good company and very competitive also.
Mal.
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