10 Responses for "Why am I paying insurance on a car that is written off?"

1. selena gomez February 4th, 2010 at 3:03 am 1

   Hi I know where you are coming from because I have been there. However the broker is correct.When you took out your insurance you agreed to pay the full fee for the year to cover your car against damage or loss ( in the event of loss the policy ends (see your terms and conditions).The insurance company has then let you pay for the insurance on credit ie monthly payments. (you dont pay for each individual month but for the full year).The insurance company has kept to there contract and have paid out for your car and the policy has now ended so they have then taken the rest of the owed fee from your pay out and will stop the monthly paymentsIts the same as buying a holiday on a credit card, taking the holiday and then refusing to pay the credit card bill because you have had your holiday. Kind regards Technical

2. selena gomez February 4th, 2010 at 3:03 am 2

   Im assuming you are in the UK.As you crashed you cannot cancel your insurance and get the remaining money back.However, all is not lost. You can transfer the remaining insurance to another car Source(s): Happened to me

3. justin bieber February 4th, 2010 at 3:03 am 3

   you entered into a contract of insurance that lasted 1 year so they are right to deduct the balance from your settlement as otherwise you could just cancel the direct debit and default on the remaining payments. Source(s): ins broker.

4. selena gomez February 4th, 2010 at 3:03 am 4

   Was the cheque written on the broker's account, or the insurance company account? In Canada, brokers do not act as insurance companies, and your cheque would be calculated and written by the insurance company. If that is the case, your broker may be able to get information, but probably had nothing to do with the calculation. It does sound odd. If they have kept premium to next March, then they would have to credit that to premium on your next car. But I have never seen a policy that wasn't cancelled as of date of loss, or date of claim closing, depending on the type of claim and when the insurance company took possession of the car.

5. taylor swift February 4th, 2010 at 3:03 am 5

   Technical has it right, for the UK. What happened when you took out your cover was that the insurers allowed you to spread the cost of the premium (which is the charge for 12 months cover and technically is payable up front, just the same as with any purchase) over 12 monthly payments.Effectively they loaned you the money to pay the premium and you then have to repay that loan. It's just the same as if you borrowed the money from the bank, you have to make repayments, either in the routine way of month-by-month or in one lump sum to end it all.

6. justin bieber February 4th, 2010 at 3:03 am 6

   I'm not sure where you are, but in the USA (and specifically California) this is not appropriate. They prorate the policy from the date the car had it's accident (or at latest the write-off date). You need to call your insurance agent about it and make them justify why the charge was made for the whole policy period. If he/she says that is the way they do it, make them provide written proof to you or better yet, tell them you would like to know the section in your policy where that is stated.It ain't kosher what they are doing. Something smacks of greased palms here. Source(s): I stayed at a Holiday Inn Express last night!!!!

7. justin bieber February 4th, 2010 at 3:03 am 7

   Your CONTRACT with the insurance company was for one year of insurance to be paid by instalments. The insurance company did not write off the car you or someone else did. If it was not you then pursue the other person for All your expenses and losses.

8. selena gomez February 4th, 2010 at 3:03 am 8

   you need to check the small print on your policy, it may be that you were contracted to a minimum policy duration and as your car was written off before the end of it you are liable for the rest of the premiums.

9. lady gaga February 4th, 2010 at 3:03 am 9

   I wrote one off and cancelled my direct debit for insurance straight away. All they did was asked me if I'd like to restart it in case I bought another car but I certainly didn't owe them anything and I'd only had my insurance for 2 months at the time.

10. taylor swift February 4th, 2010 at 3:03 am 10

    If the broker took ￡280 out of your settlement for paying the premium, all you have to do is cancel the direct debit mandate.Also you should of course cancel the insurance.Only you can do this. None of this happens by magic. Source(s): Always read the small print before you sign.