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Anyone well-versed on car insurance?


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#1 beachgurl

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Posted 11 October 2010 - 02:31 PM

DH was driving my car a few weeks back and it was written off (he wasn't at fault). We had paid our 12 month premium only 3 weeks beforehand. The assessor calls me today to inform me that our payment will be processed soon and I asked him how much of the premium we get back. He said we don't get anything back as the insurer keeps the remainder of the premium, regardless of how much time was left on the policy. Is that correct? Just doesn't make sense that we lose over 11 months premium yet if the accident had happened a month earlier our yearly premium would've nearly been up and we wouldn't have had to pay anything extra to the insurer. When quizzing the assessor he said "that's quite unfortunate for you that you've just paid for 12 months but that's just how it is". Is it really?

#2 ♥ Emsie ♥

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Posted 11 October 2010 - 02:39 PM

From memory, yes that is correct.

Even if you paid in monthly installments, you would still have to pay out the term of the cover - they usually deduct it from your payout if thats the case.

(mind you its been 6 years since I worked in insurance)

Rego on the other hand, you will be entitled to a refund. You just need to rip the rego sticker off and take that in to dept of transport. Given its a write off, you'll need to take in the plates and surrender them also.
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#3 ~ela~

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Posted 11 October 2010 - 04:35 PM

I know nothing about insurance but that just sounds odd to me unsure.gif You must feel rather out of luck atm sad.gif I would be pulling your policy out and seeing if you can find any info, or at least call and push for some kind of refund.

I'll give another example. We had insurance through RAC, Brett sold his car and as we paid his policy annually they sent us a cheque for $XXX amount of money - they worked it out on the date we sold they car. This was about 18 months ago and we had about 6 months left on the policy.

I would feel rather ripped off TBH if that happened and they didn't refund the premium, or am I just out of the loop with how insurance works? wacko.gif

#4 Miss Em

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Posted 11 October 2010 - 05:46 PM

Unfortunately that is correct. When your car is written off you need to have paid the full insurance premium.

#5 bluenomi

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Posted 12 October 2010 - 07:55 AM

You don't get any money back because you have used the insurance by claiming for the written off car. They are paying you out so are holding up their end of the insurance policy so you have to hold up yours and pay the full premium.The timing was just bad in your case which sucks.

You get money back when you sell the car because you are giving up the right to make any claims for that car and are terminating your policy.
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#6 Lizzie1

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Posted 12 October 2010 - 08:03 AM

Wow I didn't know this. If he wasn't at fault, doesn't the other car have to pay for the damage? Assuming they had insurance that is.
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#7 squeaza

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Posted 12 October 2010 - 08:06 AM

QUOTE(bluenomi @ Oct 12 2010, 08:55 AM) View Post

You don't get any money back because you have used the insurance by claiming for the written off car. They are paying you out so are holding up their end of the insurance policy so you have to hold up yours and pay the full premium.The timing was just bad in your case which sucks.

You get money back when you sell the car because you are giving up the right to make any claims for that car and are terminating your policy.



See this makes sense, but not so much if the accident is someone else's fault and their insurance is paying for it wacko.gif

Unfortunately, it is the case that even if you're 1 day in you have to pay for a year... I can't see the logic in it because they wouldn't get that money if you had a crash the year before your insurance ran out. Just a way for them to make more money I guess!

There are exceptions though - both mine and my brother's cars were written off in the big hailstorm here in March this year, and Aami basically left most people's policies open and just let us transfer a new vehicle onto the policy. Because our new one was worth a bit more it cost us $6 to change the insurable amount for the rest of the year.

I had a friend whose car was written off (by a P-plater in their first week of having a license) the day after they bought it sad.gif They had the same thing - lost their year of premium sad.gif
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