Insurance Question

[Patski]

Hi guys not sure where I was meant to post this so figured here is the right spot - I have an insurance question that maybe some people could shed some light on.

My girlfriends Mazda 3 got written off a few weeks back due to someone else smashing into her. She's with RACV and she had agreed value and is about to receive a payout. Now, she pays for her policy monthly (it started in February 2008). I always thought it was the case of you kind of pay as you go in terms of insurance cover.. in this case monthly.

She just got her payout figure for BUT they want her to pay out the remainder of her policy until February next year? Which equates to $662 for a car she isn't even driving any more.

If this is general practice of how it works then that's ok but it seemed a bit off to me. So when they pay her the payout in the coming days they automatically deduct the $662 from the payout - which is weird considering we a) paid monthly and b) no longer have it.

Just wandering if anybody could shed some light on this. Thanks.

 

[tweak'e]

not sure over there but yeah insurance is normally per year so if paying monthly you still have to pay the rest.
my latest insurance co one doesn't even give you the option to pay monthly. you can do it via a third party but you get stung big interest.

 

[Lever]

If it is a year long insurance on a car, and you sell, wreck, stolen, after six months or so etc..
Can't you just cancel your insurance and get a refund, prorata.
I assume just because you pay monthly, that you would calculate for the year,
then get a prorata refund.

 

[jjohn]

Standard practice. Yes

 

[mike1303]

ring them up and say look shes getting a new car If your willing to work out something well come back or well be taking out business else where for the next 6 years....

just be sure to get a quote on the new car before hand to see if they divide the 600 over 12 months and get it back eventually anyway

 

[Patski]

Yeah thanks for the reply guys.

From what we have gathered this is pretty standard - but I'll be ringing to see what kind of deal we can get for insurance on her new car or we will be going elsewhere.

Appreciate the reply's.

 

[bennyb]

i am with racv also and when i sold my commodore to get the nav, obviously i cancelled the insurance on it (i pay yearly) and they refunded how ever many months i had left on it.

 

[d22dave]

Whenever you claim on a policy for a payout that policy ends and you lose the remainder of any time left on it. Pretty sure its standard practise

 

[jjohn]

Yeah thanks for the reply guys.

From what we have gathered this is pretty standard - but I'll be ringing to see what kind of deal we can get for insurance on her new car or we will be going elsewhere.

Appreciate the reply's.

I just bought insurance from suncorp who I have 3 policies with. It was $1,056. I rang around and got a better price. Rang Suncorp back and they found a EOFY discount to $925.
I can't earn $131 in 30 minutes anywhere else.

 

[unkn0wn]

I spoke to RAC recently as i wanted to change from monthly billing to yearly...they said my current terms ends early next year and I cant makes changes until then.
I did not put any thought into it and kinda thought they were BS me.

But after reading this thread it kind of makes sense, that when you get insurance your under a 1 year contract type agreement that your either paying monthly or yearly, and needs to paid out on the event something does happen to the car that ceases the policy.

Cheers for clearing all that up.

 

[mike1303]

Shouldn't the person who hit you have to pay?
Not only are you out of a car until it's fixed/replaced but now you're slugged with a bill too!!

 

[d22dave]

Depends if you're claiming against their insurance it shouldn't cost you. But if your going through your own policy you could be up for your excess