My son bought a car about 5 years ago and was rear ended, very soon after, the car was written off. Not his fault. Insurance paid him out between $4 and $5000. Shortly after, about 2 months later, he managed to crash and write off another vehicle, deemed his fault, which insurance payments covered. After that right or wrong he stopped making payments, for what reason I do not know. He did not cancel his policy. Now today he has received and account stating that he missed his latest payment, due 7/01/17, and he owes insurance company $977.38. What is going on here. They wait over 12 months to do this, suspect. Surely if a client fails to pay premiums insurance lapses. Can they do this, is it legit. Car is worth between $3500 and $4000 I would be interested in opinions.
mouse265,
Feb 15, 5:16pm
maybe the first port of call is your son contact the insurance company as they are the only people that could explain it but usually insurance policies are annually
lythande1,
Feb 15, 6:44pm
Insurance is renewed yearly. The only dodgy one here is your son
pico42,
Feb 15, 10:27pm
The insurance policy ended when the vehicle was destroyed and he was paid out for it. This means all premiums are due. What is the $977.38 comprised of? Just premiums, or overdue interest too?
However it does seem odd that you take issue with the insurances companies invoice, yet appear to brush over your sons failure to pay the premiums. What’s with that?
pauldw,
Feb 16, 4:46am
If the car was written off and he was paid out usually any outstanding premium is deducted from the payout.
"The Pre-Accident Value provided by the Assessor does not take into account any Excess or Unpaid Premium (if you pay your policy by monthly instalments we will calculate the remaining premium due for the policy period), which may need to be deducted. Once we have received the Assessor’s report, we will contact you with the final settlement amount."
maclad,
Feb 16, 5:47am
I'm not brushing over anything, just trying to understand why they would wait over a year to send a bill. The previous account had been paid in full at the time of the accident. Would they have paid him out if during the last year if he had an accident and unpaid premiums. Guess he should have let them know he was not paying anymore premiums and that is his fault.
dibble35,
Feb 16, 7:00am
Sounds like the policy wasnt cancelled - his fault or Insurance companies? Only way to find out is to call them.
supernova2,
Feb 17, 11:39pm
There is something just not right here.
Apparently son stopped paying premium about 5 years ago yet just gets a bill saying he missed a payment in Jan 2017.
Actually sounds to me that it's just the annual renewal notice for a full year and that the last payment was made in 2017 (ie last year).
majoba,
Feb 19, 1:34pm
But insurance is on the vehicle, not the person. So did he buy a replacemenet vehicle which was insured until he ceased payments?
maclad,
Feb 19, 4:14pm
Mmmm not sure but I am beginning to think this is just a standard annual letter. Not going to worry about it any more. letter
elect70,
Feb 20, 1:55pm
Unless he canceled the policy it stayed in affect so yes hes liable for back premiums . Unless car was wrtten off . dont ignore it otherwise they will just keep sending notices . Same as if you sell it cancel the policy .otherwise they assume you still have it & want insurance to carry on .
maclad,
Feb 20, 4:12pm
Both vehicles were written off. I wonder, on the basis of being billed for back payments of premiums, If he had another accident would insurance have paid him out with lapsed premiums. Could be a very grey area,. If they wanted this bill paid why did they wait over a year to send notification.
d.snell,
Feb 20, 4:53pm
If you have insurance, it has an annual premium payable 12 months in advance. i.e. from the day you take it out until the 12 month anniversary. If you choose to pay it weekly, monthly or quarterly, you still need to pay the full 12 months. If after 2 months you stop paying, you are still liable for the next 10 months.
average2poor,
Dec 21, 5:16pm
Sounds like the policy was not cancelled and the letter was the renewal letter for the new period?
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