I was planning on selling my car but then had an accident. My car has now been repaired and has been returned to me, but the other party is claiming against my insurance and is also making a personal injury claim via their solicitors. This is being dealt with by my insurers as Legal Protection was included. Should I wait until the claim is settled with the third party or can I now sell the car as I originally planned? If I do sell,should I cancel my car insurance (I no longer need this as I am going onto to a company car scheme) or leave this in place?

In my view, you should leave the insurance policy in place in case the insurer decides to start arguing about whether you are covered at the time of the claim or not. The insurance policy will not be valid after you've sold the car. For this reason only, I would be inclined not to sell the car just yet.

You are entitled to sell the car as it belongs to you and you should certainly consider doing so, if you wish, once the claim has been recognised. You will need to notify the insurance company once the car has been sold and they might even give you a few pence refund for the unused part of the policy.

Hi Tim,

You'll have to excuse Maxsteam; it finds it nearly impossible to help another member without it slating the insurance industry and giving poor advice... which doesn't help anyone!

You are able to sell the car as planned. If the claim is going ahead with no problems, then you have satisfied the insurer that you have adhered to conditions precedent to contract, subsequent to contract and subsequent to liability. The policy was in force at the time of the loss and will award damages to the amounts that the insurers will negotiate. Personal injury claims can drag on for months and years, and therefore forcing the client to stay with the same insurer on the same renewable contract would be unreasonable, which is why it doesn't happen.

Contrary to Maxsteam's bee-in-bonnet remark, you won't receive any premium refund on this policy and you may be required to pay the (remainder) premium in full, but you will need to inform the insurer that you no longer have the vehicle in your possession.

"you won't receive any premium refund on this policy" - who is slating the insurance industry today?

maxsteam:"you won't receive any premium refund on this policy" - who is slating the insurance industry today?

LOL - YOU are! I'm giving the OP the correct advice! Why should an insurer pay out for damages and then refund a proportionate refund? It's common practice that after a claim has been made, the premium gets paid in full! It's like saying a person insuring their property for £250 a year makes a claim for £120,000 rebuild to the property 3 months into the policy... then expecting the insurer to refund 9 months of it!!!??

I have never known anyone commenting on insurance to think so illogically!!??! It's actually quite worrying!!

To me it's logical that if you use a policy for 9 months then you should pay ¾ of the annual premium (or have ¼ refunded). The logic of this shouldn't be too hard to grasp. Insurance companies tend to do the logical thing less a huge cut for "administration costs". It doesn't surprise me that they will use the excuse of a claim to reduce the refund due to nil but it does surprise me that it can be justified by logic.

maxsteam:To me it's logical that if you use a policy for 9 months then you should pay ¾ of the annual premium (or have ¼ refunded). The logic of this shouldn't be too hard to grasp. Insurance companies tend to do the logical thing less a huge cut for "administration costs". It doesn't surprise me that they will use the excuse of a claim to reduce the refund due to nil but it does surprise me that it can be justified by logic.

Maxsteam. Do you know what "Contract" means? Do you understand the repurcussions of ending a contract early in ANY industry? Define "if you use a policy for 9 months" please. Bearing in mind the use of the policy is solely peace of mind and protection until a claim arises. Therefore a policy that runs for 9 months, then cancelled is not fully 'used' physically as such, which is why the proportionate refund is given less administration. You are charged for the time on cover because the cover was in force READY to use should something unexpected arise. This IS insurance. "A risk transfer mechanism for the protection against a fortuitous event". If a claim does arise at any stage, then you have used the policy to its maximum usablility. The premium will increase inline with the added risk factors.

If you open sealed packaging containing a pie, accepting that you can see the pie through the packaging but not yet taste the ingredients, and you only eat three quarters of it, do you take it back to Sainsbury's requesting a proportionate refund for the quarter remaining! No, you throw the unused remainder away if you have no intention of eating it. You therefore discard the £/p proportion. [ ] <-- Box. Think outside of it!

It's up to you if you wish to continue discussing insurance in the forums, but might I suggest you read a book or take classes before posting ridiculous answers to questions that require a sensible answer (Ref to: Premium Increase). You're potentially adding to people's problems and certainly not doing yourself any favours!

If you buy a pie from Sansburys, eat part of it but don't like it, you can take what's left back and get a refund (it would be a full refund in this particular case).

Insurance companies could learn a lot about customer services from companies like that. It's not an obligation or a legal requirement. It's just how Sainsburys and other successful supermarkets treat their customers. I've got something from Asda's "Smart Price" range in my hand and the message on the side of everything in that range is "We'll refund or replace if you are not 100% happy" - and they honour that promise. It seems that, in your world of Astons and Bentleys Mr V, you did not know about how normal supermarkets work.

Insurance policies are much easier to divide than a pie in a box. When there's a valid policy, there's a risk to cover. When there isn't a valid policy, there's no risk.

The insurance company will not pay out for any claim made after the policy ends so Tim should get a refund for that time.

If you buy a pie from Sansburys, eat part of it but don't like it, you can take what's left back and get a refund (it would be a full refund in this particular case).

A satisfaction guarantee, yes. The maximum usablility of a pie is when it has been eaten. The maximum usability of an insurance policy is where a claim arises and is paid out. An Insurance policy is a different product to a pie. You have evidence that a policy is in force but the effects of it cannot be seen until a claim arises. With a pie, you can touch, feel and taste it. The packaging on the pie will ask you to return the packaging and contents if you are not satisfied with it. The 'packaging' on the insurance will ask you to read through the documents carefully and it states the 14 day cooling off period. You will still be charged for cancellation within the 14 days if you simply 'didn't like' the policy because the policy was still in force and would have dealt with a claim if it arose with the 14 days - you are not physically using the policy but you are taking advantage of the protection which is part of the policy. My point being, is that you wouldn't walk into Sainsburys and say "I bought a pie from here yesterday, ate it all, and didn't like it.... give me my money back". If you didn't like it, it's reasonable to presume that you wouldn't have eaten the contents in it's entirety (or taken it to it's maximum usability).

Insurance companies could learn a lot about customer services from companies like that. It's not an obligation or a legal requirement. It's just how Sainsburys and other successful supermarkets treat their customers. I've got something from Asda's "Smart Price" range in my hand and the message on the side of everything in that range is "We'll refund or replace if you are not 100% happy" - and they honour that promise. It seems that, in your world of Astons and Bentleys Mr V, you did not know about how normal supermarkets work.

?? The OP was not saying he is unhappy with the policy, it's regarding a claim!

Insurance policies are much easier to divide than a pie in a box. When there's a valid policy, there's a risk to cover. When there isn't a valid policy, there's no risk.

Shouldn't that be "When there's a risk to cover, there's a valid policy. When there isn't a risk to cover, there is no valid policy"?

The insurance company will not pay out for any claim made after the policy ends so Tim should get a refund for that time.

Again. When the claim arises, the product (the policy) has come to it's maximum usability. An insurance policy is there to indemnify the insured against financial loss should a claim arise throughout the policy period; typically 12 months. The premium paid reflects the risk being posed throughout the 12 months. If the policy is not automatically terminated by the insurer after the claim has been settled, then it accepts to carry the risk of a further loss but the maximum usability has already been reached.

Maxsteam, from your posts, it highlights that you have very little business acumen and that your knowledge of products, services and the UK economy is not desireable. Ensure that you don't run for any elections anytime soon!

At least I know how Sainsburys deal with returns!

"The maximum usability of an insurance policy is where a claim arises and is paid out" - No. If the claim is made after 9 months, there is still another 3 months during which time another claim could be made if the policy is still in force. An insurance policy has been fully "used" after the term of the policy has been completed i.e. after 12 months of a 12 month policy.

maxsteam:

At least I know how Sainsburys deal with returns!

"The maximum usability of an insurance policy is where a claim arises and is paid out" - No. If the claim is made after 9 months, there is still another 3 months during which time another claim could be made if the policy is still in force. An insurance policy has been fully "used" after the term of the policy has been completed i.e. after 12 months of a 12 month policy.

Okay, you are not listening to what is being said, and you don't understand it either. It has been explained to you extensively, but your lack of reasoning is prohibiting how you absorb the information.

I know how Sainsburys deal with returns too! I've already stated that I'm not disputing their returns procedure!

I've never known anybody to have such little common sense and to be so unreasonable and sulk about being hard done by the big bad insurance wolf. Are you an adult?

I'm pleased that today you know Sainsburys return policy but you didn't know it on Monday. This at least shows that you have started to read some posts. Well done :)

"If you open sealed packaging containing a pie, accepting that you can see the pie through the packaging but not yet taste the ingredients, and you only eat three quarters of it, do you take it back" to Sainsbury's requesting a proportionate refund for the quarter remaining! No, you throw the unused remainder away"

Maxsteam. YOU'RE not reading the post!! I asked if you would take it back, I didn't state that Sainsburys wouldn't exchange or refund!! A pie and insurance are two entirely different products, although they both have a maximum useage which is why I used that as an example and why I was merely asking what you would do, not Sainsburys!!

Your posts are idiotic lol!! Carry on though, I could do with the amusement after the day I've had mate lol!! :)

Ahhh, in that case, you are still wrong because if there was anything serious wrong with the pie, I would take it back, but not for a partial refund.

maxsteam:Ahhh, in that case, you are still wrong because if there was anything serious wrong with the pie, I would take it back, but not for a partial refund.

You've hit the nail right on the head there my son! "if there was anything seriously wrong with the pie". We then delve into another area... which I'm passed caring about now anyway LOL!