Insurance premium owing after a write off...

**rosie631** · 15th July 2009, 15:45

Does anyone know how this works? If you pay insurance for 12 months and your bike is written off in the 9th month do you get refunded 3 months premiums. I thought you did because if bike written off you are effectively paying for another 3 months when there is nothing to insure.
In my case I pay monthly. My insurance year gos from 3rd october 2008 to 3rd october 2009. So I'm 9 months through the insurance year. Payments are all up to date. Bike was written off on 3rd July. Insurance company now say I owe them 220 dollars for premiums for July, August, September. Is this right?

Sorry, I know you're probably all sick of my insurance threads but trust me not as sick as I am of the whole bloody business.
Thanks for any opinions and advise, Rosie

**James Deuce** · 15th July 2009, 15:48

Yep. Ugly isn't it?

Give these folks a call and see where you stand. http://www.iombudsman.org.nz/

Always read the fine print.

**Devil** · 15th July 2009, 15:48

It is correct that they expect the entire premium. It's in your contract that the entire premium must be paid in the event of a claim. Thats what you're paying them for.

This is the norm.

**rosie631** · 15th July 2009, 15:54

Really? I stand corrected then. For some reason I thought I remembered getting a refund once but must have dreamt it. Thanks for info.
What about registration? If you are registered for 12 months and bike written off after 6 do you get the other 6months refunded, or can you transfer it to the new bike, or just tough shit??

**Devil** · 15th July 2009, 15:56

Originally Posted by rosie631

Really? I stand corrected then. For some reason I thought I remembered getting a refund once but must have dreamt it. Thanks for info.
What about registration? If you are registered for 12 months and bike written off after 6 do you get the other 6months refunded, or can you transfer it to the new bike, or just tough shit??

If you cancel insurance during your term, expect a refund for the remainder of the period. I *think* you can get the same thing with rego.

**Squiggles** · 15th July 2009, 15:58

Originally Posted by rosie631

If you are registered for 12 months and bike written off after 6 do you get the other 6months refunded, or can you transfer it to the new bike, or just tough shit??

Insurance company usually collects on this when they deregister the vehicle...

**rosie631** · 15th July 2009, 16:00

Originally Posted by Squiggles

Insurance company usually collects on this when they deregister the vehicle...

And then they pocket it?? Price of bike reg nowdays it's not peanuts

**YellowDog** · 15th July 2009, 16:02

Originally Posted by rosie631

Really? I stand corrected then. For some reason I thought I remembered getting a refund once but must have dreamt it. Thanks for info.
What about registration? If you are registered for 12 months and bike written off after 6 do you get the other 6months refunded, or can you transfer it to the new bike, or just tough shit??

My experience is as Rosie says. Upon write-off the insurance is cancelled and you get a refund, or stop monthly payments.

**rosie631** · 15th July 2009, 16:04

Originally Posted by YellowDog

My experience is as Rosie says. Upon write-off the insurance is cancelled and you get a refund, or stop monthly payments.

What company are you with? They stopped deducting my premiums after the claim so I thought that was the reason. But then they hit me with owing them 3 months.

**Drew** · 15th July 2009, 16:06

Holy crap! That's mental.

Would have thought they would take it out of the cheque, rather than bill you later though.

**davebullet** · 15th July 2009, 16:31

Your premium covers you for a term which is usually 1 year and is usually calculated on an annual basis. The instalment payment is a convenience option for the customer.

If you didn't claim insurance for the write-off then yes you could get a refund, but typically when you make a claim, 2 or 3 - you only pay the one premium for 1 years cover.

**yachtie10** · 15th July 2009, 16:32

My understanding is
All premiums are yearly, They can let you pay on another frequency but you still owe the years premium.
If the policy is cancelled after a claim then a refund would be normal
If the policy continues to cover new or old bike then you would keep paying

But it depends on your policy

**YellowDog** · 15th July 2009, 16:34

Hey Rosie, I haven't had a claim in many years and also not ever in NZ.

But the principal should still be the same. It could be because you had it on an HP in which case the payments need to complete before a refund can be considered.

As has already been said, the policy document will cover this. I would suggest you call them and ask them to point you to the relevant clause in their policy document.

IME Write-off = Same as Cancellation = Refund due.

**Devil** · 15th July 2009, 16:42

If you make the claim (ie, your fault) then expect the premium to be forfeited.
Remember you are paying these people to carry the risk. If you make a claim, they are paying out on that risk. They have held up their end of the bargain. Full premium to be paid.

If you claim and it was another parties fault, your insurance will just continue on after the repair, or in the case of the write off and no replacement bike insured, then you should expect a refund.

It's all about who is carrying the risk.