Ought to an insurer refund the unused portion of my insurance coverage if my car is written off and I’m paid out in full?
The above query was requested of me by an insured who had solely renewed their motorcar insurance coverage coverage 2 weeks earlier than their automobile was severely broken whereas parked. The insurer agreed to jot down off the car and provided a cost that the Insured feels is honest and affordable.
It was annoying to the insured that they’d solely paid their insurance coverage 2 weeks earlier than and hoped to get the majority of it again.
The brief reply to the query is that no, the insurer doesn’t refund the premium.
In easiest phrases, insurance coverage is a contact and the phrases of which state in phrases like: In consideration of you paying the premium, we are going to indemnify you for losses to your motorcar.
With the cost of the agreed market worth of the car the insurer has fulfilled their a part of the contract and in flip are entitled to obtain the annual premium which they charged to supply that degree of safety.
If it had been a month-by-month cost sort association, the insurer would have deducted the steadiness of the unpaid premium from the settlement.
It’s nice that the Insured had the safety of their insurance coverage coverage because the declare was settled expeditiously and pretty and this permits the Insured to maneuver ahead after the unlucky occasion. It saves them from having to hunt a restoration from the third get together who might or might not have their very own insurance coverage.
Murphy’s Regulation is alive and properly and it’s only a disgrace for the Insured on this case that the collision didn’t happen 2 or 3 weeks earlier however none of us know when “It” goes to occur.
