Hi there. I was just wondering has anyone else been with an insurance company where they have had an accident (crashing into the back of someone to be exact) and the insurance company not paying out the full insured amount! I in a 'at fault' accident. I was insured for $3000, i paid my $400 excess and in the end i was only paid out $2500 because i needed to pay my insurance on the non-mobile car (written off) for the remainder of the year September-December. has this happened to anyone else! I was thinking i may need to ask the commerce commision if this was right! I just dont get it in total i would have paid about $800 to them but what i dont get is paying up insurance for a car that isnt mobile for the rest of the year. Isnt that like paying the AA for nothing! Anyone!
raymond00001,
Sep 27, 2:36am
They are right. Your insurance contract is for a one year term. While some may choose to pay monthly the full premium is still due. Same happened to a mate who wrapped his bike around a powerpole at 140km/h. The payout is always less your excess amount.
thewomble1,
Sep 27, 3:12am
When the insurance company wrote off my car they paid out and my policy was cancelled. I pay monthly and I was up to date with the monthly payment and I did not have to pay any more monthly payments.
mrfxit,
Sep 27, 4:30am
Yep same here, Payout means the end of the contract for THAT vehicle. Can't do another claim with an existing contract on a non existent vehicle
pico42,
Sep 27, 5:02am
Yep, the insurance contract is year to year and the premium is the premium, no matter whether you pay it weekly or monthly. A crash that destroys the car ends that insurance and all parts of the contract need to be settled, ie payout of the vehicle and payment of the premium.
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