I’m lucky to be alive after ‘freak car accident’ – now I’m being chased for £3k due to detail hidden in insurance docs

WHEN Yasmin Jose crashed her car on the way to work, the last thing she was thinking about was how much it would cost.

The 18-year-old air hostess was left shaken and feeling lucky to be alive after her tyre blew out on her drive to Gatwick Airport, causing her to crash into the central barriers on the A23.

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But months down the line, the financial implications of the incident are lingering even after Yasmin’s insurer stepped in.

While Yasmin, from West Sussex, came out of her accident unscathed, her 2009 Vauxhall Corsa was written off as it was too badly damaged to repair.

Yasmin immediately made a claim on her insurance policy with 1st Central, which she paid around £450 a month for.

But much to her horror, the insurer said it would only pay out £570 after various excesses were taken off.

An excess is an amount you agree to pay or forfeit in the event you make an insurance claim.

Opting to pay a higher excess in the event of a claim can bring down your monthly insurance premiums, while a low excess can mean you have to pay higher premiums.

But that wasn’t even the worst of the news.

Yasmin had originally been told that if her claim was deemed to be a no-fault claim, which is where a third-party is responsible for the damage, then it would be closed and she would not be liable.

She expected her case would be considered a no-fault claim, as the police had investigated the crash and ruled it a “freak accident” that she could not have prevented.

But as there was no third-party involved, this wasn’t the case.

After months of back and forth, 1st Central said she would have to fork out £3,000 for a car she now didn’t own to clear her outstanding monthly premiums for the rest of the year.

“I’m now paying £450 a month for a car I don’t have, which is making it even more difficult for me to save for a new car,” she said.

Yasmin’s mum Felicity told The Sun that while the small print of the policy does state that “you may need to pay the remaining premium”, they were not made aware of this at any point when taking the policy out or at any point during the claim process.

“I could understand if the amount paid out due to her claim was a large amount as the company would have to recoup their loss.

“However, as it was a small amount paid out to her, she has more than covered this in premiums paid since November when she bought the car,” she said.

Yasmin now has to rely on lifts from her parents to her cabin crew job at Gatwick.

A spokesperson for 1st Central explained: “If a customer has chosen to pay for the policy in monthly instalments and makes a claim during that period, they remain liable for any remaining premium as it’s based on an annual agreement, which is standard across the industry.

“The policy also remains open for customers to add a replacement vehicle, which many choose to do.”

It added that while a small payout may have been covered by premiums, it is not just the cost of the car that insurers are liable for when there is an accident.

“It’s important to note that car insurance covers not only the direct costs of a claim, such as vehicle payout on a write-off, but also third-party claims such as costs for damage or personal injury,” the spokesperson explained.

When The Sun intervened in Yasmin’s case, 1st Central admitted it had not been clear enough in its communications with her and apologised for incorrectly advising her that her claim was closed, giving her the impression she didn’t owe any more money.

The insurer said it is reviewing its communication with customers to ensure they are aware of this going forward.

Can insurers ask you to pay the rest of your premiums?

When you take out a car insurance policy, you can either choose to pay for the whole year up front or to pay in monthly instalments – which Yasmin had chosen to do.

If you pay for the year up front and then make a claim, you are not refunded any of that money as your contract was for the whole year.

So, if you make monthly payments, you must pay all of the instalments even if you make a claim before the end of the year.

Motoring disputes expert Scott Dixon explained: “When you pay car insurance monthly, you are entering into a 12-month loan agreement with your insurer for a one-year insurance policy. 

“Whenever a claim is made mid-term and no other party is involved, you will be liable to pay for the full year’s premium as you have entered into a one-year contract for insurance cover, excluding no-fault claims.

“No fault claims are usually upheld when your car has been damaged by a third party.”

Unfortunately, making claim can also increase your future insurance premiums for new policies, even where it isn’t your fault.

“This is because insurance company algorithms cite that you are more likely to make a claim even if you are not at fault,” Mr Dixon said.

Do I always have to pay the remaining premiums?

Unfortunately, most car insurance policies state you may be liable to pay the remaining premiums, even if you write off your car – so it’s important to be aware of this before you take out a policy.

While it may seem like you’ve paid enough premiums to cover the cost of your damage, insurers also have to pay out for damage to other vehicles or public property, such as motorway barriers.

The only time you may not have to pay the outstanding premiums is if the accident is closed as a no-fault claim, which means someone else was wholly responsible for the incident.

In that case, the third party’s insurer would be liable for all the costs.

While you may have to pay your remaining premiums, most insurers will let you transfer a new car onto your policy, so you won’t be paying for nothing.

Mr Dixon explained that you may be able to recoup any of your losses if you have an accident due to a pothole incident.

What if I didn’t know this was in my policy?

It’s always a good idea to read through insurance policies very carefully before handing over any money.

Insurance policies are legally binding agreements and not paying can have a knock-on effect on you financially.

But Mr Dickson said key terms do need to be “bold, prominent, fair and transparent” and “cannot be buried in the small print of a contract”.

“If these Key Terms were buried in the small print, you could argue they are not binding and cite ‘breach of contract’ under the Consumer Rights Act 2015,” he said.

However, he warned that this can go both ways – as if the contract is voided, the insurer could agree and refuse to pay out your claim.

“Always check the T & Cs carefully including the small print when you take out an insurance policy, as insurers often rely on the small print to void all claims,” he said.

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This post first appeared on thesun.co.uk