Why does he have to pay insurance when theres nothing to cover

A question about : Why does he have to pay insurance when theres nothing to cover

My husband could no longer afford to pay for his taxi insurance which was Ј5000 over the year when they informed us that they are adding over Ј900 to the total.At the same time he stopped work and put his car for sale so he could pay off most of the car loan.

The insurance broker and insurance company have both written to us saying that we owe them Ј4000. Can they do that? The insurance started in November 2014.

We were expecting a refund for part of the deposit and instead they are asking us for more money.

TIA

Best answers:

• What does the paperwork say, specifically about cancellations?
• Probably because he took out and agreed to a 12 month policy.
• Ill have to check that
• Please do.
• Taxi insurance may be different but "generally", Insurance is due in full for 12 Months at the start of the policy.
  Paying Monthly is not the same as having monthly insurance.
  It only takes about 2/3 months for any refund to wittle down to about 20/30% of the total paid up front.
  That's Insurance companies for you.
• The monthly payments allow you to spread the cost of an annual policy. Normally when you take out the insurance you are agreeing a contract for the full 12 months, I don't think there are many companies that provide monthly insurance. Selling your car midway through your 12 month policy does not excuse you from the contract that you agreed to.
  Why did the insurance company add on an additional Ј900 mid way through the policy year?
• Any claims or incidents since taking the policy out?