Car written off, policy states total loss = cancellation
Car written off, policy states total loss = cancellation
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KGDLOTUS

Original Poster:

1 posts

41 months

Thursday 25th May 2023
quotequote all
Hi all,

Had my car written off last month as a total loss, and received my pay-out into the bank.

I have searched the forums and the web but the scenarios are always messy, whereas mine is straightforward, so want to seek clarification.

-

The insurance company has said that as the claim is a total loss they are cancelling my policy. They did this on the day after I had notified them of the accident (They were notified within two hours of it happening).

Now, is this standard procedure as it is stated in their policy handbook, or do I now have to declare that I have had a policy cancelled when I look for new insurance?


P700DEE

1,198 posts

260 months

Thursday 25th May 2023
quotequote all
Standard policy for a right off. They will re-insure you on your replacement car with a new policy and relevant no claims.

98elise

32,704 posts

191 months

Thursday 25th May 2023
quotequote all
KGDLOTUS said:
Hi all,

Had my car written off last month as a total loss, and received my pay-out into the bank.

I have searched the forums and the web but the scenarios are always messy, whereas mine is straightforward, so want to seek clarification.

-

The insurance company has said that as the claim is a total loss they are cancelling my policy. They did this on the day after I had notified them of the accident (They were notified within two hours of it happening).

Now, is this standard procedure as it is stated in their policy handbook, or do I now have to declare that I have had a policy cancelled when I look for new insurance?
You don't need to declare it as having insurance cancelled. It's just how your policy works when the car written off, so it's a perfectly legitimate end to the policy. It's no different to say selling your car and cancelling the policy.

When they ask about cancelled policies they mean an abnormal end like finding out you've provided false information so they no longer want to insure you.

CanAm

14,053 posts

302 months

Thursday 25th May 2023
quotequote all
No need to reveal a cancellation. The policy is terminated because the contract is completed.