My car is a write off, insurance company want to cancel policy before payout. Where do I stand in getting pay out and future insurance?
My car engine caught fire three weeks ago. I have fully comp insurance. We have agreed on pay out and I have sent all documents back but am still waiting for the cheque. They have now asked for my insurance certificate and for me to sign a letter saying I agree to the cancellation of the policy.
Do I sign this now or wait until I reieeve my cheque?
Also where do I stand when looking for insurance for a new car, will I be penalised because they insist I agree to cancel?
Do I sign this now or wait until I reieeve my cheque?
Also where do I stand when looking for insurance for a new car, will I be penalised because they insist I agree to cancel?
Asked on 2 November 2012 by doobre66
![](http://images.honestjohn.co.uk/imagecache/file/pad/120x120/media/16477727/537450_458533677529584_1473549666_n.jpg)
In certain circumstances a policy is deemed terminated when a full payout is made. You don;t need this insurance any more because you have no car. Yes you will have to start again and yes there will be a penalty for the claim.
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