When your car is written off and you receive a total loss settlement, you might be wondering what happens next with your insurance.
Do I need to start a new policy for my replacement vehicle?
No, you don’t need to buy a brand new policy. You can update your current policy with your replacement car details.
However, what you pay next depends on how you pay for your policy:
If you pay annually:
You’ve already paid your full premium.
You can transfer your policy to the new vehicle without paying again.
If the new car costs more to insure, you’ll only pay the difference in premium.
If you pay monthly:
The rest of your annual premium (called the Outstanding Premium or OSP) is usually taken from your settlement amount.
Once settled, you can change your vehicle without restarting your plan.
Again, you’ll only pay extra if your new car increases the premium.
Can I cancel my policy instead?
Yes, you can. But if we’ve already paid out your claim, you’re still responsible for the full annual premium — even if you cancel early.
What if I haven’t chosen a new car yet?
You have up to 30 days from the date of your total loss confirmation to update your vehicle details on your policy. If you haven’t made a change by then, your policy may be cancelled.
Summary
Situation | Do I pay again? | Notes |
Annual payer | No | Unless new car costs more to insure |
Monthly payer | No, OSP is taken from claim | Only pay if new premium is higher |
Cancelling policy | Yes | You still owe the full annual premium |
If you're unsure, our support team is here to help you with the next steps!