Hi both, Many thanks for your help and advice. I'll look to buy a car within the next two years, so don't think the NCD issue will be an issue with the next policy.

Hi there, My R reg car was recently scrapped after suffering a mechanical fault which was not cost effective to repair. After recovering my outstanding tax, I made enquiries with my insurer to cancel the policy. However, I was informed that an option would be to continue the existing policy with a refund on my next car insurance policy - provided I took out a new policy on a new vehicle with the same insurer in the 'near future'. Note that my insurance policy was valid until May. I suggested the insurer send me additional information and higlighted that I still might wish to cancel the policy as the insurer could provide no guarantees that the premium quoted for an insurance policy with a new vehicle would be lower than other insurers' premiums. Therefore the saving might prove counter productive in the long run. My insurer also mentioned that should I cancel my insurance and fail to purchase a new car in the near future, this would invalidate my no claims discount protection which has built up over six years. The insurer took my details and 'promised' to email me the additional information. However, I've yet to receive a response. With the incomplete information and cancellation fee of £80 and possibility of my NCD policy being reset due to inactivity, i'm unsure which action to take. If anyone could please offer general advice or advise on the period of driver activity required to reset the no claims discount protection, I'd be grateful. I'm yet to purchase a new car, still haven't cancelled the existing policy, which runs until May and am still waiting for the insurer to provide additional information two week's later. Hope you can help. Many thanks...