Have you had car insurance cancelled, refused or voided?

Why has my car insurance been cancelled?

Your car insurance could be cancelled, refused or voided if your provider thinks you’ve broken the rules.

There are many reasons this might happen, but it’s often for:

• Non-payment

• Non-disclosure

• Or fraud.

Not paying for your policy

If you pay for your car insurance in monthly instalments and haven’t been paying the premiums, your provider has a right to cancel your policy.

However, it must give you sufficient warning and an opportunity to catch up on your payments.

If you don’t think you can make a payment, get in touch with your provider as soon as possible. It may be able to arrange a payment plan.

If you’ve missed a payment by accident – you’ve changed bank accounts, for example – let your insurance provider know and make the payment as soon as possible.

Continued non-payment could harm your credit score, as well as leading to your policy being cancelled.

Not telling your insurance provider important information

Non-disclosure is omitting something from your insurance application that a provider needs to know. This could be as simple as forgetting to declare a claim you made a few years ago.

It’s important to tell your insurance provider about any previous claims, incidents and driving convictions. If it later finds out you’ve lied or failed to reveal crucial information, it'll likely void your policy. This means any subsequent claims you make could be rejected.

You should also update your provider about changes that happen during your policy term. For example, if you change jobs, move house or modify your car.

Committing insurance fraud

Fraud, whether intentional or by mistake, is reason enough for your insurance provider to cancel your policy. But it’s also illegal and could result in fines or prosecution.

Instances of fraud might include:

• Fronting: where an experienced driver falsely claims to be a car’s main driver. This sometimes happens when young drivers try to find ways to cut the cost of their insurance.

• Flash-for-cash and crash-for-cash scams: when a driver flashes their lights to tell another driver they’re safe to pull out, then deliberately crashes into them.

• Vehicle dumping: pretending your car has been stolen so you can claim money for a new one.

Other types of fraud may involve deception for financial gain – in other words, trying to reduce the cost of a premium. Examples include:

• Falsely claiming that your car is kept in a garage overnight

• Using someone else’s address to register and insure your car.

What should I do if my car insurance has been cancelled?

If your insurance provider tells you it intends to cancel your policy, get in touch as soon as possible.

Cancelled insurance is a black mark against your name, so find out if there’s anything you can do to resolve the situation.

It may be that an error can be easily fixed, or a new payment plan agreed upon. You can also appeal against the decision if you disagree with it.

If the problem can’t be resolved and your policy is cancelled, you’ll need to look for a new policy straight away to make sure you’re still covered. Whatever you do, don’t drive your car without insurance, as this is illegal.

What can I do to avoid my insurance being cancelled?

To reduce the risk of a provider cancelling your insurance, here are some things you can do:

• Report all incidents, including fire, theft or water damage, even if you’re not making a claim

• Declare any penalty points or motor-related convictions

• Tell your insurance provider if you change career or job title, as this information is used to calculate your insurance premium

• Report any changes in address or circumstances, such as a significant increase to your annual mileage

• Fit a dash cam to your car – these can provide useful evidence in an accident caused by fraudsters

• Make all payments on your policy on time – set up a direct debit if necessary.

Do insurance companies check if you had insurance cancelled?

When you’re applying for car insurance, you’ll be asked if you’ve had a policy cancelled in the past.

Some providers will only want to know about your recent driving history, for example the past five years. But others might ask for longer.

Insurance providers also have access to the central insurance database known as CUE (the Claims and Underwriting Exchange). This can provide records of past incidents and validate your claims history.

If you’re dishonest, your policy may be invalidated when you come to claim.

If my car insurance is cancelled, will it affect my ability to find new insurance?

You’ll have to declare a cancelled policy to any new insurance provider.

A cancelled policy is a red flag to insurance providers and you may struggle to find a mainstream provider to cover you. You may also end up paying a lot more for your car insurance.

If you’re finding it hard to get insurance, look for a specialist broker who can help you find car insurance for cancelled policies.

How long does a cancelled insurance policy stay on record?

A cancelled insurance policy can stay on your record indefinitely.

When you apply for a new policy, even years down the line, an insurance provider might ask if you’ve ever had a policy cancelled. If that’s the case, you’ll have to answer honestly.