Have you had car insurance refused, cancelled or voided?

Having your car insurance policy voided, cancelled or refused by an insurance provider is not a nice feeling – and there are many reasons why this might happen, including human error. But by telling the truth and making a commitment to safer driving, there are still plenty of insurance policies available.

Having your car insurance policy voided, cancelled or refused by an insurance provider is not a nice feeling – and there are many reasons why this might happen, including human error. But by telling the truth and making a commitment to safer driving, there are still plenty of insurance policies available.

Julie Daniels
Insurance expert
4
minute read
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Last Updated 25 JANUARY 2022

Why has my insurance provider cancelled my policy?

There are many reasons why an insurance provider may decide to cancel, refuse or void your car insurance policy. Usually it’s for: 

  • non-payment
  • non-disclosure
  • or fraud 

Essentially, they’ll cancel your policy if they think you’ve broken the rules - and this won’t look good to other insurance providers. 

If your provider tells you they’re planning on cancelling your policy, contact them as soon as possible. Don’t ignore the problem. It will be easier to get insurance in the future if you don’t have a cancellation on your record.

 

What can I do if I’m going to miss a payment?

If you chose to pay for your car insurance in monthly instalments and you’ve not been paying the premiums, your provider has a right to cancel your policy, as long as they give you sufficient warning - this can give you the opportunity to catch up on your payments. If you don’t think you can meet an upcoming payment, contact your insurance provider as soon as possible to see if you can come to a mutually agreeable arrangement.

If you’ve missed a payment by accident, for example by changing bank accounts, or something happened in your life that prevented you from making a payment, let your insurance provider know and make the payment as soon as possible.

What does non-disclosure mean?

Non-disclosure could be due to miscommunication – and may be as simple as forgetting to declare a claim you made a couple of years ago. 

Insurance providers can validate policyholders’ claims history and check records of reported incidents using the central insurance database known as CUE. So, if you’ve genuinely forgotten to mention something that’s later revealed, your policy can be cancelled for failing to declare relevant information. This can also apply to changes that happen during the time your policy runs for, so you’ll need to update your insurance provider if, for example, you change jobs, move home or modify your car

Insurance is all about risk, and prices are based on your individual circumstances. If you’re considered high risk,  your premiums will reflect this. It’s imperative to tell your insurance provider about any previous claims and incidents. You’ll usually be asked about driving convictions and claims, so answer honestly – it pays to be upfront in the long run. 

To avoid future problems, make sure you keep a record of the information you’ll need to give an insurance provider every time, so you won’t miss out anything by accident.

What might count as fraud with an insurance provider?

  • Fronting is where a more experienced driver says they’re the main driver on a policy, but in reality the main driver is someone else, perhaps a younger driver, hoping to save money on the policy.
  • Flash for cash and crash for cash scams often result from a driver flashing his lights to signal to other drivers they’re safe to pull out at a junction, then crashing into them. Or they may slam on the brakes without warning and for no reason, forcing the car behind to crash into them.
  • Vehicle dumping – pretending your car has been stolen – occurs when someone disposes of or burns a car, then claims it’s been stolen.

Other types of fraud may involve deception for financial gain – trying to reduce the cost of a premium. These could include: 

  • Saying your car is kept overnight in a garage when it’s not.
  • Using someone else’s address to register and insure your car.

While these are quite serious criminal behaviours, there are other reasons why you could absentmindedly leave yourself open to an accusation of fraud. So always consider any changes to your circumstances.

What can I do to safeguard against potential fraud?

  • Report incidents, such as fire, theft or water damage, even if you’re not making a claim.
  • Declare any penalty points added to your licence or any motor-related convictions.
  • Tell your insurance provider if you change career or job title, as this information is used to calculate premiums.
  • Report any changes in address or circumstances.
  • Report any new behaviours, like regular changes to mileage.
  • f you want to add anyone to your policy, tell your insurance provider.

Fit a dash cam as these can provide useful evidence for your version of events in an accident created by fraudsters.

Does a cancelled policy affect me finding insurance in the future?

Insurance cancellation is something you’ll have to declare to every new insurance provider. A cancelled policy serves as a red flag and you may struggle to find a mainstream insurance provider to cover you. Alternatively, you may end up paying a lot more for your policy. 

The ideal way to avoid cancellation is to be as truthful as possible with your insurance provider. While a criminal conviction can be spent after a length of time, insurance claims and cancellations can’t. So, a cancelled policy will always have to be declared.

What can I do if an insurance provider refuses to insure me? 

It’s up to each provider to decide which customers they want to insure. Some prefer to insure safer drivers and decline those with recent claims, particular jobs or high-performance cars, while others specialise in younger drivers, convicted drivers or special vehicles. If you live in an area with high levels of vehicle theft, some providers might not want to insure you. 

This is where comparison sites can help – we’ll search for providers based on the information you provide, making it more likely that you’ll find insurance.

Search for a policy

In the end, honesty is always the best policy with car insurance. And when it comes to renewing and finding a car insurance policy, we can search a wide range of insurance providers, both large and specialist, so you have a good chance of securing competitive car insurance that takes account of your past. 

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