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.

Daniel Hutson From the Motor team
4
minute read
posted

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

If you’ve not been paying your premiums, your provider has a right to cancel your policy, as long as they give you sufficient warning. If you don’t think you can meet an upcoming payment, contact your insurance provider to come to a mutually agreeable arrangement.

Cause for cancellation

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 which is revealed, your policy can be cancelled for failing to declare relevant information.

Insurance is all about risk, and prices are based on your individual circumstances. So, if you’re a high-risk candidate who’s made claims in the past, your premiums are going to 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.

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, and they’re 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.
  • Pretending your car has been stolen – vehicle dumping occurs when someone disposes of or burns a car, then claims it’s been stolen.

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
  • If you want to add anyone to your policy, tell your insurance provider
  • Fit a dash cam – according to recent research from Finder.com 69% of people who had an accident think having a dash cam would’ve been useful evidence for their version of events. An insurance provider may like proactive measures like this.
How does a cancellation affect future policies?

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

Insurance cancellation is something you’ll have to declare with 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.

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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