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Car insurance cancelled, voided or refused

My car insurance has been cancelled: What next?

Mehdi Punjwani
Written by  Mehdi Punjwani
5 min read
Updated: 19 Feb 2024

Having your car insurance policy cancelled, voided or refused is something you definitely want to avoid - it can cause stress, hassle and problems getting cover in future. Here’s why it could happen, how you can prevent it from happening in the future, and how you can get cover if your policy is cancelled.

Why has my car insurance been cancelled? 

Unless you’ve cancelled it yourself, your car insurance provider is only likely to cancel your cover if it suspects you’ve broken laws or rules regarding your policy. This usually amounts to either: 

If you haven’t paid your premiums 

Many people pay monthly car insurance premiums rather than an annual lump sum. If you stop paying then your insurer has the right to void your cover, but they’re required to warn you first and let you catch up on what you owe.  

If you’re having financial issues you should contact your insurer as soon as possible, as they may be able to help you work out a payment plan. Likewise, if you miss a payment by accident you should aim to resolve this as soon as you can. Failure to pay can lead to cancelled cover, and it can also damage your credit score. 

If you’ve lied or withheld information from your insurer 

When you take out cover with an insurance provider, you’re required to give them a full and honest account of your driving and car insurance history. You should always be honest with your insurer, as if you need to claim and they find you’ve lied or withheld information they’ll likely void your policy. 

Insurance providers have access to the Claims and Underwriting Exchange database, on which they can check a driver’s history of claims and incidents - so they’ll be able to verify your information. Trying to reduce your premiums by lying to your insurer isn’t worth the risk and potential cost of ending up without cover when you need it. 

If you’ve committed insurance fraud 

Committing any type of car insurance fraud, such as fronting, lying about a stolen vehicle, or deliberately causing an accident, will generally lead to your insurer voiding your policy. Not only this, but you may also end up on a database for those who’ve committed fraud and had their insurance cancelled, which can make getting cover in the future more difficult.  

If you drive poorly with telematics installed  

Telematics insurance allows your provider to monitor certain aspects of your driving, and showing good habits can lead to reduced premiums in the future. However, the reverse is also true - if you drive irresponsibly you’ll likely see a rise in premiums, but if you make serious or frequent poor decisions it can lead to your policy being cancelled. 

Can I appeal to my car insurance provider? 

If you believe your insurance was cancelled unfairly, or you weren’t to blame for the incident that resulted in the cancellation, your first port of call should be your insurer - get in touch and give your side. If they won’t budge and you want to take it further, you should contact the Financial Ombudsman

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Will insurance companies check if my car insurance has been cancelled? 

Yes, car insurance companies are likely to check on your entire driving and claims history - so you should be honest when giving information to your insurer or potential insurer.  

Do I have to declare if I was previously refused for car insurance? 

Yes, while insurers might not always ask this question, you must declare if you’ve ever been refused car insurance if you are asked. Otherwise, you risk being refused again, or having your policy cancelled if you need to claim. 

Will I be able to take out car insurance if my policy was cancelled, voided or refused? 

You will still be able to take out cover - in fact, you must if you want to keep using your car. However, it’s likely that you’ll struggle to find an insurer that will cover you as some refuse to provide insurance to those who’ve had previous cancellations or refusals.  

You might have to look for specialist cover, and in any case you’re likely to pay more in premiums. 

How long will a cancelled insurance policy stay on my record? 

If you’ve had an insurance policy cancelled, voided or refused, it’ll be on your record permanently - which means you’ll always need to be upfront about it when asked. 

Will I be affected as a named driver on a cancelled car insurance policy? 

If you’re a named driver on a car insurance policy that is cancelled or voided, this shouldn’t affect you. If you’re asked whether you ever had a policy cancelled, as it wasn’t your policy but someone else’s, you’ll still be able to answer no. 

How do I prevent my insurance being cancelled? 

To avoid insurers cancelling, voiding or refusing your car insurance policy, bear the following in mind: 

  • Take extra care with paperwork and forms to ensure all the information is honest and correct 

  • Report all incidents to your insurer during the term of your coverage, even if you don’t plan on making a claim - it helps when they have a complete record 

  • Keep your insurer updated as to your circumstances, including changes in address, career, or the amount of driving you do - and definitely if you change your car 

  • Set up a direct debit or pay your insurance premiums annually so you know they’re taken care of 

  • Install a dashcam as they’re a useful source of evidence if you ever need to prove yourself 

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