Car insurance cancelled, voided or refused

Key takeaways

• Car insurance can be canceled if you fail to pay premiums, lie or withhold information, commit insurance fraud, or drive poorly with telematics installed

• A cancelled policy stays on your record permanently, making it harder and more expensive to find new cover

• To avoid cancellation, ensure accurate and honest information, report all incidents, keep your insurer updated on any changes, and maintain consistent payment of premiums

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 could be because:

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.

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 (CUE) 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.

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. 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.

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. If you make serious or frequent poor decisions it can lead to your policy being cancelled.

My car insurance has been cancelled but it’s not my fault, can I appeal?

Yes, if you believe your insurance was cancelled unfairly, or you weren’t to blame for the incident that resulted in the cancellation, you should get in touch with your insurer and give your side. If they won’t reinstate your insurance you should follow their complaints process. If you’re still unhappy with their response you can contact the Financial Ombudsman.

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

Yes, car insurance companies are likely to check your 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, 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?

Yes, you will still be able to take out cover (and 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 you’re likely to pay higher premiums.

How long does 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?

No, 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 cover, even if you don’t plan on making a claim - it helps when they have a complete record

• Keep your insurer updated about 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 dash cam as they’re a useful source of evidence if you ever need to prove yourself

Looking for car insurance?

Comparing car insurance quotes with MoneySuperMarket is a quick and easy way to find affordable cover. Just tell us about yourself, your driving history, and the car you want to insure, and we’ll search the market for quotes that match your requirements.

You’ll be able to compare policies by the overall cost of cover, the type of policy, and the excess you’d need to pay to make a claim. Once you’ve found the deal you want, just click through to the provider to finalise your purchase.