Having your car insurance cancelled, voided, or refused is an experience nobody wants to go through. But if it happens, the best thing to do is be honest when looking for another policy.
We're here to walk you through what to do if your insurance gets cancelled, and how to avoid it happening in future.
Why was my car insurance cancelled?
Your provider should let you know that they're planning to cancel your policy. It's a good idea to contact your provider straight away, as ignoring the problem can make the process harder. And it may be easier to get insurance in the future if you avoid getting a cancellation on your record.
There are a number of reasons why your car insurance might be cancelled. The most likely reasons for a cancellation are:
Non-disclosure
This is when something your insurer needs to know is omitted from your insurance application. You may have forgotten to declare a claim you made a few years ago. Insurers use The Motor Insurance Database (MID) to check your insurance history.
This can also apply to any changes you make during your policy term. You'll need to tell your insurance provider if you change address, jobs, or modify your car. Read our guide on how to make changes to your car insurance policy for more information.
It's also important to tell your insurer about any claims or accidents you've had. Your insurer will ask you about any driving convictions and claims. It's always best to answer honestly, otherwise your insurer might cancel your policy.
Non-payment
Your insurer has a right to cancel your policy if you haven't been paying for it. They must give you sufficient warning and the opportunity to catch up on your missed payments though.
If you don't think you can make a payment, it's worth contacting your insurer as soon as possible. They may be able to work out a better payment plan.
It's never a good idea to ignore letters or emails from your provider. Your car insurance might be at risk if you stop paying your premiums, and can also affect your credit score.
The cost of car insurance can be daunting, and life can get busy. You might have missed the payment by accident if you've changed bank accounts, for example. If it happens, don't panic. Let your insurer know and make the payment as soon as possible.
Fraud
Fraud can land you on the 'cancelled insurance database' which makes it harder to get car insurance with a different provider.
Car insurance fraud can come in different forms, but here are some common examples:
- Fronting: This is when a driver claims to be the main driver of a vehicle to get a cheaper premium, but isn't actually the person driving the car the most. This is common among younger drivers trying to cut the cost of their insurance
- Staged accidents: Sometimes fraudsters will get together and stage an accident. They may try to make fraudulent injury claims. Another common scam is when a driver flashes their lights to allow another car to pull out, then purposefully crashes into them
- Vehicle dumping: Pretending your vehicle has been stolen is another form of fraud. Fraudsters might ditch their car somewhere, destroy it, or even sell it. Claiming for damages for an accident that never happened is insurance fraud.
What if my car insurance was cancelled and it wasn’t my fault?
If you think your car insurance was cancelled unfairly, you can issue a complaint to your provider. It's a good idea to stay calm and explain your reasoning thoroughly.
If you don't get a satisfactory response after eight weeks, you can contact the Financial Ombudsman who will look into the matter for you.
If your insurer has made a mistake they might repeal the cancellation. If this happens, make sure you've got this in writing in case anyone questions it in future.
It's important you don't drive while uninsured, so you might want to find a new policy in the meantime.
Can I get my void car insurance reinstated?
There are ways you can get your insurance reinstated, but it depends on the reason for the voiding. These can include:
Missed payment: If you missed a payment, you may be able to reinstate your policy if you pay the missed premium plus any interest, fees, or fines within the grace period.
Insurer error: If your insurance was cancelled due to a mistake, they may be able to 'rescind' the cancellation. This is when an insurance company treats a policy as if it never existed. You'll be put back in the position you were in before the policy started. This means the insurer should refund any premiums you've paid.
If your policy was voided for another reason, it's a good idea to contact your insurer to find out why.
Can I cancel my own car insurance?
Yes, you can cancel your car insurance. Before you cancel, there are a few things you may want to consider:
Cooling-off period
You should have a 14 day cooling-off period when you buy car insurance. This is a window of time where you can get a refund for any premiums you've paid. There might be a small amount taken off to cover the days the policy was active. You may also have to pay a cancellation or administration fee.
No-claims discount
If you decide to cancel mid-way through the year, it could affect your no-claims discount. You could lose your no-claims bonus if you haven't had a full year with your policy.
Refunds
If you've already made a claim, you might not be able to get a refund. This is because you've already had a payout from your insurer.
Policy terms and conditions
It's always worth checking the terms and conditions of your policy before you cancel. Your policy should outline what cancellation fees you'll have to pay.
Third-party services
If your policy includes third-party services, like breakdown cover, you might need to contact your insurer directly to cancel.
New policy
Before you cancel your policy, it's a good idea to make sure you've got a new one in place.
Statutory Off Road Notification (SORN)
If you've declared your car as SORN, you'll be able to cancel your policy once it's declared off the road. SORN is a legal declaration that a vehicle isn't being used on public roads. In other words, it's not required to be taxed or insured.
If you're ready to cancel, the process is relatively easy:
- Find your policy documents, which should include your policy number
- Contact your insurer by phone, email, letter, or online
- Give the necessary information, including your policy number, personal details, and the reason for your cancellation
- Get confirmation that your insurer has cancelled your policy.
I’ve been refused car insurance, what can I do?
You can contact the Financial Ombudsman if you think you've been refused insurance unfairly.
If the reason is valid, you may need to contact a specialist insurance provider.
Will the cost of my car insurance go up after being cancelled?
Yes, it's likely the cost of your car insurance will go up after it's cancelled.
If your insurer cancels your policy, it's likely because they think you broke the rules. This can make finding insurance harder in future, and you'll probably pay more for it. Insurance cancellations stay on your record for the rest of your life.
If you cancel your car insurance, you may have to pay a cancellation fee. And you might get a refund, minus any administration fees. You could also lose your no-claims bonus for the year. The good news is that if you've cancelled the policy yourself it shouldn't affect your car insurance in future.
Tips to avoid voided car insurance
To avoid running into trouble when it comes to getting insurance, you'll want to avoid cancellations. Here's a few things you can do:
- Fill out any paperwork honestly and accurately
- Report any incidents, such as fire, water damage, or theft, even if you're not making a claim
- Make sure you declare any motor-related convictions or penalty points to your insurer
- Tell your provider about any changes to your address or job title. As this information is used to work out the cost of your insurance
- Report any changes to your annual mileage
- Get a dash cam fitted. If you're targeted by fraudsters, a dash cam can give crucial evidence if you are involved in an accident
- Make all the payments on your policy in time.
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