Was your car insurance policy cancelled?
First, it’s important to determine just why your insurers cancelled your policy.
Why Was My Car Insurance Cancelled?
Here are some common reasons why insurers cancel policies:
Non-Payment – You have a contractual obligation to pay your car insurance premiums, either as an annual sum or in monthly instalments. If you don’t keep up payments, your insurer may cancel your policy. But they usually do not do this outright. Most insurers will give you an advance warning, and if you’re upfront, you may be able to come to an agreement that works for everyone.
Non-Disclosure – You have to be completely open and honest with your insurers. When taking out a policy, you must tell them about any past claims or incidents. And you must also tell them about any new incidents that occur, even if you don’t intend to make a claim. At the same time, you must tell them if any of your circumstances change – whether that’s your name, your address, or your employment situation. If you fail to disclose any material facts, whether it’s intentional or not, then your insurer may have grounds to cancel your policy.
Fraud – Any form of fraud gives insurance companies grounds to cancel your policy on the spot. So make sure that you are honest when completing your quote and buying your policy.
What to Do If Your Car Insurance Was Cancelled?
Your insurer will make contact with you to let you know that they intend to cancel your policy. And when they get in touch, they should tell you on what grounds they’re cancelling your insurance.
If you’ve made a genuine mistake, or if you think there’s been some kind of oversight or admin error, then you may be able to appeal the cancellation. So contact your insurers as soon as possible. Explain the situation, listen to what they have to say, and you just might be able to fix the situation.
But if your insurer does cancel your policy, then you’ll have no choice but to look for a new insurer as soon as possible.
Do not drive again until you’ve got new insurance cover in place. It’s illegal to drive without car insurance, and there are severe penalties for anyone who does so.
Who Will Insure Me If I’ve Had a Cancelled Policy?
Remember that car insurers treat non-disclosure as grounds to cancel your policy. You’ll need to be upfront when taking out a new policy. This means you’ll have to tell any new insurer you contact that your previous policy was cancelled.
Unfortunately, you’ll have to do this every time you take out insurance from now on, no matter how long ago the cancellation occurred.
Some insurers may treat a cancelled policy as a sign that you’re a higher risk driver. As a result, they may raise the price of your premium. And some insurers may still choose not to offer you insurance.
However, certain insurers are happy to cover drivers with cancelled policies – though you should expect to pay a higher premium.
You can read our full guide to car insurance for cancelled policyholders.