If you have had your car insurance policy cancelled, you will no doubt be struggling to obtain another policy. Even if you believe it wasn’t your fault your policy was cancelled you will still be left struggling to re-insure your vehicle. Even if you do manage to find a company willing to offer cover, they will probably offer it at a very high price. This means you don’t have the luxury of comparing quotes. However, not all is as bad as it may seem as we are going to provide you with a guide to cancelled car insurance and explain everything you need to know to obtain the best deal possible for your circumstances.
Different types of policy cancellation
Before we go any deeper into our guide to cancelled car insurance, we want to make the different types of policy cancellation clear.
There are two types of car insurance cancellation. The first is when you the driver of the vehicle cancel the insurance. The second is when the insurance provider cancels it and this is the type that causes you problems.
You might wish to cancel car insurance yourself for numerous reasons. Perhaps you no longer drive the car, you cannot afford the premium and wish to find cheaper insurance or you have purchased a new vehicle and need a different policy. In this instance, future car insurance will not be affected and you will not have any trouble obtaining a different policy.
Of course, if you cancel your insurance policy you might have to pay a fee, but on a more positive note, you should receive a refund for the unused part of insurance if you paid for cover upfront.
So, essentially, you will only run into difficulty in regards to obtaining car insurance if the provider cancels your cover. When the insurance provider cancels your insurance policy it doesn’t look good on you, whether you actually did something or not to contribute towards that cancellation. You will also lose any money you have paid for the insurance policy if it is cancelled by the provider.
Common reasons for cancelled car insurance
Insurance companies can cancel your current policy and decline to offer you another policy for your car for numerous reasons. This also applies to any other provider you try to obtain a quote from if they ask if you have had a policy cancelled in the past.
Car insurance can be cancelled by providers for the following reasons.
- • You failed to disclose some information when taking out the insurance and the provider found out;
- • You didn’t tell the insurance provider the entire truth or swayed it in your favour. For instance, you may have failed to tell the provider about any modifications made to the vehicle or you had previous convictions you failed to report;
- • You failed to supply documents that the insurance provider had asked for;
- • There might have been a mix-up with the paperwork associated with the policy going through. For instance, the provider might not have received it back after you signed, it got lost in the post;
- • You might have had a change in your circumstances and told the provider of the insurance which has led them to cancel the policy;
- • You might not have fully understood the terms of insurance and the insurance provider or you now realise this and found the policy is not suitable for your needs;
- • You failed to comply with something required by the insurance provider. For instance, they might have asked you have a black box installed in your vehicle and you failed to do so;
- • You might have set up a direct debit to pay your insurance but the payment failed. Even if the error was genuine, maybe even the fault of the bank, your provider may cancel your policy.
The above are just a few of the many reasons why a policy might be cancelled, leaving you struggling to obtain a new car insurance policy with any other provider.
Where you stand if insurance is cancelled
Of course, whatever the reason for the cancellation, your fault or not, it leaves you in a precarious position. If you continue driving on the road without insurance, you are doing so illegally and will be fined if caught. You can be fined £300 for driving without insurance, plus you get six points recorded on your driving licence.
You can even fall foul of the law even if you are not driving an uninsured vehicle that is parked, thanks to a law called Continuous Insurance Enforcement aka CIE.
CIE came into force in 2011 to help to deal with the large number of drivers that were driving on the roads without insurance. Under the ruling, your registered vehicle has to be insured even when it is only parked, even on private land. In other words, your vehicle has to be insured at all times.
If the registered keeper doesn’t have insurance for their car and you are found out, you receive an advisory letter in the first instance. This is followed by a penalty of £100, your vehicle may be seized and you could possibly be looking at a court appearance.
Therefore, it is essential to obtain new car insurance as soon as possible following the cancellation of your policy.
Cancelled car insurance vs a policy that is voided
A cancelled policy should not be confused with a policy that has been voided by the insurance company. The two are very different and to some extent have a different effect on how easy it will be to get quotes and purchase cover in the future.
Insurance companies may void your insurance policy if the policy wasn’t valid when you took it out. For instance, you made a mistake when filling in the online form and your address wasn’t correct, or your job title or claims record.
Cancellation of the policy on the other hand is different. For instance, you might have made modifications to the vehicle and didn’t tell the provider about them or you changed your job and failed to update the provider with your new details.
If the policy is cancelled by the provider, for any reason, you will definitely have trouble in the future obtaining a new policy, whereas if it was voided you only might have issues in the future.
Why it’s so difficult to find car insurance if yours has been cancelled
You will find it difficult to obtain car insurance with any insurance provider if your previous policy was cancelled, whether you were at fault or not. There is no getting around this unless you can successfully argue your case and get the cancellation overturned. Insurance providers tend typically to distrust you, even if the action that led to the cancellation was innocent enough or was beyond your control.
For example, when taking out the policy you might have set it up with the provider to pay the insurance monthly through a direct debit. However, there might have been a mistake at your works office and your wages might not have been paid on time into the bank. With many living from wage-to-wage, your direct debit might have failed and the insurance provider cancelled the policy. So, due to circumstances beyond your control, your insurance was cancelled and you have now been penalised.
In this instance, you are being ostracised as the majority of insurance providers refuse to provide you with a quote. Alternatively, you might be offered a quote but because the system flags you as a high risk due to your previous cancellation, the quote reflects this. Suddenly you might find you have to pay a great deal more for the equivalent cover that you had before the cancellation.
We understand the panic and difficulty you are faced with if you have had a policy cancelled, but whatever the reason for that cancellation we can help. So, give us a call and speak with one of our trained advisors. Explain your personal circumstances and we will help you to obtain a new policy for the best possible quote.
The importance of transparency when applying for insurance
It is important when applying for car insurance that you are absolutely truthful. It can be tempting to tell what you think is a small white lie to try to keep the quote down; however, it is never worth it when faced with cancellation or the policy being voided if the provider finds out.
The only way to avoid the worry of cancellations in the future is honesty. A single cancellation is bad enough; it would be devastating to receive another.
How insurance providers know your car insurance was cancelled
It is not difficult for insurance providers to find out that you have had a car insurance policy that was cancelled. This is because there are no time restraints as there are with the provider asking if you have spent convictions and such.
You could have had your car insurance cancelled many years previously and you have to disclose this fact if asked. While we ask this question, it doesn’t automatically mean that you will be refused car insurance this time. We take individual circumstances into consideration to find the most suitable quote for your specific needs.
How to obtain affordable insurance if your policy has been cancelled
Here at MyfirstUK insurance, we understand the difficulties that can arise when dealing with cancelled policy insurance and obtaining new cover. We help you to find
the most suitable insurance for the best rate for your circumstances, whatever the reason for the cancellation.
You don’t have to search the internet or phone around different insurance providers only to find you are turned down or the quotes are out of your price league just because your previous policy was cancelled.
Put your policy in our hands
Instead, put your policy in our hands and allow us to match you with a policy. We will help you find you the best insurance deal possible. This is because, among other things, we specialise in cancelled car insurance, whether it has been refused, voided or declined.
All you have to do is head to our Get a Quote page for cancelled policy insurance to obtain a quote and it is easy to apply, taking just minutes.
Give us a few details about your circumstances
We ask that you provide us with your details, including your full name, address, telephone number and date of birth, along with other information relevant to your policy.
As mentioned before it is important to answer all questions honestly, as this is one of the reasons your policy can be cancelled. So, tell us if you have had your car insurance cancelled in the past along with any accidents or prior claims.
We find you the best possible quote for your circumstances
We will also ask you questions about your vehicle and any additional driver and then provide you with the best quote possible based on your circumstances.
Cancelled car insurance can happen for numerous reasons, some of which you may bring on yourself and some which might have been out of your hands.
Whatever reason for the cancellation it is essential to obtain car insurance as soon as possible. Remember, you still require cover whether you are driving the vehicle or you have it parked on your driveway.
We can help you to find a new policy whether your insurance company cancelled it or the policy was voided. Whatever the reason you are without insurance we can help you to find the best deal possible.
All you have to do is fill in our online form and leave your details to receive your quote. Alternatively, you can give us a call on 0333 305 5116 to talk to one of our specialist team about your specific insurance needs.