Car Insurance for Cancelled Policy Holders & Bad Credit

Can you get car insurance if you’re a driver with bad credit, or a cancelled policyholder?

Find out how bad credit affects your car insurance, how you can get cover if you have been refused insurance or had a previous policy cancelled by your insurer, and how you can save money on your policy.

Why Do Car Insurance Policies Get Cancelled?

There are many reasons why an insurer might cancel a car insurance policy. If you miss premium payments, your insurer is likely to cancel your policy. After all, why should they insure somebody who’s not paying for their service?

Deliberate or reckless misrepresentation is another reason insurers can cancel or void policies. You have an obligation to tell your insurers about certain things, including car accidents, car modifications, changes to your driving licence including points and convictions and changes to your personal circumstances. If you don’t notify your insurers of these changes, you may find your policy being cancelled.

Why Do Policy Cancellations Affect Insurance?

Policy cancellations affect car insurance because they suggest to insurers that you’re a higher risk driver. If you have your policy cancelled, insurers might reasonably presume that your policy was cancelled for a reason. As far as they’re concerned, insuring you is a risk. So they’ll either charge you a higher premium, or they’ll simply refuse to insure you at all.

Car insurance is all about risk. Insurers view all drivers as either low-risk, or high-risk. Insurers believe that high-risk drivers are more likely to get involved in a car accident, and thus more likely to make a claim on their policy. As claims cost insurers money, it costs more for them to insure high-risk drivers.

Car Insurance for Cancelled Policy Holders

Penalty points only stay on your driving licence for a fixed period of time. Unfortunately, if you have had a cancelled policy by a previous insurer, it will stay on your driving record indefinitely.

Any time you take out a new policy, you must tell your insurer about any cancelled policies. If you don’t disclose this information and purchase a policy, your new insurer might cancel your policy once again when they find out. As we said above, misrepresentation is grounds for cancellation or voidance.

You will find it even harder to find affordable cover if you have more than one cancelled policy on your record.

How to Get Car Insurance With Bad Credit

A bad credit score doesn’t necessarily mean you’ll have to pay more for your car insurance but it could determine how an insurer asks you to pay for your insurance.  Some may be happy to allow you to make monthly payments and others may insist you make an annual lump sum payment.

At Go Girl, we specialise in giving careful drivers comprehensive cover at an affordable price. So even if you have a poor credit rating, get in touch for a quote in minutes.

How to Get Cheaper Car Insurance with Bad Credit

Some insurers impose blanket bans on cancelled policyholders. Others have automated screening systems that will immediately exclude you from getting a quote if you have a cancelled policy on your record.

But not all insurers are like this. If you want to get cheaper car insurance as a cancelled policyholder or with bad credit, you just need to find an insurer who treats clients on a case-by-case basis.

At Go Girl, we believe that cancelled policyholders and those with bad credit deserve a second chance. We will take all of your circumstances into account to help you find comprehensive cover for less.