If your car insurance company cancels your insurance policy, then this cancellation will be on your record and will be confirmed to other insurers if requested.
How Long Will the Cancelled Car Insurance Stay On Record?
Technically, the cancelled insurance will stay on your record indefinitely. However, when considering you for cover, some insurers will only request relevant information from the past five years. Others may ask for a longer insurance history.
How Will Cancelled Insurance Affect Future Policies?
If you’ve ever had an insurance policy cancelled, then you may struggle to get affordable cover.
Some insurers may refuse to cover you at all. Others may cover you, but they may charge you higher premiums.
Because of this, you might be tempted to withhold certain information when you try to take out a new insurance policy like choosing not to mention that a previous policy was cancelled.
However, failing to disclose information like this is a form of fraud. You need to be as truthful as possible, or you may face some serious problems further down the line.
Why Do Car Insurance Companies Cancel Policies?
Insurers may choose to cancel a policy for a number of reasons, including
- Non-disclosure or misrepresentation– Not telling the insurer important facts when you take out the policy, such as your occupation, driving history, or claims record.
- Failure to update details– Not informing them of important changes (e.g. address, job, annual mileage, modifications to the car).
- Driving without a valid licence– If you’re disqualified, fail to renew, or your licence is revoked.
- Unpaid premiums– Missing instalments or failing to pay in full.
- Fraudulent claims– Making a dishonest or exaggerated claim.
- Using the car for undeclared purposes– For example, using it for courier or taxi work when your policy only covers social or commuting use, using it for commuting when your policy only covers you for social, domestic and pleasure.
- Criminal convictions– Certain convictions (especially motoring-related) can make you uninsurable under that policy.
- High-risk vehicle modifications– Installing performance upgrades or changes without approval from the insurer.
Having a cancelled insurance policy on your record may make it difficult for you to get subsequent cover, while raising the price of any future premiums.
How To Avoid Car Insurance Cancellation
- Be as open and honest with your insurer at all times.
- Report all incidents as soon as possible, even if you don’t intend to make a claim.
- Notify your insurer of any changes to your circumstances that may affect your cover – including car modifications, a new job, a new house, or other changes to your lifestyle that may increase or decrease your annual mileage.
- Take care when completing forms, to ensure you’re providing the most accurate and up-to-date information.
- Set up a Direct Debit to ensure you never miss a premium payment.
What To Do If Your Insurance Has Been Cancelled
If your insurer has cancelled your policy, they should let you know in writing. They will also clarify just why they chose to cancel your policy.
You can appeal the cancellation if you feel there’s been an error or an oversight. Contact your insurer as soon as possible, to see if there’s anything you can do. If you cannot appeal the cancellation, then you will have to find new cover. It’s illegal to drive without insurance, you should not use your car again until you’ve found a new insurance provider.
Insurance Cover For Cancelled Policyholders
At Go Girl, we offer dedicated insurance policies for drivers with bad credit or with cancelled policies on their records.
Learn more about our cover for cancelled policyholders, and get a free quote online today.
