If you’ve recently been refused car insurance or had your policy cancelled or voided, you may want answers, why did this happen and what should you do next? There are a variety of reasons why a policy might get declined, whether that’s by simple error or in cases where penalties haven’t been disclosed properly.
The good news is, if you’re looking for a competitive car insurance policy, a declined quote or cancelled policy doesn’t necessarily mean you can’t get insured again. When drivers fully disclose information about their driving history, including any penalties, there will still be insurance policies that could work for you.
If you’ve been declined an insurance policy lately, or worried about the consequences of a refused, cancelled or voided insurance certificate, then read on to find out what it means and what you should do next.
Did You Know…
It won’t always be the case that your provider will tell you why you’ve been refused car insurance. If you’re completing a form online, you may simply receive higher than expected premiums, or an outright denial. At this stage, you may want to consider calling the agent or broker to determine the reasons behind your denial of coverage.
Why Am I Being Refused Car Insurance?
Being refused car insurance can feel frustrating, especially when the reason isn’t made clear. The most common reasons insurers refuse to quote or offer cover include:
- A poor claims history or multiple at-fault accidents on your record
- Unspent driving convictions, such as drink-driving (DR10), drug driving or dangerous driving
- Previous policy cancellations that haven’t been declared
- The vehicle type, high-performance, imported, or heavily modified cars carry more risk
- Your postcode, if it has a high rate of vehicle theft or accidents
- Your age or lack of driving experience
- Medical conditions that affect your ability to drive safely
Can a Car Insurance Provider Refuse to Insure You?
Yes, if it’s lawful, an insurance provider can refuse to insure you. This means, if a provider views you unfavourably, they can reject your application, making it harder to use or enjoy your car.
Not every refusal is your fault. If you live in an area with a high number of vehicle thefts, this may lead to insurers refusing you adequate levels of protection. Other factors, from insuring performance cars to claims histories, can affect how easy it is to arrange comprehensive cover.
Terms and conditions will vary between insurers, but you’ll have more options when you work with an independent car insurer. They’ll understand how to arrange a policy with specialist underwriting and use their experience of insuring everyone from convicted drivers to disqualified or banned drivers as well as owners of modified cars.
If you’re a convicted driver, arranging cover without a specialist’s support can feel daunting, if not impossible at times. That’s why Keith Michaels has designed convicted driver car insurance that’s all about understanding your unique circumstances. We won’t judge you for your convictions, pricing you out of a policy. Instead, when you’re coming out of the other side of a driving conviction, we’re here to help.
What If No One Will Insure Me?
If you’ve been refused car insurance by every mainstream provider, you still have options:
- Contact BIBA (British Insurance Brokers’ Association) on 0370 950 1790: they refer you to specialist brokers who handle non-standard risks that comparison sites reject automatically.
- Use a specialist broker such as Keith Michael: comparison sites use automated eligibility checks that immediately exclude high-risk profiles. A specialist broker negotiates directly with underwriters on your behalf.
- Check your CUE record: errors in the Claims and Underwriting Exchange database do occur. You can request a copy of your claims history through the Motor Insurers’ Bureau to make sure the information insurers are seeing is accurate.
- Consider the reason for refusal: some issues have a fixed time period (an unspent conviction will eventually become spent). Others like a fraud-related cancellation are permanent, but specialist insurers still have products for these cases.
- Check for CIFAS markers: if fraud was involved in a previous cancellation, a CIFAS marker may be recorded against your name. You can request a copy from CIFAS directly.
Under Financial Conduct Authority (FCA) rules, an insurer doesn’t have to explain why they refused to quote, but you have the right to complain if you believe the refusal was unlawful or discriminatory.
Why has my Car Insurance Been Cancelled?
Cancelled car insurance is another issue drivers can face. An insurer can cancel your policy, typically for:
- Non-payment, missed or failed premium payments
- Non-disclosure: they discover information was omitted or inaccurate at application
- Fraud: fronting, falsified claims, or misrepresentation
- Change in risk: some insurers can cancel mid-term if your circumstances change significantly and they no longer want to cover you
Insurers must give you notice (usually 7-14 days in writing) before cancelling a policy, except in cases of fraud where they can cancel immediately.
What Happens If I Voluntarily Cancelled My Car Insurance Policy?
If you determine that you no longer need a policy, such as if you sell a vehicle, then you can cancel your policy at any time. But, depending on the circumstances, it may be more cost-effective to wait until the end of a policy. For example, if you’ve found cheaper premiums elsewhere, there may be a forfeit fee if you terminate a policy early.
After you’ve cancelled a policy, you won’t be legally allowed to drive your vehicle until you arrange cover for it again under another policy.
Does a Non-Renewal Count as a Cancellation?
No, as policies are typically renewed every year, it’s perfectly fine to arrange for different cover when one policy ends. You simply need to arrange for a new policy; during this time, it won’t count against your record as a cancellation, and you won’t incur fees.
Void Car insurance: What Does it Mean?
Voided car insurance means the policy is treated as if it never existed. The insurer cancels cover retrospectively from the start date (inception), not from the date the issue was discovered.
Key consequences:
- Any claims made under the policy can be rejected, including ones already paid out
- Third-party claims may also be affected
- You get no refund
- You must declare it on every future application permanently
Void car insurance almost always happens because of material non-disclosure where the insurer finds out after a claim is made that you withheld or misrepresented information when you took the policy out.
What’s the Difference Between Voided and Cancelled Car Insurance?
If you’re ever refused car insurance, the result is always the same: you won’t be getting insured by a provider if they deny your application. But if you’re wondering why you’ve been refused, you need to start by understanding the language the insurer used.
There are subtle, but clear, differences between a policy that’s been voided and one that’s been cancelled.
| Voided Policy | Cancelled policy | |
| What it means | Treated as if it never existed, cover removed back to inception | Terminated from a specified date |
| Effect on past claims | All claims invalidated, including any already paid | Claims made before the cancellation date remain valid |
| Common cause | Non-disclosure or inaccurate information at application | Missed payment or failure to update policy details |
| Refund | Unlikely, insurer may argue risk was never validly accepted | Depends on terms and how much of the policy period remains |
| Must declare? | Yes, permanently | Yes, permanently |
A common example of cancellation happens if a policy owner misses a payment or fails to update policy information on time.
Can I Get a Refund for a Voided or Cancelled Car Insurance Policy?
A refund after a policy has been terminated isn’t guaranteed. It will likely depend on the terms and conditions of your policy, the stance of an insurer, and the severity of the reason that’s caused an insurance cancellation.
You Think You Might Miss a Payment? Here’s What You Should Do Next
Missing a payment, whether late or altogether, can result in your policy being cancelled, which stays on your record permanently and affects every future application. If you think you’re going to miss one, act before it happens:
- Contact your insurer immediately: most providers have a grace period and would rather arrange a short deferral than cancel your policy. Don’t wait for them to chase you.
- Check your payment details are up to date: many missed payments are caused by an expired card or changed bank account, not financial difficulty. Log in and verify before the due date.
- Ask about a payment plan: if you’re struggling, some insurers will restructure your payment schedule rather than cancel. You won’t know unless you ask.
- Don’t just cancel the direct debit: stopping payment without telling your insurer is treated the same as non-payment and will result in cancellation. Always communicate first.
If your policy is cancelled for non-payment before you can resolve it, you must declare this on all future applications. Getting ahead of the problem is always cheaper than dealing with the consequences.
What is a Non-Disclosure (or Omission) in Car Insurance?
When you’re completing an application, you should truthfully declare relevant information about your driving history, including unspent and pending convictions. But, if a provider discovers omitted information from your application, they could void your policy (and all past and present claims will be invalidated since the policy started).
Missing information, or omissions, count as a non-disclosure. This is where information hasn’t been sufficiently disclosed. This could include things like:
- You haven’t mentioned previous cancellations
- You’ve failed to declare convictions from the last few years
- Omissions about previous claims
- Your medical records are not up to date, including disclosure of conditions that could affect your driving ability
Any failures to inform insurers about accurate information during an application could carry consequences later into a policy. It doesn’t matter when a policy starts, if you’ve been caught out by a non-disclosure, any claims under that same policy will be invalidated.
Do You Have to Tell Car Insurers About Convictions?
You must declare any unspent convictions on your record. In a scenario where you have driving convictions, withholding information is a costly mistake, potentially invalidating your protection.
Only unspent convictions will affect your policies. You won’t need to declare any spent convictions. But you may be asked about others included on your policy, and you should consider if they have any unspent convictions.
You will not, however, need to disclose any warnings, cautions and reprimands to an insurer.
So, You’ve Had a Policy Declined, Is It Hard to Get Car Insurance After It Being Cancelled?
If your policy has been cancelled, you will be asked to declare this on future applications. This means wrongdoings on car insurance policies can negatively affect your reputation (and risk) in the eyes of an insurer.
For many insurers, a cancellation is a red flag on your history and will trouble your future search for insurance. It may even result in higher monthly premiums.
When Should I Reach Out to My Insurer if Something Changes?
When information is withheld from an insurer, or is simply not updated, then a policy may be voided under non-disclosure. Non-disclosures could even be accidental, as failure to update a policy with relevant information could result in it being voided.
So, you should consider the following questions as they may affect your policy:
- Has your job changed?
- Has your residence address updated?
- Has your vehicle changed, even if it’s newly modified parts?
- Has there been a change of registration?
- Have you had a change of use in your vehicle, such as starting commuting?
- Has your mileage increased or decreased?
- Has there been a change of drivers?
If any of the above apply to you, then it’s good cause to update your policy. There are more reasons beyond those listed, but they should serve to remind you that your car insurance will need to stay up to date.
In some cases, even minor scrapes to major accidents, especially if they’re left off your application, could create serious consequences. You should always disclose information that you suspect might affect your insurance.
Ultimately, an insurer is trying to evaluate the risk of the policyholder. This means, after an application is submitted, they can validate your information, including claims history, accidents, and convictions, though a central database called CUE.
Higher risk drivers are more often offered costlier monthly premiums, but this can be a better alternative than no protection at all. Remember that It’s illegal to drive without insurance in the UK, if you drive without a valid policy, you will be convicted.
What Are the Consequences of Non-Disclosure?
Depending on the severity of a non-disclosure, the consequences could be costly and troubling.
If it’s decided that non-disclosures were accidental, such as a mistake on your application which occurred through miscommunication, then it may be that your policy premiums are adjusted to reflect the new (and accurate) information.
Yet, an insurer will be less forgiving if you’re caught withholding information on your application. When non-disclosures are determined to be deliberate, an insurer will very likely cancel or void your existing protection. This could even result in fraud.
How Long Does Cancelled Insurance Stay on Record in the UK?
There is no expiry date. This means that cancelled insurance will stay on your record for future insurers to find out. It may be harder to arrange a policy again after a cancellation for wrongdoing.
A criminal conviction can be ‘spent’ over time. But the same doesn’t apply to insurance claims and cancellations. This means an insurance cancelation will always need disclosing on policy applications.
Insurers may even ask about your previous history, whether that’s the past five years or longer, when it comes to finding out about previous insurance cancellations.
What Do You Mean by ‘Spent’ Convictions?
Whether convictions are spent comes down to the Rehabilitation of Offenders Act 1974 and the Exceptions Order 1975.
A spent conviction means previous criminal convictions will be removed from criminal records. This will not appear on a Basic DBS check.
What is Considered Fraud in Car Insurance?
Fraud can be defined broadly, and it might include incidents where:
- A driver has been caught driving without a full or valid licence
- A policyholder is not the main driver (which is calculated to lower premiums), which is called “fronting”
- Falsified information about the car’s everyday use
- Faking claims or theft for a pay-out
- Not properly disclosing where a car is kept overnight
You should always, as a rule, read your policy terms and conditions to understand how it might be potentially violated. A policy will always define its terms, so policyholders should make a habit of understanding what’s included.
Reducing the Risks of Policy Cancellations
In most cases of non-disclosure, an insurer may try to understand the policyholder’s intent. This means they will investigate why, and possibly how, information was withheld from an application.
Here’s how you can reduce the likelihood of losing your protection:
- Always update your personal and financial information (so you don’t, for example, miss payments) throughout holding a policy
- Tell your insurer about adding new drivers to a policy
- Disclose information truthfully during an application
- Update the insurer if you suspect your policy contains inaccurate information, or if it becomes out of date
Even if you have unspent convictions, declaring all relevant and accurate information about your history is the best way to ensure that you avoid cancellations and fraud.