How Long Does Cancelled Insurance Stay on Record?

If your insurer cancelled your policy (or you did it yourself), you’re probably wondering whether (and how) it affects your chances of finding good and affordable car insurance.

So, how long does cancelled insurance stay on record, and what happens when the insurance is cancelled? 

Let’s find out.  

What Is a Cancelled Car Insurance Policy?

Cancelled car policies are policies that have been terminated before they were due to expire. 

In most cases, insurers cancel policies because they believe the policyholders failed to follow the rules outlined in the policy.  

Regardless of whether the policyholder deliberately withheld certain information from the insurer or it just slipped their mind (for ex. You forgot to tell insurance about points), the insurer has the right to cancel or void the policy altogether.

The policyholder can cancel their insurance themselves as well. This often happens when they find a better deal or can no longer afford their car insurance. 

How Long Does Cancelled Insurance Stay On Record?

There is no set time on how long a cancelled insurance can stay on record. 

Whether it will impact your chances of obtaining a new one, mainly depends on your insurer. Some insurers only request relevant insurance information from the last 5 years. Others might ask for a more detailed insurance history. 

Getting car insurance after the cancellation can be difficult and pricey. 

If your potential insurance provider asks about cancelled insurance in your past, it’s crucial to be truthful. Failing to disclose details from your insurance history can lead to more problems later on. 

Drivers Who Have Had Insurance Declined, Cancelled, or Voided

In addition to cancelling insurance, insurers can also void your policy or decline to cover you. 

Declined Car Insurance

Insurers have the right to reject any application for car insurance, with one exception– under UK law, it is illegal for car insurance providers to refuse to offer a quote to a person due to a disability. 

The most common reasons for refused insurance are a previous bankruptcy, a criminal conviction, or a previously cancelled policy. 

Cancelled Car Insurance

Insurers can cancel your policy if they believe that you failed to uphold your end of the bargain. 

For example, insurance providers usually terminate policies if the policyholder misses a monthly payment or fails to inform the insurer about changes to the vehicle or their personal circumstances. 

Still, when an insurer cancels a policy, they cover any claims that have been made before the policy was officially cancelled. 

Voided Car Insurance

A voided insurance policy is a policy that has been declared null from its start date. In this case, the insurer treats the policy as if it had never existed and won’t cover any claims you’ve made, including those that were made before they voided the policy. 

This often happens if the policyholder provided incorrect information or withheld certain details from the insurer when applying for the policy. 

Car insurance void can also happen after an accident. 

Why Do Insurers Cancel (Or Void) Car Insurance Policies?

Car insurance providers can cancel a policy for a number of reasons, including:

• Missed payments.
• Failure to disclose information deliberately or unintentionally (as outlined in the policy, such as not declaring an accident on insurance). 
• Multiple claims.
• Documents mix-ups.
• Fraud.

The most common reason insurance companies cancel policies is non-payment.

What Happens If Your Insurance Has Been Cancelled For Non-Payment?

If you’re falling behind on your premium payments, the first thing your insurance provider would do is contact you to remind you that you have missed payments. If you’re having trouble catching up, they might offer an alternative. 

If you continue to miss payments, your insurer will cancel your policy. 

It is possible to get your car insurance cancelled without notice, but it rarely, if ever, happens.

If your car insurance is cancelled for payment reasons, the policy provider is unlikely to agree to restart your policy or offer you a new quote. This means you’ll need to find a new insurer. 

Until then, you’ll likely have to leave the car in your garage – car insurance in the UK is a legal requirement, regardless of whether you need the car for work or personal use. 

Does Cancelled Car Insurance Affect You In Finding Insurance In The Future?

Having a car insurance policy cancelled or voided can seriously reduce your chances of finding a policy, especially an affordable one, regardless of whether your car insurance was cancelled due to non-disclosure or missing payments, and even if the cancellation wasn’t your fault. 

If you have a cancelled policy on your record, insurance providers will consider you a high-risk client and might decline your applications. 

Still, this doesn’t mean you won’t be able to find cover whatsoever. Some insurers offer car insurance for cancelled policyholders, but expect your next policy to be more expensive than your previous one.  

What Is a Rescinded Car Insurance Cancellation?

Insurers can revoke the decision to cancel a policy if they cancelled or voided it by mistake. 

When this happens, the policyholder’s record isn’t affected. This means you won’t have to search for insurance for cancelled policies and you won’t need to declare it to any insurer.

Bottom Line

A cancelled insurance policy can affect your chances of finding a new one. Insurance providers are often hesitant to offer a quote to anyone that has a record of missed payments, non-disclosure of information, and a previous cancelled policy.

There is no set time on how long a cancelled insurance policy stays on record, but you may not need to disclose it if it happened a long time ago (and your provider is only asking for insurance history from the last 5 years).