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Why has my car insurance provider cancelled my policy?

Legally, insurance providers can cancel your policy whenever they choose to and there are lots of reasons why they may choose to do so. Read on to find out why this might have happened and what the next steps are.

Lapsed Insurance

One of the most common reasons for an insurance provider cancelling your policy is simply that it has expired. Although many policies have an “auto-renewal” feature attached to them, if this is not the case, then the policy will lapse/expire at the end of the insurance period. If you still need insurance, then you just need to get a new policy. Be aware though, you could get a cheaper policy if you shop around, rather than just renewing with your current provider.

Payment Failure

If you are unable to pay for your insurance, such as a monthly payment to the insurance provider fails, then they may cancel your policy. If this happens, you need to get in touch with the insurance provider immediately as you are unable to drive your vehicle without insurance: it is a legal requirement.

Non-Disclosure

Another reason that they might cancel your insurance is if they find out that you failed to disclose something on your policy. For example, if you changed address then your original policy would not cover you for this new address. The insurance provider may then choose to cancel the policy as they are not prepared to insure you anymore with this change.

Fraud

Similarly to non-disclosure, if an insurance provider finds out that you have committed fraud in relation to your policy, then they may cancel your policy. For example, somebody might lie on their policy and pretend to be another, older person to reduce the cost of their premium. This is illegal and may result in criminal prosecution as well as having the policy cancelled.

If you’d like to find out more information about all things motor insurance, have a browse through the driving segment of our blog.

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