Common reasons providers cancel car insurance policies

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Car insurance can be cancelled by your provider for a number of reasons. You may wish to simply cancel your own policy yourself by paying a cancellation fee, receiving your refund and then being free to find alternative insurance elsewhere if you wish to do so. This will have little affect on you attaining insurance in the future from other providers, but if the policy is cancelled by the insurer, it can make finding insurance in the future much more difficult.

If your insurance is cancelled by your provider, it probably means that you have done something wrong, or they believe you to have done something wrong. When your provider cancels your policy you won’t need to pay any fees, but you also won’t receive any refund as you will have been deemed to have broken your contract with them.

Main reasons for cancellation:

Non-Payment

This is the most straightforward and self-explanatory reason for a policy to be cancelled; if you don’t pay they take it away. Not paying your premiums will lead your provider to withdraw their insurance and they have every right to cancel your policy at this point. The contract between you stipulates they provide insurance for a cost, if you don’t meet your end of the bargain they won’t either.

If you ever worry that you won’t be able to meet a payment, don’t ignore it, contact your provider right away as they have processes in place to help you both come to a more agreeable arrangement. Most providers will want to help you in these situations rather than cancel your cover.

Non-Disclosure

Another stipulation in the contract between you and your insurance provider is that all the details and information you provide them is accurate and that if you have nay changes in circumstances you should inform them immediately. If a  policy is cancelled due to non-disclosure then it means that the policy holders circumstances have changed but they have not informed their provider; this can be anything from a change of address to a driving conviction.

Failure to declare relevant information can result in your provider cancelling your cover so it is imperative that you inform them correctly of your circumstances and update them on any changes.

Fraud

Whereas non-disclosure refers to a miscommunication, there are more serious offences that are generally completed on purpose for monetary gain – these are known as fraud and result in your policy being cancelled immediately.

These can include fronting, where people name amore experienced driver as the main driver to get cheaper premiums even though they aren’t the person who will be driving the car the majority of the time; cash for crash scams where people will cause an accident in an attempt to blame the other driver; or pretending their car has been stolen.

Always make sure you pay your insurance premiums on time, update your provider of any changes in circumstances promptly and never try and defraud your provider in any way.

Following these guidelines, and if you compare car insurance online can assure you save money on your premiums in the future.

 

Phillip CollinsCommon reasons providers cancel car insurance policies

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