Lots of insurers will automatically decline to offer you a quote when you declare a previously cancelled or voided insurance policy – and those that do quote may often charge higher premiums.

A cancellation or voidance on one type of insurance policy must be disclosed on all other types of insurance applications (e.g. car, van, home, motorcycle, pet, travel, business and life insurance).

Voiding or cancelling your policy often gives the insurer the right to decline your claim.  It is no coincidence that lots of policies are terminated by insurers immediately after a claim is submitted.

As well as rejecting your own claim, a cancellation or voidance often gives the insurance company the legal right to recover the cost of any third-party claims directly from you.

Whilst there are certain circumstances that allow your insurer to keep the premiums you have paid, we frequently advise on cases where insurers are witholding premiums (or demanding even more money) unfairly and unlawfully.

If you are joint policyholder or a named driver on somebody else’s policy, then your cancellation or voidance must be disclosed to their insurers also. It is not just policies ‘in your own name’ that are affected.

Insurers are often quick to label even the most minor mistakes as ‘fraud’ or ‘fraud-related’.  The industry uses multiple databases to record policy cancellations and voidances and there are few controls over how and when they use them.

Many insurers record policy information on the CIFAS database, which is a fraud prevention service that attaches to your credit report.  This database is routinely checked by financial service providers and prospective employers alike.