What to Do When You’ve Previously Cancelled Your Car Insurance and Need a New Policy


Toy cars simulating the dangers of driving without car insurance cover


If you cancel your car insurance for a period, let's say to save some cash during the lockdown, you may lose your no-claim bonus. Since you aren't covered, your underwriter may say that they are unable to confirm that you did not claim for anything.


Depending on how long your cancellation period was, you may find that the insurer will charge you a higher premium, or they may not accept your application at all. You might have to look for another insurer who is willing to take you on, but it's still going to hit your pocket hard.



Don't let those unpaid premiums stack up


You may be able to arrange with your insurer beforehand to cancel your policy at an agreed-upon time and date, but that obviously opens you to the risks of driving an uninsured car. (And in some circumstances, such as when you're still paying off your car, cancelling might not even be an option.) But many insurers may agree to continue covering you if you consent to paying the premiums in arrears. So you won't have actually helped alleviate your costs at all in the long term.


Don't just stop paying, or worse, cancel outright. Rather than letting those unpaid premiums stack up, shop around for a deal that works better for you.


Compare to find a deal


Cancelling your car insurance means you're now going to have to disclose that fact to the next insurer, and lose your no-claim bonus. That period in which your underwriter wasn't aware of what was happening with your car will turn out to be quite problematic.


Use our free online comparison tool to find and compare the cheapest car insurance deals, and get a no-obligation quote today. It's so much better than cancelling!


This article is for informational purposes only and should not be construed as financial, legal or medical advice.


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