Nearly half a million people a year could be struggling to get competitive insurance because they have previously had a policy cancelled or voided.
According to our research, more than 1,250 people per day who undertake car, van and motorcycle insurance applications online declare that insurers had previously refused cover.
That’s more than 450,000 people a year who have had their policy cancelled mid-term, been refused renewal terms, or seen their insurance voided in the event of a claim.
Insurers’ reasons for taking action can vary from cancelling because of non-disclosure of convictions, accidents or vehicle modifications to changing to a higher risk occupation or to a more sporty car.
These drivers may find themselves having problems finding good value cover in the future because many insurers will simply refuse to quote if you’ve ever had your policy cancelled.
And because the comparison websites don’t take the time to drill down into the reasons for the cancellation, you could end up paying over the odds if you stick to online-only providers.
Gerry Bucke, general manager at Adrian Flux, said insurance brokers can often find cheaper rates by speaking to customers on the phone.
“A computer programme can’t exercise any judgement beyond its own pre-set algorithms, whereas we can chat to people and investigate the reasons for the cancellation,” he added.
“Quite often we can provide much cheaper rates over the phone than these motorists will find online, because we can get a feel for the customer and use our strong relationships with underwriters built up over many years.”
He said that motorists should be aware that it’s now much easier for insurance providers to check up on drivers’ motoring history thanks to national claims and driving licence databases, so motorists can avoid the troubles associated with having their policy cancelled by remembering to accurately declare accidents and convictions when they take out their policy.