Do you always have to declare a cancelled car insurance policy

Coldste
Coldste Posts: 15
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edited 1 February at 9:44PM in Insurance & life assurance
Right we’re moving house in March/April and the number of providers who are willing to insure our cars has dropped compared to where we live now. In the small print on our car insurances it says to let them know if you move and they’ll either adjust the policy or if their underwriter can’t provide cover then they’ll have the right to cancel. 

Now if we let them know like a week or two before we move and the companies say “oh we don’t cover that postcode, so we’ll need to cancel the policy.”

 Would we need to declare that to future companies that it was cancelled by the company despite us not misleading or trying to deceive the insurance company. As this postcode wise is nothing we can control
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  • 400ixl
    400ixl Posts: 2,641
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    No, not in that circumstance, you are doing a mid term adjustment which they cannot cover. It is entirely different to having a policy cancelled for reasons such as fraud or non disclosure.
  • Spies
    Spies Posts: 1,949
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    You should have chosen to cancel the policy not them, as you will now have to declare it on future policies which will likely drive up your premium.
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  • 400ixl
    400ixl Posts: 2,641
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    Spies said:
    You should have chosen to cancel the policy not them, as you will now have to declare it on future policies which will likely drive up your premium.
    No they won't, it is a mid term adjustment that the insurer would be declining to cover, it does essential entail them cancelling the policy by mutual agreement.
  • Spies
    Spies Posts: 1,949
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    400ixl said:
    No, not in that circumstance, you are doing a mid term adjustment which they cannot cover. It is entirely different to having a policy cancelled for reasons such as fraud or non disclosure.
    It's still a cancelled policy by them, it doesn't matter what reason.
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  • cymruchris
    cymruchris Posts: 4,882
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    No - as said above - in that circumstance where they've chosen not to continue cover at your new post code, that's not something that has to be noted as a policy cancellation on every quote between now and eternity. The question about whether you've had your insurance cancelled usually covers when you've been naughty and not told the whole truth when you set up your policy.
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  • Aretnap
    Aretnap Posts: 5,137
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    edited 1 February at 10:05PM
    No, because in that situation it's actually you initiating the cancellation, not them. Imagine phoning them up and having a conversation asking these lines:

    YOU: "Hello, I'm thinking of moving from Wisteria Avenue, Poshbury to Urban Blight Terrace, Crackville. Will you be able to cover me at my new address please?"
    THEM: "I'm sorry sir, we don't cover addresses in Crackville."
    YOU: "Fair enough. In that case I'd like to cancel my policy please. I'd better find another insurer."

    You see what happened there? Your insurer didn't cancel the policy - you did.

    Of course the conversation might not go along those exact lines but the end result is always the same - it's a consumer initiated cancellation so not declarable. If you wanted to keep your policy badly enough you could always stay at your old address after all, so ultimately it's your choice whether to cancel. A declarable cancellation is when your insurer cancels the policy and gives you no say in the matter, for example because you've lied about something, or not kept up with the payments.
  • 400ixl
    400ixl Posts: 2,641
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    Spies said:
    400ixl said:
    No, not in that circumstance, you are doing a mid term adjustment which they cannot cover. It is entirely different to having a policy cancelled for reasons such as fraud or non disclosure.
    It's still a cancelled policy by them, it doesn't matter what reason.
    No it isn't and yes it does.

    The OP gets in touch for a mid term adjustment, the insurer declares they will not provide the cover and the OP cancels the policy. There is nothing in there that means the OP has to declare anything in the future.

    It happens all the time and there is nothing long lasting in it. The Op may lose some money in cancellation fees, thats about it.
  • Spies
    Spies Posts: 1,949
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    IF the OP cancelled it that's fine, but if the insurer said, we can't insure you anymore so we have no choice but to cancel the policy then it's classed as a cancellation.

    OP needs to ring and clarify who cancelled it. 
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  • HillStreetBlues
    HillStreetBlues Posts: 3,093
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    edited 1 February at 11:04PM
    400ixl said:
    Spies said:
    400ixl said:
    No, not in that circumstance, you are doing a mid term adjustment which they cannot cover. It is entirely different to having a policy cancelled for reasons such as fraud or non disclosure.
    It's still a cancelled policy by them, it doesn't matter what reason.
    No it isn't and yes it does.

    The OP gets in touch for a mid term adjustment, the insurer declares they will not provide the cover and the OP cancels the policy. There is nothing in there that means the OP has to declare anything in the future.

    It happens all the time and there is nothing long lasting in it. The Op may lose some money in cancellation fees, thats about it.
    I agree, it will be deemed the customer has cancelled, much the same if you change car.

    If the insurer wasn't told about the change of address, then that can lead to the insurer cancelling.
    Let's Be Careful Out There
  • Aretnap
    Aretnap Posts: 5,137
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    edited 2 February at 4:45AM
    Spies said:
    IF the OP cancelled it that's fine, but if the insurer said, we can't insure you anymore so we have no choice but to cancel the policy then it's classed as a cancellation.

    OP needs to ring and clarify who cancelled it. 
    Read the first post again. Nobody has cancelled anything. The OP hasn't even moved yet, or asked his insurer whether they can cover his new address.

    So long as the OP informs his insurers before he moves, there is no chance whatsoever that this is going to end up with a recorded cancellation that he has to declare in future. He can confirm that with them when he calls them - if they don't want to cover him at the new address (which is by no means a certainty anyway).

    (Obviously things would get murkier if the fact that he's moved without telling them comes to light after he has an accident... but nobody is suggesting that)
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