CAR INSURANCE CANCELLED WITH NO FAULT ACCIDENT

Bigphil1474

I think it's the terminology they are referring to - 'cancelled' usually happens if you fail to pay, lie or withhold information, commit insurance fraud etc. , whereas this is more about the policy being cancelled/terminated as it is no longer a valid policy as the car is gone. A cancelled policy due to some irregularity would be kept on your record, whereas a one that is terminated as you no longer have an insured car wouldn't, I would guess. Not sure it's utter nonsense.

MyRealNameToo

Bigphil1474 said:

I think it's the terminology they are referring to - 'cancelled' usually happens if you fail to pay, lie or withhold information, commit insurance fraud etc. , whereas this is more about the policy being cancelled/terminated as it is no longer a valid policy as the car is gone. A cancelled policy due to some irregularity would be kept on your record, whereas a one that is terminated as you no longer have an insured car wouldn't, I would guess. Not sure it's utter nonsense.

First of all both parties can cancel a policy, customers probably cancel insurance more often than insurers do. In other places you would talk about fault or blame in the cancellation. So cancelling because you have changed your Mini for a Rolls Royce and your insurer doesnt insure such valuable vehicles is a "non-fault" cancellation, she as if your vehicles been written off and not replaced. 

Other things like non-payment, fraud etc would be fault cancellations where the policyholder has done something wrong. It's only these types of issues that future insurers want to know about.