My car insurance has been cancelled. What happens now?

Before looking for another policy, find out exactly what the insurer has done. A policy that has been cancelled isn't necessarily the same thing as one that has been voided from the start. The wording matters, because future insurers may ask different questions about cancellations, refusals, voided policies and special terms.

Get the reason in writing

Sometimes the reason is straightforward: a missed payment, a document that was never supplied, or information that did not match what the insurer expected. In other cases there may be a dispute about what was declared when the policy was taken out. Ask the insurer to explain the reason in writing if it isn't already clear.

Do not leave the cancellation out later. When you apply elsewhere, answer the questions you are actually asked. If an application asks whether you have ever had insurance cancelled, refused or made subject to special terms, leaving out a previous cancellation can create a much bigger problem later. If you are unsure what a question means, ask the insurer or broker before buying.

A specialist broker may be worth trying

Mainstream comparison sites are useful for many drivers, but a driver with a cancellation in their history may find that fewer insurers quote. A broker or insurer that deals with more unusual risks can sometimes be worth trying. What matters is to describe the circumstances accurately rather than trying to make them fit a standard answer.

Keep the paperwork

Keep the cancellation notice, emails and any notes of telephone calls. If the cancellation resulted from an administrative mistake and the insurer later corrects its records, written confirmation can be useful when you arrange cover in future.

Make sure cover has really started

Don't assume you're covered while you sort the problem out. Check when the old policy ended and make sure new insurance is actually in force before the car is driven or kept on a public road where insurance is required.