What to Do When You’ve Previously Cancelled Your Car Insurance

Cancelling your car insurance can feel like ending a winning streak on Mario Kart. Goodbye star power, goodbye perfect insurance record. Eish.

But don’t worry, you’re not out of the race. Once you’re back on track with your finances you can get your cover back, too.

Getting new insurance after a cancellation comes with a few need-to-knows. Below we tell you what they are, and we’ll stop with the racing game puns now too, promise.

How Does Previously Cancelled Car Insurance Affect a New Policy?

So, here’s the deal. A break in your insurance record puts you in a higher risk category for the insurer than if you had uninterrupted coverage. This means the next time you take out insurance your monthly premiums may be higher.

Why? Because previously cancelled car insurance is a sign that you might be financially unstable and could miss future payments. The insurer may also worry that you’ve been driving without insurance, which suggests a willingness to take risks.

By the way, here’s how car insurers calculate your risk profile.

Another factor is that they may put you through stricter underwriting criteria. Basically, the insurance company will be checking you out more closely, especially your driving history, credit score, and other factors to assess how risky you are.

But look, having an uninsured period is still better than missing payments. Not paying your monthly debit orders can lead to late fees, affect your credit score, and make it much harder to get insurance in future.

Can I Reinstate My Old Policy or Should I Take Out a New One?

Good question. With most insurers, you can’t reinstate your old policy if more than 30 days have passed since you cancelled it.

The insurer might want a new underwriting review, which takes time and means you might have been better off getting a new policy altogether.

Getting New Insurance After a Cancelled Car Insurance Policy

Even if your cancellation period means your premiums will be higher, there are still ways you can get a competitively priced policy after a prior cancellation. Here are some of them:

Adjust Your Coverage

Depending on how long it’s been since you cancelled your car insurance policy, you may have had a birthday or two.

Turned 25 recently? Congrats, not only can you now hold public office in the US (who knew!?), but your car insurance premiums might be less. You’re officially seen as a safer, more experienced driver than the 24-year old laaitie you were before.

Another option here is to switch from an all-inclusive option like comprehensive car insurance to something a little simpler, like third-party only insurance. This will help you maintain your insurance history but be much easier on your wallet. Be aware, though, that your cover will decrease if you move away from a comprehensive car insurance policy.

Make Way for a Better Deal

Insurers often offer a discount for bundling your car, building, and home contents insurance with them. Plus, having a clean claims record doesn’t hurt, either. Check in with your provider to find out whether you’re eligible for savings on these things.

Increase Your Excess

Imagine a seesaw on a playground. On one side, you have your insurance premiums. On the other, there’s your excess. When one of these goes up, the other usually comes down.

Increasing your excess can be a great solution for lowering your premiums. Especially if you’re a low-risk driver.

Shop Around

Shopping around is a great way to get the best deal.

But it can also be a big slog … unless you use Hippo.

With our handy comparison tool, you can gather car insurance quotes from 11 top South African providers and compare them side by side in a matter of minutes. It’s all online and there’s no need to phone separate providers.

Whether you need comprehensive car insurance; third party, fire, and theft car insurance; or third party only car insurance, we can help you get quotes in a jiffy.

Once you’ve picked the deal that works for you, set a yearly reminder to assess your insurance coverage. This will help to ensure that it’s still giving you everything you need at the right price point.

With lower premiums you can get back on track with those debit orders. Lekker.

Please note the above information is for information purposes only and does not constitute financial advice.