A mother has expressed fury after her son's car insurance was cancelled due to speeding detected by a black box, and experts confirmed that the cancelled policy can remain on his record permanently, affecting premiums for life.
The issue came to light when the mother contacted Sky Money about her son's predicament. He had fitted a black box to reduce his premium after passing his driving test, but exceeded the speed limit, leading to immediate cancellation of his policy. She explained: "Being young and silly, he exceeded the speed limit, which the box obviously detected. He was immediately informed his insurance was cancelled."
Permanent blot on record
The mother noted that the cancellation never goes away. Every time her son seeks insurance, he must answer "yes" to the question: "Have you ever had insurance cancelled, declined or refused?" This narrows his options and significantly increases costs. Comparison websites do not allow explanations. She asked: "Do you think after a set amount of time he could deny it was cancelled?"
Consumer group Which? advised that insurers verify such history and that honesty is crucial. Dean Sobers, car insurance expert at Which?, warned: "If you untruthfully answer a question ... you risk invalidating the policy." He added that if an insurer asks if you have 'ever' had a policy cancelled, you must disclose it even if it was 20 years ago.
Unfair quirks of insurance
Sobers described the yes/no format without room for context as "one of the more unfair quirks of insurance." While motor offences may be declared for only about five years, policy cancellation often must be admitted indefinitely. Kara Gammell, car insurance expert at MoneySuperMarket, noted that some insurers ask about a specific timeframe, like the past five years, but others ask "ever," making it vital to read each question carefully.
Gammell stated: "Unfortunately, a cancelled policy doesn't simply 'fall off' your record. In many cases, it can remain there permanently, making it harder and often more expensive to find cover." Sobers added that there are no general rules dictating a time period after which a past issue becomes irrelevant, as insurers take different stances.
Consequences of dishonesty
Experts stressed that dishonesty can lead to fines, prosecution, or a criminal record for fraud. In serious cases, individuals may be added to the Insurance Fraud Register, an industry-wide database used by insurers. Currently, 21,241 people are listed on the register. Being on it can affect all future insurance applications and even harm a person's credit rating.
