Auto insurance is a very competitive business. Insurance companies are constantly trying to attract new customers. So, it may surprise you if you move on a quote from an auto insurance company only to have them deny you coverage.
What are the reasons for being refused car insurance? Does this mean you are uninsurable? And is there such a thing as car insurance for the uninsurable?
Let’s learn more about the issues around a car insurance denial.
Why a Car Insurance Company Denies Coverage
There are a few reasons that a car insurance company won’t want to insure a particular driver and vehicle. The reasons are all come down to risk at their heart. You will be denied coverage if the insurance company believes you and/or the vehicle you want to insure is too risky for them.
Here are some common reasons for denial:
- Multiple DUIs
Most of the well-known auto insurance companies will deny coverage to those who have multiple DUI convictions. The risk is just too great. This will force you to work with carriers that focus on high-risk policies, at a premium of course.
- Multiple Serious Traffic Violations
While the bar may be higher for multiple serious traffic violations, like multiple DUIs, this type of record will more than likely have you denied and push you to companies that specialize in high-risk policies.
- Multiple At-Fault Accidents
When you are found to be at-fault, your insurance company has to do the paying out while any other drivers and companies involved do not. If this happens a few times, you’ll likely find your insurance company doesn’t want to insure you anymore.
- History of Insurance Violations
Insurance violations range from missed payments, to lapsed coverage, to actual fraud. A history of any of these violations could mean you face denial of coverage.
- Certain Vehicle Types
Some high-performance vehicles and classic cars simply don’t fit the formula used by major car insurance companies to determine premiums. You may be forced to go to a specialized insurance marketplace for this type of coverage.
How To Fix the Problem
If you’ve been denied a car insurance policy, there are ways to fix the problem.
- Improve Your Record
If your denial is due to factors in your control, such as violations and accidents, the best thing you can do is improve your own record. Take a driving class if you need to. And, start now to avoid further violations and incidents.
- Pay Your Fines
If you have outstanding fines that put your driving record and ability in jeopardy, pay them off. Or, find a work around with your state or insurance company to get you even again.
- Shop Around
If you are denied coverage and forced to the high-risk market, the best thing you can do is shop around to compare rates.
Being denied coverage doesn’t mean you cannot be insured; it just means you will have to work harder and probably pay more for coverage.
InsuranceWins can help you navigate the world of insurance coverage. Simply enter your information into the InsuranceWins form and you’ll receive free quotes from multiple companies. Compare quotes to find coverage that suits you at a price you can afford.
