There are several reasons why car insurance companies may choose to deny you coverage, starting from the car you own to your driving record. They may also decide not to renew your existing auto insurance for the same reasons. It’s not the end of the world if you have been denied auto coverage, and the best choice you have is to find an alternative insurance company that offers high-risk or non-standard insurance policies. However, if you want a long-term solution, the best way to deal with this situation is to understand why the insurance company has denied you coverage and then work to fix that problem.
In general, car insurance companies will deny auto coverage to people they believe are more likely to file an insurance claim. If the applicant has a history of accidents or serious infractions like a DUI, they are likely to get their auto coverage denied. These are strong indicators that you’re a risky driver who may file a claim and cause a serious accident.
There can be less obvious reasons for why you’re denied coverage, which could be due to a combination of reasons. For instance, teenagers are generally considered high-risk drivers, and if they have a speeding ticket, they could be denied coverage, which won’t be the case for an adult in his thirties. Most insurance companies will base your eligibility on your credit-based insurance score (CBI), and if you haven’t paid your bills, you will find it difficult to find auto coverage for your vehicle.
Here are some of the most common reasons why drivers are denied auto coverage from car insurance companies. If you have any of these infractions on your driving record, it won’t be easy to qualify for auto insurance from any car insurance company. These include:
- You have several moving violations
- You have a lot of at-fault accidents
- You are too young or too old
- Your credit-based insurance score is poor
- You own an expensive or supercar
- You live out of the coverage area of the insurance company
Car insurance companies may choose to deny you coverage for any reason they like, except those forbidden explicitly by the law. However, the laws tend to differ from one state to the next. For instance, insurance companies in Montana aren’t allowed to use your gender when making insurance decisions. In general, the laws are related to high rates and won’t deny you coverage, but you should still confirm if the reason your auto coverage was rejected due to a law violation.
You won’t be told why your car insurance application was denied by the car insurance company, especially if you are filling out the application online. In that case, you will need to speak with the insurance agent and contact the company directly to figure out what happened.
What to do When You’re Denied Auto Coverage?
If an insurance company denies auto coverage for you, it’s best to apply for quotes from other insurance companies in the market. Car insurance providers tend to evaluate applications in different ways, and if one has denied you coverage, it doesn’t mean another company will do the same thing. You can also work with a car insurance agent to improve your chances of getting coverage since they can walk you through the process and submit your claim to several insurance companies at the same time.
· High-Risk Insurers
If you have checked with several low-cost car insurance providers in your area, your best bet would be to go with a high-risk insurance provider, also known as non-standard insurers. These companies are specialists in offering insurance to drivers who have poor driving records. The only downside here is that non-standard insurers will charge you more money than standard car insurance companies. Therefore, you must keep that in mind when getting an auto insurance policy from them.
· Add Yourself to the Policy of a Family Member
You can also add yourself to the auto insurance policy of a family member or a close friend. However, you should only choose this option if you completely trust the other individual because both of you will suffer the consequences of the driving records of one another. If the policy owner gets into an accident, you will need to pay more for the policy.
Most car insurance companies will only let you share your auto insurance policy with a person living with you or a direct family member who isn’t living with you. For instance, if you’re in college, you can add yourself to the auto insurance policy of your mom or dad.
Steps to Take to Ensure You’re Never Denied Auto Coverage
It sucks when you’re denied auto coverage for whatever reason. If you don’t want to rely on the generosity of others or pay more for high-risk insurance policies, you should take steps to ensure you’re never denied auto coverage. Having a clean driving record can make a big difference and improves your chances of obtaining auto insurance from a traditional car insurance company. Here are some other steps you can take to ensure you’re never denied auto coverage:
- Enroll in a defensive driving course and learn how to avoid accidents
- Diligently obey all traffic laws and drive safely
- Never drive when you’re drunk or under the influence of a drug
- Work on ways to repair your credit rating and score
- Purchase a safer car that has good safety ratings
- Take precautions against car-jacking and theft
When you take steps to show insurance companies that you’re a good candidate for an auto insurance policy, it doesn’t give them any reason to deny you auto coverage. It is better to be safe than sorry, but you shouldn’t lose hope if you are denied auto coverage, as there are several auto insurance companies, and you can find one that offers you a policy.