Can you be denied auto insurance?

If you search for car insurance but keep getting denied, this could be happening for several reasons. People who can’t get insurance with one or more companies may have poor driving histories, bad credit, or a vehicle that’s more of a risk to cover.

Once you are unable to get insurance with one insurance company, shop online and compare quotes and coverage options with other providers. You may find that most insurance companies will offer you coverage.

Still, if finding car insurance with a standard insurance company becomes impossible, you may need to turn to a high-risk or nonstandard car insurance provider for help.

High-risk car insurance companies may be fairly common in your area. If so, you should research the cheapest auto insurance companies for high-risk drivers near you. High-risk car insurance will probably be more expensive than an auto insurance policy with a standard insurance company.

What happens if I was denied car insurance coverage?

Car insurance companies reserve the right to deny anyone coverage. So if you were denied insurance but still need coverage to drive, you would have to find an insurance company that will help.

If you were denied by one insurance company, that might have been an isolated incident. Research other companies online and get a quote to see if you can get coverage and how much it will cost.

If you cannot get auto insurance with any of the standard insurance companies in your area, it’s time to search specifically for a nonstandard policy.

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Can you be denied car insurance?

Car insurance companies can refuse to cover individuals for a variety of reasons. For example, companies are more likely to deny coverage if you’re considered more likely to file a claim.

Many auto insurance companies deny coverage if a person has a poor driving record. This may include:

• Multiple traffic tickets or violations
• Speeding tickets
• One or more at-fault accidents
• A DUI or DWI
• A lapse in coverage

Having negative items on your driving record indicates that you may be more of a risk in terms of car insurance coverage. Still, some insurance companies may deny coverage for less obvious reasons.

Some companies are wary of insuring teen drivers or drivers over 70. Other insurance companies may deny coverage if you have a poor credit score or are too young to have a credit score. Additionally, many companies may deny coverage if you have a vehicle that’s a risk to insure. Learn more about auto insurance companies for people with bad credit.

Can car insurance companies deny coverage based on gender?

State law dictates whether car insurance companies can deny a person coverage based on gender, marital status, and credit score. In some states, it is perfectly legal for a car insurance company to refuse to cover a person because their credit is too low, while in other states, that is not allowed.

For example, car insurance companies in Montana cannot deny a person coverage or create an individual’s insurance rates based on gender. In other states, however, gender can be used as a factor when determining a person’s eligibility and rates. Learn more about Montana state laws and how to find cheap car insurance in Montana. 

Car insurance companies may not inform you why your application for coverage was denied. If you are unsure why you were denied coverage, you can contact a representative from the company you applied with and ask for more specific information. 

What should I do if I can’t get a car insurance quote?

If you cannot get a quote from one insurance company, you should attempt to obtain quotes for auto insurance from other companies in your area. Each insurance company evaluates factors differently, so you may find that one company is willing to offer coverage while another is not.

You can contact an insurance agent to help if you continue getting denied. Insurance agents may have a better understanding of companies that will cover you based on your unique situation and needs.

What happens if you can’t get car insurance?

If you attempt to get car insurance and are denied, there are a few things you can do to try and find coverage in your area.

Shop Online

Find and compare the best car insurance quotes from several companies online. If one insurance company is unwilling to offer you coverage, shop for coverage with other providers.

Companies consider different factors when determining a person’s car insurance rates and whether they’re eligible for coverage. Shopping online and comparing options is a good way to determine which companies will offer the coverage you need at a price that works with your budget and meets your needs.

Search for A High-Risk Car Insurance Company

If you’re considered a high-risk driver, you may need coverage with a company specializing in nonstandard or high-risk car insurance coverage.

Some of the things that might make you a high-risk driver include:

• Being a teenager or young adult driver
• Having little to no experience behind the wheel
• Multiple traffic violations
• One or more at-fault accidents
• A DUI or DWI
• A reckless driving conviction
• Poor credit
• A lapse in car insurance coverage

Some companies, like Geico and State Farm, offer coverage to high-risk drivers in certain instances. You can shop online and compare quotes from companies that offer coverage to high-risk drivers to see if one company might work for you. 

Major insurance companies may not provide coverage to high-risk drivers, but their subsidiaries do. If this is the case, you might find information online to help you determine which companies or their subsidiaries can insure your vehicle. Find the best auto insurance companies for high-risk drivers. 

Consider State Assistance

If no car insurance company offers you coverage, you may be eligible for coverage with your state.

State car insurance coverage typically comes through a state-assigned risk pool. You’ll need to be denied by a certain number of private auto insurance companies before you’re eligible for state coverage. 

With state-assigned coverage, your rates will likely be significantly higher than if you found coverage through a private insurance company. Still, this coverage would allow you to drive your vehicle in your state legally. 

Change Your High-Risk Status

Companies that see you as less of a risk will offer you proper auto insurance coverage at a reasonable price. 

As a high-risk driver, the best thing you can do is improve your status to purchase standard auto insurance coverage eventually. Take a safe or defensive driving course, enroll in a usage-based car insurance program, and keep your driving record clean.

Over time, you’ll find that insurance companies are willing to offer you more competitive rates for car insurance coverage. 

Jump on Someone Else’s Policy

If you’re a teen driver or you live in the home with someone who has a car insurance policy, you may be able to jump on that individual’s policy for coverage.

Different companies have different requirements for being added to someone else’s policy. Still, it’s a great way to get coverage without having to pay expensive car insurance rates with a high-risk insurance company.

Improve Your Credit Score

In most states, your credit is a factor that affects your car insurance rates. If you were denied auto insurance coverage because of your credit score, you could improve your score to get coverage with car insurance companies in the future.

To improve your credit score:

• Pay off loans and credit cards as much as you can.
• Use 30% or less of your total credit limit. 
• Don’t open a lot of credit cards or accounts in a specific amount of time.
• Check your credit report to ensure it is accurate.

It can take a while to improve your credit. Still, as you do, you’ll notice you have more options for car insurance, and your rates should be more affordable.

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How can I avoid getting denied?

Keeping a clean driving record is the best way to avoid getting denied car insurance coverage. If you are in an accident or have a violation, report it to your current auto insurance company. Doing so will let your insurance company know you’re willing to be forthright and honest about your driving record.

If you’re in a car accident — even if you do not plan to file a claim — alert your insurance company so that there are no surprises in the future. 

Alert your insurance company if you change addresses, get married, or have any other change in your circumstances. For example, changing addresses could help you become less risky if you move to a home with a garage or lower crime rates and less traffic. 

Keep your credit score up so insurance companies do not see you as a risk, and avoid filing claims for small incidents if you can.

What To Do When You’re Denied Car Insurance: The Bottom Line

If a car insurance company denies you coverage, you should continue shopping online and comparing quotes from several insurance companies. However, don’t get discouraged if you’re denied by one company, as insurance companies consider different factors when determining whether you’re eligible for coverage.

As you shop for quotes online, consider going with a high-risk car insurance company if you notice other providers are unwilling to insure you. In addition, you can speak with an insurance agent if you need help finding nonstandard car insurance providers in your area.

Once you find coverage, work to improve your driving history and credit to avoid a high-risk status in the future. Insurance companies will offer you coverage and see you as less of a risk if you keep your driving record clean and pay off your debts.

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