Searching for auto insurance can be complicated at times. There are multiple variables to consider. In some cases, insurers may decline to offer you coverage based on their assessment. Some of the common reasons insurers deny coverage are recent accidents, multiple traffic tickets, or an arrest for driving under the influence. Any serious infractions on your driving record are a sign to insurance companies that you are a high-risk driver.
In some cases, you may be denied coverage because you have bad credit. Remember that insurance companies have the ability to deny you coverage for multiple reasons as long as they abide by the law. You are welcome to contact the company to get clarification on why your insurance application was denied. If that doesn’t work, you can take other steps.
Here’s a guide to help you figure out the next steps if you were denied coverage.
Consult with a High-Risk Insurance Company
Keep in mind that every insurance company evaluates applications using their unique guidelines. It’s recommended that you research quotes from multiple carriers. Consider obtaining car insurance coverage from a non-standard insurer. These companies offer coverage to high-risk drivers. However, non-standard insurers charge higher rates than standard carriers, so your finances may be tightened.
Seeking Help from Loved Ones
Another option to consider is adding yourself to your loved one’s policy. Keep in mind, though, that you will both be responsible for each other’s driving. One accident may cause both premiums to rise. In most cases, you are only eligible to add yourself to someone’s policy if you both live together.
Improving Your Credit Score
If insurance companies deny you car insurance coverage because you have poor credit, you can take a few steps to address this. Credit-based insurance scores are often used to establish insurance rates. They are calculated using different metrics compared to regular credit scores. However, the principles remain the same: pay your bills on time, monitor your credit report, and try to avoid debt. Improving your credit will make it easier for you to obtain car insurance and a future loan.
Practicing Safe Driving
If you have multiple violations on your driving record, it is recommended that you take a defensive driving course. Completing the course will help reduce the violations on your license and help you qualify for a discount on your auto insurance. You can also inquire about having an older speeding ticket removed from your record. However, removing tickets may be complicated if you have serious violations on your driving record. In most states, drivers are only eligible to have a ticket expunged from their driving record if they made a one-time error in judgment.
Things to Consider
In rare cases, auto insurance companies may deny you coverage based on your vehicle type. If you have a high-end fast car, insurers may think hard about offering you coverage because there is a strong likelihood that you will be involved in a collision at some point. Replacing those parts may be complicated, and insurers may decide that you aren’t worth the risk. While you may opt for short-term coverage now, it’s recommended that you check with other carriers every year to see if they have modified their rates or if they are offering new discounts that you may qualify for.
Consult with Young Insurance
While being denied auto insurance is not a good feeling, there are some alternatives you can consider. You can opt for coverage through a non-standard insurer or ask your loved ones for help. If you have more questions regarding your auto insurance coverage, contact us today. The insurance professionals here at Young Insurance will answer any questions you may have.