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What To Do If You Can’t Get Car Insurance
Finding reliable car insurance can be frustrating for anyone. After the carrier who offered your best option for auto insurance denied your application, it can be hard to decide what to do next — but there’s still hope.
Car insurance companies want to insure people whom they think are low-risk. The factors that determine your risk can be improved over time. And some companies are more willing to insure riskier policyholders. If the first or second provider doesn’t work out, you still have plenty of options. Here’s what you can do to find coverage now.
Why some insurance companies deny applications
Car insurance providers favor people who the provider thinks are less likely to file a claim. To decide who these drivers are, car insurers factor in information like driving record, credit history, age, location and more.
You can affect some factors, but others are beyond your control. If your application was denied, the insurer might not tell you why. But you can always call and ask. Here are a few of the reasons why some car insurance companies commonly deny applicants:
- Driving record: If you have moving violations or at-fault accidents on your record, it will affect your car insurance cost. If you’ve experienced many violations or accidents, then some car insurers may deny your application.
- Location: Car insurers commonly draw on location-based crime statistics to determine risk in a policy. If you live in an area that experiences high levels of property crime, such as theft or vandalism, then the insurer may be less willing to insure your vehicle.
- Previous lapse in coverage: A red flag car insurers commonly look for is a lapse in coverage. If you’ve allowed your car insurance to expire in the past without getting a new policy, it could make it more difficult to find insurance.
- Credit history: Some car insurers may deny applicants who have a spotty credit history. The insurer could use this as an indication that you have trouble keeping up with monthly payments.
- Type of car: If you have a car model that’s known to be dangerous on the road, it could make car insurers wary. Some car insurers might stay away from insuring certain types of cars.
- Outside coverage area: Many car insurers only offer coverage in certain states or areas. If you live outside the insurer’s area of coverage, they won’t be able to provide you with insurance.
What to do if your car insurance application was denied
Having a car insurance application denied is never fun. But it’s not the end of the road. It’s always a good idea to ask why you were denied so you can get an idea of how to improve your profile for future applications. If you’re having trouble finding traditional auto insurance, here’s what to try next.
- High-risk car insurance: Some insurance providers offer policies specifically catered to high-risk drivers. If your preferred carrier won’t cover you, a high-risk provider might be able to help. Keep in mind these policies can be more expensive than standard policies.
- State-run high-risk insurance: Some states have insurance pools for drivers who can’t find insurance with a regular provider. For example, Maryland Auto Insurance is state-run insurance for Maryland drivers who can’t find coverage elsewhere.
- Family member’s insurance policy: If you can’t find insurance, a family member might be able to add you on to their existing insurance policy. Many providers only allow this if both people live at the same address. But some make exceptions for college students.
[ Read: The Simple Guide to Car Insurance ]
- Improve driving record: If you can stay accident- and moving-violation free for a year or more, it could improve your chances of qualifying for standard auto insurance.
- Improve credit score: If you can boost your personal credit by paying off debt and staying on top of your monthly payments, then it could also help you find auto insurance from a standard provider.
- Check again in six to 12 months: Companies often shift their guidelines, and your chances of getting approved could change in the future. After six months or a year apply again.
Where to get car insurance when standard companies won’t insure you
People often ask, “can car insurance companies deny coverage?” And unfortunately, they can. If the standard car insurance carriers are not doing the trick, there are high-risk insurers who can help. If you get approved for high-risk insurance, it will probably be more expensive than a standard policy. Here are a few places to try:
- State Farm: This well-known provider offers car insurance policies of all kinds, including policies for high-risk drivers. They also have many discounts available, which could offset the generally higher cost of coverage.
- The General: This provider has specialized policies just for high-risk drivers. If other companies deny you coverage, this company should be able to help. You can even get a quote through their website.
- Bristol West: This provider is run by Farmers Insurance, and Bristol West had dedicated policies just for drivers who’ve been denied by standard providers due to a driver’s higher risk.
- State-run insurance pool: If no private insurers will agree to give you coverage, check to see if your state offers an insurance pool for high-risk drivers. This is generally the last option to try.
How to get better deals on auto insurance
If your monthly insurance premium is high, there are many ways to offset the cost. Most car insurance providers offer discounts for a variety of things, and it’s always worth a phone call to see what you might qualify for.
[ Read: How to Switch Car Insurance Companies ]
A few of the most common discounts include a bundling discount for multiple policies such as combining car and home/renters insurance, a discount for setting up auto-pay, a loyalty discount for using the provider for a certain amount of time, and a paperless discount for having your policy and payment details emailed to you.
Another option is shopping around for a new car insurance provider. Getting quotes is now fast and easy using provider websites or a mobile app. Many of the larger car insurers have online quoting tools that you can use to get a quick estimate of how much your monthly premium will cost.
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