High Risk Auto Insurance and Why Drivers are Denied Coverage

April 29, 2016

Though it may not occur to most people, you can be denied coverage by your auto insurance company. There are a number of reasons why a car insurance company might wish to decline selling you what they consider a high risk auto insurance policy. We’ve come up with a short list of the most common reasons that consumers are denied a car insurance policy. To learn what to do if your insurance company has denied your insurance claim, see our article about How to Appeal a Denied Insurance Claim.

Reasons Why a Driver Can Be Denied Coverage

  • You provided false information on your application for a car insurance policy
  • You were arrested for a DUI or DWI
  • Your driving record contains too many accidents, claims, and/or traffic violations
  • You missed too many premium payments
  • You submitted a fraudulent claim

Why High-Risk Drivers Could be Denied Insurance Coverage

Being a high-risk driver is the most common reason for being denied coverage. Usually it’s a combination of a couple of traffic violations, an accident or two, and/or a major driving offense such as a DUI/ DWI or a hit-and-run. The items in this list indicate to the insurance company that you are a high risk driver and that granting you an insurance policy could end up costing them money. If you have a few accidents or traffic violations on your record, it may be a good idea to take a driving class which in some states can improve the balance of points on your license in addition to showing the insurance companies that you are making an effort to be a safer driver.

What to do When You are Denied Car Insurance for Late Payments or False Information

Once you are red-flagged with one of these two offenses, it will be hard for you to find low premium car insurance. Your best bet is to look for non-standard car insurance companies who specialize in working with drivers who have backgrounds similar to yours. Most importantly, be honest when discussing why you were denied insurance. Lying about it will only waste your time as car insurance companies do an exceptional job of researching their customers.

Buying auto insurance can be a confusing and disoriented process. We want to make sure that our users can make informed choices about their car insurance, selecting from as many options as possible. Read our Auto Insurance Buying Guide to educate yourself before you start a quote.

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