High Risk Auto Insurance and Why Drivers are Denied Coverage

high risk auto insuranceThough 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.

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 Can 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, consider taking a driving class. In some states, driving classes 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.

Where to Get a High Risk Auto Insurance Policy

Once you are red-flagged with one of these two offenses, it will be harder for you to find low premium car insurance. However, just because it’s more difficult doesn’t mean it’s impossible. Your best bet is to look for non-standard car insurance companies. There are insurance companies that specialize in SR-22 insurance. 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. To find the best high risk auto insurance, compare car insurance quotes. We work both standard insurance companies you’ll recognize, plus companies that specialize in working with high-risk drivers.

Buying auto insurance can be a confusing and disoriented process. Learn what to do if your insurance company has denied your insurance claim, see our article about How to Appeal a Denied Insurance Claim.

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