Most states in the country require drivers to have valid auto insurance to operate a car. But sometimes, getting car insurance is easier said than done. You might be trying to get auto insurance, but you keep running into obstacles along the way.
Generally, a car insurance company can deny you coverage for various reasons, including but not limited to a poor driving record, not having a valid driver’s license, or owning what they perceive to be a bad type of car. They might even decline to renew your existing policy for the same reasons.
So, what can you do if you can’t find auto insurance? Read on to find out everything you need to know.
What Might Stop You from Qualifying for Auto Insurance Coverage?
Car insurance companies are not crazy about risk. In most cases, they shy away from offering coverage to drivers they deem “high risk” since they are likely to file a claim. If you fall into this category of motorists, you might run into a huge problem when shopping for a car insurance policy.
But what might make you a high-risk driver? Generally, if you have a recent history of car accidents, a severe infraction such as DUI/DWI, or have accumulated a series of traffic tickets, you will be perceived to be a high-risk motorist.
In some cases, the reason you are denied auto insurance coverage can be less obvious or a combination of several factors.
For instance, a teenager considered a high-risk motorist may be denied a car insurance policy for having a single speeding ticket, while a 35-year-old may not be.
Some car insurance companies base your eligibility for auto coverage on your credit score. Therefore, if you have several unpaid bills, you might find it challenging to get proper auto coverage.
You may also be denied coverage if:
- Own a really fast or highly expensive car
- Have too many moving violations
- Live out of the insurer’s coverage area
How to Get Auto Insurance If You Have Been Denied Coverage
If you are having trouble securing auto insurance because you have been denied coverage, there are several things you can do.
First off, it is essential to understand why you were denied coverage in the first place so that you can take steps to improve your chances of being approved for a policy.
For example, if you were denied coverage because you have a poor driving record, you can take steps to improve your record, such as taking a defensive driving course.
If you are having trouble getting auto insurance because you own a car that is considered high risk, you might want to consider trading in your vehicle for a less risky model.
The other options include:
1. Go to Your State’s Assigned Risk Pool
The truth is that many states require motorists to carry insurance which becomes a significant issue if you can’t get one.
Luckily, the same states can assign motorists to specific insurance companies that are part of what is known as the “assigned risk pool.”
The only thing you need to remember is that the rates with these insurers can be quite high. You can always learn more about your state’s assigned risk pool by visiting your state’s auto insurance department.
2. Find Private Insurance that Offers High-Risk Insurance
If you have been denied coverage by a standard auto insurance company, you can try seeking out high-risk insurance from a private insurer.
These companies usually work with drivers whose driving records aren’t good at all. They also target drivers with high-performance cars that standard auto insurance companies may refuse to cover.
However, be prepared to pay sky-high premiums since these companies will still perceive you as being high risk.
3. Get Added to a Family Member’s Policy
You may add yourself to your family member’s policy. But before you do this, it is crucial that you and the individual who owns the car insurance policy trust each other since both of you will be responsible for each other’s driving.
If you or the primary policyholder is involved in an accident, both of your premiums will most likely rise.
Most car insurance companies will only allow you to share your auto insurance policy with someone you stay with or a direct family member.
For instance, you can add yourself to your parent’s car insurance policy if you are still in college.
4. Fix Your Credit Score
If you have been denied auto insurance because of your credit score, you can improve your chances of getting approved by working on your credit.
Pay all of your bills on time and make sure that you don’t have any collection accounts or late payments. You may also want to get a copy of your credit report and dispute any errors you find.
What Steps Can I Take to Become a Lower Risk for Insurers?
Having to resort to high-risk insurers or state risk pools eliminates your chances of getting the right insurance at the right price. You end up spending a lot more than what others are paying for the same coverage.
Luckily, there are many things you can do to clean your driving and financial records and stand a great chance of getting back into the good books of traditional car insurance companies.
Below are some of the things you can do to become a lower risk for insurers again:
- Never drink and drive
- Take a defensive driving course
- Buy a safer car
- Drive safely and obey traffic laws at all times
- Take appropriate precautions against theft and carjacking
- Work on improving your credit score
These steps may not help you in the short term but will go a long way in the long term. And as you become less of a risk for insurers, you will start getting better rates.
The Bottom Line
No one wants to think about being in an accident, but it’s important to know what to do if you’re uninsured and find yourself in that situation.
If you’ve been denied auto insurance coverage, there are still steps you can take to get the protection you need.
We hope this article has helped provide some information on how to get high-risk auto insurance.
