Auto insurance can be invaluable in protecting yourself, others, and your vehicle. However, finding the right auto insurance can become complicated for a variety of reasons. In some situations, an agency might deny you coverage under their policy. Below, we take an in-depth look at why car insurance agencies may deny coverage.
Why Would My Auto Insurer Deny Me Coverage?
Auto insurance agencies may decline to offer you coverage for multiple reasons. As you search for car insurance near me in the aftermath, start by figuring out why an auto insurance agency would deny you coverage and look for ways to solve the problem.
Before you start to search for car insurance near you, first determine reasons why an auto insurance agency would deny you coverage. Then you can begin to address those reasons and avoid being denied.
Generally, auto insurance agencies will deny coverage if they believe that you are likely to file a claim. Other red flags to an insurer include:
● Too many accidents,
● Traffic tickets or an arrest for DUI
These are all signals to auto insurance agencies that you are a risky driver. You may also be denied coverage
● Due to your age
● A low credit-based insurance score
● If you have an expensive luxury vehicle that will be difficult to insure
There are some instances where the law makes it forbidden to deny coverage. For example, in some states, it is illegal to deny coverage based on your gender. If you are denied, contact the agency directly to find out the exact cause.
What Can I Do If I Am Denied Auto Insurance Coverage?
If you are denied coverage for being considered a high-risk driver, research quotes from multiple insurers. Every insurance company has their own standards for evaluating applications. Ask your insurance agent to submit your application to multiple companies. Don’t neglect nonstandard insurers. These companies provide coverage to high risk drivers. The only issue is that you’ll have to pay significantly higher rates than you would for a traditional policy.
You also have the option to add yourself to a close friend or family member’s policy. Remember that you will both be responsible for each other’s driving. If someone is involved in an accident, you’ll both have to pay higher rates.
Tips to Prevent Being Rejected for Auto Insurance Coverage
Here are some ways to prevent being rejected for auto insurance coverage.
Improve Your Driving
If you have multiple driving violations on your record, that can prevent you from finding a good quote. Consider taking a defensive driving course. Taking the course can help reduce the points on your license and possibly help you qualify for a discount on your insurance. You can also look into having an older ticket removed from your record. That can make it easier to find a quote. However, you may be stuck if you have multiple driving violations on your record.
Change Your Habits
Consider changing some of your habits. Perhaps you’ll have to switch to a less flashy but more efficient car that can help you save money on your auto insurance. If you are planning to more, look up quotes under your new address so that you’ll have a reference point.
Improve Your Credit Score
If you have poor credit, the chances of finding a good car insurance policy are tough. Many agencies look at credit-based insurance scores to establish a rate. You can improve your score by paying your bills on time and minimizing debt. Be sure to challenge any errors on your credit report. Repairing your credit takes a lot of work, but the long-term rewards are significant.
Look for Discounts
Every six months, check with different companies to see if they have changed their policies. As time passes, your previous incident becomes less of a deciding factor. You may find lower quotes within two years.
If a car insurance agency has denied you coverage, don’t panic. Take some time to figure out your next steps, such as resolving any unpaid parking tickets and paying your bills on time. The experts here at 01 Insurance will assist you if you have any questions about your auto insurance coverage. Contact us today!