It’s not the end of the world if you are denied car insurance by a provider. What it does mean is that you have some work to do and improvements to make. The reasons why you may have been turned down for car insurance are your driving record or past car insurance history. At that point, you have been assessed as a high-risk driver due to the odds of you having to file a claim (which is something you really don’t want). Being a high-risk driver doesn’t bar you from driving, but you may find that car insurance is more expensive than average. The good news is that these rates aren’t permanent down the road. Here are remedies and situations that arise when you find yourself unable to get standard car insurance.
Why You Could be Denied Car Insurance
What exactly makes a driver or car uninsurable? Several factors go into the insurance policy underwriting process. The most common reasons why someone might be stuck with high-risk car insurance or be flat out denied it is:
- Several moving violations – Non Moving violations like parking tickets typically don’t affect your car insurance rates or your ability to get coverage. Moving violations like speeding, however, do. If they are regular habits or in big concentrations, the insurance provider may refuse coverage.
- Several at-fault accidents – Causing an accident and having to use your car insurance to cover the damages and injuries will affect your rates and your ability to get low ones. The goal of car insurance is truly not to use it. Too many claims can create a risky driver profile that not many insurance providers will be pleased with and want to take on.
- Too young to too old – Younger drivers just getting their license and older retired drivers usually have to pay the most for car insurance. Young drivers don’t have much of a driving record to go by and old drivers’ ability to operate a vehicle may be impaired.
- Poor credit score – Some car insurance companies look at prospective policyholders’ credit scores as an evaluation of their financial reliability, which car insurance is all regarding. If you can’t make the monthly payments that well, you may be charged more for coverage or denied it.
- Luxury or high-speed car – Some cars are just too much for some car insurance companies to take on. High-end cars are often expensive to insure due to either their speed capabilities or expensive parts. If such a car were to be damaged, additional car insurance other than just the standard might be required to fully insure it.
When You Can’t Even Get a Car Insurance Quote
You’ll know when you have been denied car insurance when you enter your information, but the quote doesn’t come through because you were denied it. You can also directly contact an agent from that provider to see if they will personally oversee a quoting process. They ultimately get the last day of whether or not you get a policy with them. Of course, there are always car insurance providers that specialize in high-risk car insurance.
Finding High-Risk Car Insurance
Top cheap car insurance providers often rarely have a place for higher-risk drivers. That’s where specialized providers come in. They also go by the name of nonstandard insurers. These providers do offer car insurance at a higher cost, but drivers will be able to drive it down in time through safe driving habits and working to become reliable drivers that don’t file claims a lot.
Lowering Car Insurance Costs For High-Risk Drivers
So, where do you go from here with your car insurance that costs above average? Well, the only thing left to do is get it back down to average. Here are some ways you can do that:
- Get added to family or household policy – The reason why a high-risk driver’s insurance would be so much is that it’s their own privacy policy. That’s why young drivers often are placed on their parents’ policy when they start out. While you make amends to your driving and insurance record, being on someone else’s policy is a wise move.
- Improve driving record – In short, running fewer red lights, going over the speed limits less, taking a defensive driving class, and avoiding filing claims will improve your driving record and history, which car insurance providers look at. You may find that discounts await down the road.
- Fix credit score – Show your financial credibility with good credit scores by paying your bills on time and settling any discrepancies.
- Take advantage of discounts – Car insurance companies offer several discounts on rates, including ones for safe driving, vehicle safety features, policy bundling, and defensive driving discounts that nearly everyone can qualify for. Always take advantage of these as they can help lower the cost of your high-risk car insurance.
