What To Do If An Auto Insurance Company Denies Coverage

With the exception of New Hampshire, car insurance (or its state-approved equivalent)is required by law in every state and the District of Columbia. Without coverage you risk major repercussions, including jail and steep fines.

This requirement becomes especially troublesome if, for whatever reason, you're denied coverage by an auto insurance company. If this happens to you, don't fret. You still have other options for compliance.

 

Possible Reasons for Denied Auto Insurance Coverage

The reasons behind being denied car insurance usually involve:

• Missed premium payments.

• Fraudulent information on a car insurance application.

• Submitting a fraudulent accident insurance claim.

• Arrest for DUI or DWI.

• Owning a lengthy driving record checkered with numerous traffic violations and/or car accidents. Car insurance companies aren't fond of high risk drivers. Not only are these drivers a high risk to themselves, but also to the insurance companies.

 

Denied Car Insurance for Being High Risk

If you're denied car insurance for being a high risk driver, you may want to take some steps to improve your standing with car insurance companies. Two of the most effective ways are:

• Completing a safety driving course. This will convey responsibility and that you're serious about amending your bad driving habits. And, depending on your state, enrollment may even remove a violation or two from your driving record.

• Downgrading to driving a less flashier car and that's equipped with plenty of safety features.

You'll then want to get on the phone and begin calling car insurance companies. Don't limit yourself. Call as many as you have time for. The more you call the better your chances of not only finding a company that will insure you, but also in finding one with comparatively lower rates.

Be prepared to pay, however. Your high risk label may take several years to amend. Or at least until you've gained the insurance company's trust.

For cases such as a DUI or if you were involved in an accident while not carrying insurance, you will in all probability be required by your state, to buy an SR-22 policy. Depending on your state this can be anywhere from three to five years.

 

Denied Car Insurance for Missed Payments or False Information

Regardless of the reason for being dropped, you will be red-flagged as a high risk driver. Consequently, you will face higher insurance rates. Fortunately, however, it should not be too difficult to find a provider. All it will take on your behalf is calling different insurance companies and requesting quotes.

Don't try to hide the fact you were denied coverage. Be honest. Insurance companies are very good at research and uncovering the truth and, if you're honest with them, you might not be denied; you might just face a high insurance premium.