Are you rejected for Car Insurance purchase?
Car insurance companies will deny coverage of insurance for various reasons. These reasons will vary from assessment of drivers history to type of car which they own. Considering all these factors the insurance company may decide on the renewal of car insurance. Sometimes it may happen that the insurance policy may not be renewed for any of these reasons.
In the short term, if you are denied car insurance coverage the best option is to search for an alternative insurance provider. Some insurance companies deal with high-risk insurance options. However, in the long run, it is important to find out why insurance companies denied insurance coverage. It is wise to find out the reason and resolve the problem.
Reasons why your Auto Insurance application may be denied
Car insurance companies are expected to deny insurance to the insurance holders whom they believe are high-risk categories.
- Too many traffic violations - If the applicant had a bad history with a series of traffic penalties and accidental claims then these are indicators of high-risk drivers. These high-risk drivers may cause car accidents and they may come back to file the claim. Considering these factors insurance companies hesitate to issue car insurance. For instance, a teenager is considered a risky driver and if there is any speeding penalty in the past insurance policy may be denied. On the other hand, a thirty-year-old will not be denied car insurance for the same reason.
Insurance companies along with other factors also consider credit-based insurance scores. If there are any unpaid bills then it is not easy insurance.
Living out of ‘insurer’s coverage area’ - If you live in a place that is prone to natural calamities then the insurer may hesitate to cover such policies
Some insurers reject luxury vehicles or sports cars
If you have many ‘at-fault’ accident
If you are too old or too young to get insurance
If you own a fast car which is against the law
Car insurance companies may deny insurance coverage for any of the above reasons and also for any legal violations. Laws are different from country to country and also from jurisdiction to jurisdiction. Have good knowledge about the local government laws and regulations and maintain the standards as per their requirements.
If you are applying for car insurance online and the application is denied then you may not know the reason for the rejection of the application. To find out the exact reason you should contact the company directly and only then you may get to know the reason for rejection. Insurance agents also can provide you with the exact reason for the denial of insurance.
Rejected for Car Insurance?
If you are denied a car insurance quotation then apply for quotes from different insurance companies. Every insurance company analyzes and evaluates in a different way. One insurance company may provide you with a quote and the other may not.
By submitting your application with different insurers you get a good chance of getting an insurance application approved. By following this way it is easy to get an insurance quote. In the same way, you can also apply for insurance at different insurance agents at the same time.
- High-risk insurers
If you have checked with the low-cost car insurance companies, then you may find the other best option of following with the high-risk car insurance company. These high-risk insurers are also called non-standard insurers.
These companies specialise in offering insurance to drivers who are poor at driving. These companies charge more than the standard insurance companies. You can find the rates which are significantly higher than the normal insurers.
- Add to family member’s policy
There is a good chance of adding yourself to the other person’s policy. The other person is typically a family member or roommate. It is very important that you and the person with whom you got the insurance trust each other. You both are on the hook to one another’s driving. Suppose if you get into an accident then you and your co-owner of the policy should pay for the damages as agreed upon.
A few car insurance companies will provide the facility to share the insurance with someone like an immediate family member. Suppose if you are in college you can add your parents into the policy.
- Long term solution for rejected car insurance
You can minimise the risk and also the problem if you know about your car. There are many things that can be controlled in the long run for rejected car insurance. The aspects such as traffic violations, speeding penalties, pending challans or bills and others.
All these aspects may lead to rejecting your application for car insurance. If you resolve these issues related to your car then you can easily get car insurance. Once you address these issues, in the long run, it becomes easy for getting car insurance.
- Driving history
Some drivers find it difficult to get the best price car insurance quote because of bad driving history. It is advised to get the defensive driving course which will increase your driving confidence. Once you get this done, it will reduce the number of infractions on your license. You can improve your driving history and also maintain a good track record. If there are any serious violations then they cannot be removed. This option works well for those who are one time violators and have not repeated the same incidents.
- Improve your credit score
Some insurance companies check credit-based insurance scores and decide on the insurance. It is advised to improve your credit score. Pay the credit card dues on time, keep your loan payments on time, settle the disputes and minimise your credit card utilization by making the debt payment. However, it is a slow process to increase the credit score and it will improve over a period of time.
Conclusion
Car insurance eligibility can be affected by various reasons if you are rejected for a car insurance purchase then take a look at factors that are causing the rejection. Work on the aspects to make the insurer feel that you are a good driver. Insurance companies always want to ensure that they provide insurance to safe drivers. A safe and sensible car will not only get you insurance easily but also can save your money and life so avoid dangerous cars and use safe cars.