By June 27, 2007 1 Comments Read More →

Car insurance denials

Reader question:

Why would a company deny me auto insurance?

Rick

There are lots of reasons why this might happen, Rick.

Many things can effect your ability to have easy access to car insurance, and some of them you just can’t control. One of the main reasons is that you don’t have a very good history keeping with your auto insurance companies in the past. This could mean that you made irregular payments, changed companies often, have significant gaps in your insurance history during which you were uninsured, or had your policy canceled for nonpayment or for misrepresenting itself. Any of those things can make it harder to get insurance in the future, which is why it’s important to keep up with your insurance payments and be honest when getting a policy.

Another reason could be your driving record. Insurance companies are less likely to want to insure someone who has a history of accidents and thus of insurance claims, especially if they were the at-fault driver in these accidents. Moving violations such as speeding throw up a red light to the companies, and driving while intoxicated violations are the worst.

One more thing that might affect your coverage is the kind of car you have. If you have a really flashy car with lots of add ons, like expensive rims and a very expensive sound system, then an insurance company might be nervous about giving you coverage because it could cost just too much.

If, for any of these reasons, you find yourself unable to get insurance, don’t worry, because it is still possible to be gotten. There are special insurance companies that take high risk drivers such as those with bad records or with very specialized vehicles, and while they may offer you higher rates than other companies, you can still be positive that you and your vehicle is protected by car insurance. Before you look into one of these companies, though, shop around. Click the link above and exhaust all of your options before going with a high-risk insurance company.

Cheers,

Fashun Guadarrama.

Posted in: Auto Insurance

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  • Rich

    The best thing to do is not to lie to your car insurance company :)