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Reasons Why a Car Insurance Company May Refuse to Insure You

a car insurance concept

Looking for auto insurance in Renton, WA? Been rejected by an insurance company? If so, you may be wondering why your application was rejected, especially since the insurer didn’t give you a clear reason as to why they couldn’t take you on as a client. Whether you got denied coverage or are about to file an application and want to ensure it will be successful, take a look at why a car insurance company may refuse to insure you.

 

Why a Car Insurance Company Could Deny Coverage

 

1. Too many claims

When you apply for car insurance, the insurer will take a look at your insurance record to see if you’ve had coverage before and for how long. On your record will also be your claims filings – if you have any. If an insurer sees that you file claims often, such as a few within the last five to seven years, then they could reject you on the grounds that you are likely to file multiple claims again.

An insurer will most likely reject you if you file multiple claims that are also at-fault accidents. If they see that you were at-fault for the majority of your claims, then it shows to them that you’re a high-risk driver that causes frequent accidents.

 

2. Multiple DUIs

Quite simply, if you’re a risky driver on your record, then it’s a gamble of whether or not an insurer will take you on as a policyholder. If they see you have multiple DUIs or other serious traffic offenses listed on your record, then they will flag you as a high-risk driver and not want to work with you.

You may be able to secure coverage easily if you only have one DUI listed, but it depends on the insurer. While some insurers will simply hike up the premium to accommodate the risk, others will decline you straight away. If the latter is the case, try looking for a higher risk car insurance company that deals specifically with high-risk drivers.

 

3. Poor credit

Your credit score matters more than you think. Insurers will look at your credit score and profile when assessing whether or not to offer you a policy. Your ‘credit-based insurance score’ is calculated slightly differently than your traditional credit score, but the two go hand-in-hand. In general, if you have bad credit then you will also have a bad credit-based insurance score.

While you can work on improving your credit in order to obtain a policy with a standard agency, you may have more luck taking out a policy with insurers willing to insure drivers with bad credit scores. When you do secure a policy, continue to improve your credit score to land those cheaper premiums.

 

How to buy car insurance after being denied

If your request for car insurance has been denied, don’t give up yet. You may have to work with a costlier car insurance company that specializes in high-risk drivers. Fortunately, there are many across the nation that do this. Work with your insurance agent to not only get car insurance, but to improve your driving record and credit score so that your auto insurance applications have a better chance of being approved in the future.

Were you aware of these common reasons why a car insurance application could be denied? Now you know, you can ensure your insurance profile is up to scratch when you apply for coverage.

Auto insurance can be there for you when you need it the most. Work with an agent who has your best interests in mind. When you’re looking for reliable and affordable car insurance coverage, talk to the team at Humble & Davenport Insurance.