Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 20, 2020

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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to remember...

  • Car insurance companies can decline to give you an auto insurance policy
  • The car insurance company should provide a reason for the denial
  • You can use a comparison tool to find a policy with an insurance carrier that is willing to insure you

Since car insurance is required to drive legally, you must be able to purchase an insurance policy.

However, individual insurance companies can refuse to provide you with coverage.

If you’ve tried to get a claim with one or more insurance companies and you’ve been denied the ability to purchase the insurance, you can use a car insurance company to find an insurance carrier that will cover you.

Start comparison shopping today for the best auto insurance rates by entering your ZIP code above!

Table of Contents

Reasons Auto Insurance Carriers Can Refuse to Insure You

Individual insurance carriers are not obligated to insure you just because you have the right to purchase an insurance policy.

In fact, having an active insurance policy with a carrier does not guarantee you the right to purchase another policy with that same carrier.

Car insurance carriers have the option to refuse to renew your policy if they give you the required amount of notice before your policy expires.

The reasons for non-renewal vary greatly from you had too many late payments to the insurance company is no longer offering that specific policy.

History of Not Paying or Lapse in Coverage

If you have a history of forgetting to pay your car insurance, the car insurance company may refuse to insure you.

In some instances, you might be able to mitigate this by paying the entire premium up-front.

Suspended Driver’s License

https://www.youtube.com/watch?v=4954yzQHCoU

Having a suspended driver’s license means that you are not legally allowed to drive. A suspended license would also put you in the high-risk driver category.

Some insurance companies simply cannot write policies for high-risk drivers or drivers with suspended licenses.

Too Many Points on Your License

Having a lot of points on your license means that you have gotten several driving infractions.

Many infractions could push you into the high-risk driver pool, and you would need to find a car insurance company that writes high-risk policies.

You Lied on Your Application

If you lie on your application, the car insurance company can refuse to issue you a claim.

Previously Committed Insurance Fraud

If you have previously committed insurance fraud, insurance companies can refuse to issue you a policy.

History of Filing Lots of Claims

If you file an above average number of claims, insurance companies can refuse to insure you due to a presumed increase in cost to the insurance company.

If you find yourself in any of these scenarios, you can look for a new insurance policy by using a comparison tool.

Just make sure you fill each question out honestly before you submit. Being honest will give you the most accurate quotes and help prevent an insurance company from denying you due to inaccurate information on your application.

Free Auto Insurance Comparison

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Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

What You Can Do After Being Denied

In most states, you can apply for insurance coverage via the state if you receive multiple car insurance policy rejections.

Various states, like Massachusetts and Michigan, also offer insurance guides that explain drivers’ rights when it comes to purchasing car insurance.

In addition to working with your state, you can also use a comparison tool to find an affordable policy with an insurance carrier that can cover you.

High-Risk Insurance Policies

If you find that you have been put into the high-risk category, you will need to find a car insurance company that can write high-risk auto insurance policies.

High-risk policies generally cost more than a standard insurance policy because the drivers in the pool, including yourself, are deemed more of a risk for getting into an auto accident and filing a claim.

To help mitigate some of the cost of being a high-risk driver, you should take advantage of an auto insurance comparison tool.

These online tools are designed to take your information and car insurance preferences and return results for multiple policies with several different insurance carriers. These results will allow you to review the policies and the prices.

Start comparison shopping today by using our FREE online quote tool! Enter your zip code below to find the best auto insurance rates!

References:

  1. http://www.investopedia.com/ask/answers/12/can-insurance-company-refuse-coverage.asp
  2. https://www.thebalance.com/can-the-insurer-refuse-to-renew-my-policy-462527
  3. http://www.mass.gov/ocabr/insurance/vehicle/auto-insurance/massachusetts-consumer-bill-of-rights-for.html
  4. https://www.michigan.gov/documents/cis_ofis_ip204_25085_7.pdf
  5. http://money.usnews.com/money/personal-finance/articles/2013/10/04/decoding-the-mysteries-of-high-risk-car-insurance