Can I be denied auto insurance?
Auto insurance companies may deny you coverage if your driving record is spotty. Compare quotes from carriers who write high-risk policies to cover you.
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Written by
Rachel Bodine
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Reviewed by
Daniel Walker
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UPDATED: Apr 29, 2022
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- 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.
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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!