What if I can’t find auto coverage? | III

Why you might be denied traditional coverage

Having car insurance is necessary in club to legally drive a car in the United States. But you might find it unmanageable to get a policy through traditional secret insurance companies if you are a high risk to them because :

  • You have a poor driving record – A history of collisions, traffic violations or DUI/DWI convictions make it difficult—and extremely expensive—to get insurance.
  • You have not driven long enough – It’s harder to insure teenage drivers because of their inexperience behind the wheel, (and their greater tendency toward unsafe behaviors associated with youth).
  • You have no insurance record or a bad insurance record – If you haven’t owned your car very long, you’re an unknown risk. A history of insurance violations or lapses for non-payment will also make you a poor risk.
  • You have a bad credit rating – Many insurers use credit information as a predictor of risk, as people who do not effectively manage their credit tend to make more claims.
  • You live in an area where theft and vandalism losses are high – The increased possibility of body damage, of stolen car parts—or of an entire stolen car—can make insurers turn you away.
  • You own a special or high performance car – Custom or classic vehicles have their own insurance needs.

Options if you’re denied insurance

If you ‘re deny policy, the first footstep is to call another insurer—different companies have different parameters. however, if several insurers have denied you, you may need to consider these options :

  • Join a state assigned risk pool – Auto insurers participate on a voluntary basis in state assigned risk pools. Each insurer must accept the motorists assigned to it by the state.

While risk pool premiums are well higher than indemnity obtained directly with a individual caller, they do provide car coverage no topic what the driver ‘s history. To find the put risk pool or the equivalent in your state, ask your indemnity professional or the state insurance department .

  • Get a policy from a private insurance company that specializes in “high-risk” drivers –These insurers write “non-standard” policies for people with bad accident records, high-performance cars, or who live in high-risk neighborhoods. They also may be able to sell you more comprehensive coverage than is available through assigned risk pools.

To get a number of companies that sell non-standard car insurance, contact your insurance master, your submit insurance department or Roughnotes, a company that serves the independent insurance agent market and can refer you to the allow brokers.

Take steps to become a lower risk for insurers

Having to resort to state risk pools or non-standard policy reduces your choices and is more expensive. But the longer your clean drive and fiscal records, the better your luck to get back in the good graces of a traditional indemnity company. To help :

Additional resources


Next steps: Has your insurance company dropped you ? Understand the dispute between policy cancellation and non-renewal and how it affects your indemnity .

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