Can a Car Insurance Company Refuse to Insure You?

Can a Car Insurance Company Refuse to Insure You?

Some people might believe every car insurance company is standing by to take their money, but this idea is a myth. Insurance companies aim to attract low-risk drivers who are less likely to cause an accident. Here are essential reasons why a car insurance agency may refuse to insure you.

Common Reasons for Denial

Your driving record plays an important role in whether or not your insurance application will get approved. The worst-case scenario is having multiple DUIs or DWIs that resulted in accidents. Insurers do not want to cover individuals with a history of multiple costly dangerous incidents. DUIs are frowned upon because they account for some of the most serious traffic collisions.

Other reasons why a car insurance company may refuse to insure you include racking up a series of traffic violations and having bad credit. If you are regularly caught speeding, you appear to be a high-risk driver to the insurance agency. Poor credit is a sign of not being able to pay bills on time. The insurer wants to limit customers who have a history of late insurance payments as well.

A less common reason for getting denied auto insurance is if you own a high-performance or classic vehicle. The more unique the car is, the more problematic insurance will be. Repairing or replacing a rare model or sports car with extras can run up extensive costs.

How to Resolve Insurance Denial

Even if every major car insurance company refuses to insure you, there are still options to pursue to ensure coverage. Some insurance firms specialize in providing plans for high-risk drivers. You’ll probably pay higher rates, but at least you’ll be covered.

Various reasons exist why car insurance companies may refuse to insure certain individuals, but they mostly relate to risk. Maintaining a clean driving record and good credit are keys to making the approval process easy. If you need more-in-depth information on insurance, contact the experts at Steve Wilk Insurance today. You may also visit our office at 310 S Main Street, Suite C, Lombard, IL 60148.