Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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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. 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.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

  • All drivers need to have car insurance even if no standard car insurer will offer you coverage
  • Insurers have the right to refuse to provide coverage after accessing the risk factors and finding them unfavorable
  • High-risk drivers can still get a policy, although the premium rates will be higher than the standard rates
  • State automobile insurance programs assist most high-risk drivers in getting favorable car insurance plans
  • High-risk drivers have a chance to improve their risk rating so as to access cheaper premiums

Almost all states require each driver to have a kind of financial responsibility to pay for expenses caused by traffic accidents. One common way of establishing this financial responsibility is having auto insurance.

What if you consult several insurers and they deny you coverage? Are there other options you can explore?

Although most people may not know this, getting car insurance doesn’t happen automatically just because you have a vehicle. An auto insurance firm can deny you coverage.

There are various reasons why this happens. We’ll discuss the common reasons insurance companies can deny you coverage and the alternative ways you can use to get car insurance.

Compare car insurance quotes today to find the coverage that’s right for you at the best price! Enter your zip code above to get started.

Reasons a Car Owner May Be Denied Coverage

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Insurance companies have the right to deny you a plan if you are considered a high-risk driver. Here are the reasons you can be denied coverage:

  • Poor credit history
  • DWI/DUI conviction including other serious traffic offenses
  • Submission of a fraudulent claim
  • Owning a high-performance car
  • Insurance violations such as missing payments
  • Claims, accidents, or traffic violations on your driving record

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Reasons High-risk Drivers are Denied Coverage

Often, a high-risk driver has a combination of numerous traffic violations, major traffic offenses like hit-and-run, or DUI/DWI, or an at-fault accident. These items indicate to an insurer that you are a high-risk driver and offering you a policy will not be good for business.

They may end up paying out many claims if they risk covering you.

Taking driving classes improves your license points and shows the insurance providers that you are doing everything to become a safer driver.

Buying Car Insurance After a Denial

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Since almost all states have specific insurance requirements, you will need to take the responsibility of carrying the minimum state coverages. Just because insurers have denied you coverage doesn’t mean you have the right to drive uninsured.

Luckily, you still have options you can consider if you are denied coverage:

– Shopping around

One or more companies can deny you coverage, but another insurer may be glad to offer you the car insurance. Get different policy quotes so you can increase the chances of acquiring a plan at a reasonable cost.

Remember, if you have been denied by more than three insurance providers, you may need to consider approaching high-risk auto insurance providers.

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– High-risk Auto Insurance

Insurance for cars is usually sold in different tiers. When an insurer denies you a policy, there is a high likelihood that you are being rejected in the standard tier. But, there is a high-risk car insurance tier, and you might get the help you need.

Most insurance providers work in both tiers, whereas others specifically sell high-risk car insurance plans.

Remember that the premium rates offered by a high-risk tier company are considerably higher compared to the standard rates.

High-risk car insurers can be easily found online just like the standard car insurers. Be sure to make a comparison before registering for coverage. Get multiple quotes and compare the rates; this ensures that you get an affordable plan for the car.

– State Automobile Insurance Coverage

If you have searched in the high-risk market and you still haven’t found a suitable insurer, you need not give up. There is still hope for you!

Since car insurance companies have an option of denying coverage to high-risk drivers, all states that mandate limits of auto insurance legally have certain programs. These programs help drivers who don’t have plans to get alternative coverage.

The programs come in the form of an assigned-risk plan or an auto insurance policy. For you to participate in such plans, you must meet the state requirements regarding the number of times you have applied for automobile insurance.

For instance, you might need to show the proof of being denied coverage by more than three insurance providers before you can be considered.

Through the auto insurance plan offered by the state, your risk can be shared between participating insurance firms. Via the assigned-risk plan, you will be assigned a company that will offer the car insurance cover you require.

All insurance providers that provide car insurance in any state are required to take part in the state’s plan. Apply for a state plan through an auto insurance agent who is licensed by the state to do the business.

How to Reduce your Risk Level

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An ideal way you can avoid being denied coverage is by reducing the risks you are presenting to the car insurance companies. Here is how you go about it:

  • Take a defensive driving course
  • Repair your credit
  • Avoid traffic violations as well as accidents
  • Purchase a moderately priced and safe car

Note that even if you are required to get high-risk auto insurance now, or get your coverage through your state plan, it doesn’t mean that you still have to do it in the future. As you continue to improve the risk rating, you can re-enter the standard tier soon enough.

Immediately you return to the standard tier, it will be easy to get cheap car insurance.

Enter your zip code into our free car insurance comparison tool below to get started comparing top insurance companies side-by-side.