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How to Deal with a Rejected Application for Auto Insurance

22 Jun by 5280 Insurance

Car insurance companies may refuse you coverage for a variety of reasons, ranging from your driving record to the sort of vehicle you possess. For the same reasons, they may opt not to renew an existing insurance.

If you are refused auto insurance coverage, your best choice in the near term is to find another provider, such as one that offers non-standard or high-risk insurance plans. However, in the long run, you should strive to figure out why an insurance provider is refusing you coverage and then fix or remedy the situation.

Why Your Auto Insurance Application May Be Denied

There are a few reasons your auto insurance company may deny your application for coverage. 

1) You have a history of accidents or traffic violations: If you have a history of accidents or tickets, insurers may see you as a high-risk driver and charge you more for coverage or deny your application altogether.

2) Your credit score is low: Many insurers use credit scores to help assess risk. A low score could lead to a higher premium or denial of coverage.

3) You have gaps in coverage: If you’ve let your auto insurance lapse in the past, some insurers may view you as a high-risk driver and either charge you more for coverage or deny your application.

4) You’re driving a high-risk vehicle: Some vehicles are considered high risk because they’re more likely to be involved in an accident or stolen. These include sports cars, luxury vehicles, and certain types of trucks and SUVs. If you’re driving one of these vehicles, you may be charged more for coverage, or your application for coverage may be denied.

What to Do If Your Auto Insurance Application Is Denied

If your auto insurance application is denied, don’t panic. There are a few things you can do.

1) Check for errors: If you’re denied coverage, the insurer must send you a letter explaining why. Be sure to carefully review the letter to look for any errors in your application that may have led to the denial. If you find an error, notify the insurer immediately and ask them to reconsider your application.

2) Shop around: Not all insurers use the same criteria when assessing risk, so it’s worth shopping around to see if you can find an insurer that’s willing to offer you coverage. When comparing policies, be sure to pay attention to price, coverages, and customer service ratings.

3) Appeal the decision: If you still can’t find an insurer willing to provide you with coverage, you may have the option to appeal the decision. The appeals process varies by state, but typically involves submitting additional information or documentation to the insurer.

4) Get added to a family member’s policy: If you’re having trouble finding coverage on your own, you may be able to get added to a family member’s policy. This is typically only an option if you live in the same household as the policyholder and if the insurer offers this option.

5) Improve your driving record: One way to make yourself more attractive to insurers is to improve your driving record. If you have a history of accidents or traffic violations, taking a defensive driving course or refraining from driving for some time may help you get coverage at a more affordable rate.

6) Improve your credit score: As mentioned, some insurers use credit scores when assessing risk. If you have a low credit score, there are things you can do to improve it, such as paying your bills on time, maintaining a good credit history, and avoiding new debts.

Conclusion

If your auto insurance application is denied, don’t despair. There are a few things you can do to try to get coverage. Check for errors on the insurer’s part, shop around, and appeal the decision if necessary. You may also be able to get added to a family member’s policy or improve your driving record or credit score to make yourself more attractive to insurers.

At 5280 Insurance we’re committed to a local experience. That’s why when you call us, you’ll speak immediately with a real person. We don’t have automated systems. We don’t have long wait times. We don’t transfer you to multiple departments. Calling us is like calling a friend. We’re here for you, and we aren’t going anywhere. Get an auto insurance quote in Lakewood from us today!

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