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Reasons Why a Car Insurance Company May Deny Coverage

car insurance denied reasons
10 September 2020 - 9:00, by , in Auto Insurance, No comments

Getting car insurance coverage from a big name company isn’t always easy, depending on your driving record and other personal details. Here are some of the main reasons your application for a car insurance policy might be denied.

Unique Vehicles

Classic cars and other uncommon vehicles may require special insurance, due to how insurers calculate premiums based on popular car models. Certain high-performance vehicles may require special coverage outside of conventional auto insurance policies.

Bad Driving Record

If you have been involved in multiple accidents or have been cited several times, it can make your car insurance search difficult. Not only can such a history boost your premiums, but many auto insurers might also deny your application due to viewing your driving behavior as high risk.

The most serious violations involve DUIs and DWIs mixed with accidents that you caused. A pattern of serious at-fault traffic accidents will certainly be a red flag to most insurers. An insurance company usually prefers drivers who have clean records, to keep their costs under control. Two big accident payouts tend to be too many for typical auto insurance companies.

Even too many speeding tickets can cause an auto insurer to reject your application. They want to take on safe drivers, not those who consistently engage in unsafe conditions.

Poor Credit Score

Prior to making a decision on your insurance application, the firm will check your credit score to calculate your “credit-based insurance score.” The rate can be adversely affected by a low credit score. Such a case may force you to buy auto coverage from a high-risk provider, who will inevitably charge higher rates.

Past Insurance Violations

An insurer may deny you auto coverage if they detect a pattern of insurance violations. Any missed payments or periods of coverage lapses can cause the firm to be skeptical. They want customers who pay them on time consistently since unreliable policyholders are considered high risk.

Reviewing these reasons will help you choose your provider and might even lead to better driving behavior. To learn more about auto insurance coverage, contact the experts at Mike Leonard Insurance Agency in Texas. We can connect you with our top insurance carriers, including Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance, to find the coverage you need.

At Mike Leonard Insurance Agency, our goal is to serve our clients with comprehensive personal insurance solutions at affordable prices. Because we are an independent agency, we are able to prioritize our clients' needs without having to worry about confounding factors such as commissions or overhead costs.