Types Of Drivers That Are Denied Car Insurance Coverage
There are specific circumstances under which drivers may be denied car insurance coverage. Denial of coverage usually stems from a car insurance company classifying a driver as high risk. The types of drivers who may be denied coverage include those with a DUI/DWI on their records, numerous traffic violations and accidents, late or missed payment of insurance premiums and/or those who have filed false information on insurance applications and accident claims.
When car insurance companies deny car insurance coverage for drivers, it is usually because they see those applicants as presenting too high of a financial risk. A driver who has a history of driving while intoxicated or numerous accidents and/or traffic violations, is a red flag for insurance companies. Some companies insure such applicants but at the cost of a very high premium. However, in extreme cases, drivers who have broken the law will be denied coverage altogether to protect the insurance company against excessive financial loss.
Falsifying information on an auto insurance application is another reason for denial of coverage. When a driver lies on an application it is an indication to an insurance company that his word cannot be trusted. When it comes to dealing with accidents, identifying who is at fault, assessing vehicle damage, and coordinating the cost of repairs, car insurance companies want to deal with individuals who will tell the truth. Intentional falsification of records and fraudulent filings of accident claims lead to additional costs for insurance companies.
Missed auto insurance premiums also lead to denial of coverage. When drivers do not pay their premium, depending on their insurance carriers and the state of residence, their car insurance coverage will be canceled. Often there is no grace period. There are usually penalties for missed payments.
Drivers who have been denied car insurance coverage are in a difficult position. Getting into an accident without car insurance can lead to extreme financial costs or even jail time in some situations. Driving without insurance can also lead to driver's license suspension. It can sometimes take three to five years to clean up a driving record.
If denied car insurance coverage, drivers can still make an effort to get car insurance. There may be some insurance companies who are willing to take on the financial risk. This requires calling a large number of auto insurance companies. It will usually also involve paying much higher premiums.
Avoiding accidents and traffic violations and taking a driver's safety course is a good way to convince a car insurance company that a driver is insurance-worthy. Driving a less expensive car that is equipped with safety and recovery equipment is another helpful strategy.