Yes, individual car insurance companies can deny coverage for a variety of reasons related to your driving record or insurance history. Car insurance coverage is required by law in almost every state, however, which means you’re guaranteed to eventually find an insurer that will cover you, even if it’s through your state’s assigned-risk pool.
It’s important to note that there are laws prohibiting insurers from denying coverage to drivers based on things like age, gender, sexual orientation and marital status. Specific regulations vary between states, so if you are denied coverage, make sure to confirm that your denial wasn’t in violation of local law.
Factors that could make car insurance companies deny coverage include:
- Too many accidents on your record
- Excessive traffic violations
- Inexperience with driving
- Owning a fast, high-powered car
- Poor credit
- Lapses in coverage
If you’re denied coverage by an insurance company, they might not immediately give you a concrete reason, so it’s best to reach out and ask. If you are denied because you’re considered high-risk, that means the insurance company could stand to lose money by covering you and doesn’t want to take the chance. But you should still apply with other companies, since they could still accept you.
If that doesn’t work, then it might be best for you to narrow your search to companies that specialize in providing nonstandard insurance or look into joining your state’s assigned-risk insurance pool. You could also try getting added to a family member’s or roommate’s insurance policy, but beware that you could end up paying a higher premium if they’re a bad driver.
The best thing you can do to improve your long-term chances of approval is take steps to improve your driving record and your credit. Although you might have to temporarily pay a higher premium for less coverage, the goal is to eventually qualify for a policy that provides the most protection at the lowest cost.
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