Can Auto Insurance Companies Deny Coverage?

By 9  am on

Why Auto Insurance Companies can Deny Coverage in San Diego, CA

Auto insurance providers deny coverage to drivers all the time, and they have the right to do so. If insurance companies refuse to sell them car insurance, San Diego drivers should always ask why to ensure they were denied for legal reasons. Take a look at why insurance companies may refuse car insurance to applicants and what can be done to address these situations.

Right to Refusal

Car insurance providers have the right to approve or deny coverage to any applicant as long as the refusal isn’t based on discrimination of any type, such as bias related to race, gender, or religion. If you feel you’re a victim of discrimination, speak with an attorney to discuss your rights. Keep in mind most refusals aren’t due to one specific reason. In some cases, it’s a combination of factors. Even if a company has approved your application in the past, it has the right to refuse coverage after your policy expires.

Credit Problems

Insurance providers need to know you can pay your policy premiums. Therefore, the provider will run a credit check. If you don’t have good or excellent credit, the insurance company may refuse to cover your automobile. Do some research to see what the credit-based insurance scores are for California. If you don’t meet these scores, you may need to seek advice from a credit counselor. Paying your bills on time, checking for errors, and disputing inaccuracies could help with your credit problems.

Other Reasons for Refusal

If you have a history of driving accidents, traffic violations, or serious offenses such as DUIs, an insurance provider might deny your application because you’re viewed as a high risk due to past mistakes and offenses. If an insurance company deems it likely that you’ll make a significant number of claims, it may refuse to sell you auto coverage. The business has a right to look at your history because the information can help in determining how likely you are to file a claim.

The type of automobile you purchase could also lead to refusal. Some cars, trucks, and SUVs are extremely expensive, and companies may choose not to insure those vehicles. If you have a sports car, a provider may consider the vehicle dangerous or a high risk and deny you coverage.

Options

If a car insurance provider has refused to offer coverage, you should look for other affordable options. Some companies may approve you for a higher amount or fewer benefits. Find out why you’ve been denied in the past so you can work on fixing those issues in the future. For example, if your driving record was a factor, develop a strategy to clean up your record and remove some of the violations. Check around for local insurance agents who can help you narrow down your search and choose an insurance company that’s less likely to refuse you coverage. 

It’s always critical to make sure you have reliable insurance for your vehicle. If you need affordable, high-quality auto or motorcycle insurance, trust the experienced team at Altra Insurance Services. For a free quote, reach out to us today at 619-474-6666.

Have Questions?

Ask What You Want

or
Call Us: For Free Consultation
(800) 719-9972



ALTRA INSURANCE - We’ve Got you Covered