September 27, 2009

What To You Do If You Can’t Find Auto Insurance

Obtaining the required amount of auto insurance coverage is mandatory in every state. Unfortunately, there are a number of reasons a regular insurance company may deny you auto insurance. Each company has its own take on your record, history and profile. But, if your application is denied, don't lose heart. By considering your options and doing some research, you'll be able to not only find the coverage you need, but put yourself on the road to eliminating your high-risk driver title.

There are several reasons a company may deny a person auto insurance coverage. One of the biggest reasons may be your poor driving record, indicating you may be a higher risk to insure. Having bad credit history is also a definite negative factor. If you have a history of late payment or non-payment to debt, an auto insurance company may form a not-so-favorable impression of you, thus a denial of your application for auto insurance. Cancellation of previous insurance coverage may also be a reason for a denial, as they will think you are at fault. Your personal profile is also one possible basis for denial. Each personal detail is looked and assessed in relation to driving pattern and demeanor. For example, teens are seen as aggressive and irresponsible, while single men are assumed to have riskier driving habits. Any of these factors can cause an insurance company to label you as a high-risk driver.

Everything is not lost when a company denies you coverage. There are options available, though they may be more expensive. Your first option is to look for "high-risk" insurers. Many are listed on the Internet. Some of these are independent companies, while others are allied with big insurance companies. Expect to pay a higher auto insurance rate and have terms that are less attractive than those from regular auto insurance company. The other option is to join the state-assigned risk pool. You can apply to be in the state's assigned risk pool if you have been turned down by at least three insurance companies. This is your last resort. These insurance companies are required by state law to take certain number of drivers in the pool, getting the income or absorbing the loss that comes with that policyholder. Your rate will substantially be higher in this case as well. The good thing is that you're finally able to obtain coverage you need to meet your state's requirements.

Even if you're regarded as high-risk driver, there are ways you can lower the cost of your auto insurance. Try to stay straight, drive safely and responsibly and in three to five years, your status and auto insurance rates should be back to normal status.