Can Insurance Companies Deny Coverage?


Besides keeping you and your family safe when you need it most, car insurance can also provide you with peace of mind when out on the road. Whether you’re looking to purchase a new vehicle or are ready to pass your old one down to your teen, car insurance is a must. However, remember that there are instances where drivers may be declined a car insurance policy.

4 Reasons You Might Be Turned Down for Car Insurance

If you’re thinking, “Can car insurance companies deny coverage?” Well yes, though there may be a variety of reasons why. Below, we’ll go over 4 common reasons this could happen.

Failing to Make Payment

As with any other service, you are expected to make timely payments. If you have a history of not paying or a lapse in coverage, the insurance company may decline to cover you. However, there’s a chance your insurance company may still provide you with coverage if you pay your entire premium up front.

Having a Suspended License

If you’ve racked up more than a few driving infractions, it could mean having a lot of points on your license. If you get too many of those, you may just make it into the infamous pool of high-risk drivers. If that is already the case with you, you may be required to find an insurance company that provides high-risk policies.

Previously Lying on an Application or Committing Insurance Fraud

As you can probably imagine, insurance companies won’t take too kindly to potential clients with a history of deceit. If you have lied on previous insurance applications or have committed insurance fraud in the past, chances are you won’t be insured.

Having Too Many Claims

There’s a chance an insurance company will decline you as a client if you have a history of filing too many claims. They may just see this higher-than-average amount of claims as a potential increase cost to themselves.

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