It can be frustrating for your car insurance claim to be denied. After all, you pay expensive premiums every month. You deserve compensation, but it is not always assured.
Insurance companies may reject a claim for many reasons. Many of these may be in the fine print or your nature as an insurance policyholder. You may be considered a high-risk candidate or a future liability.
You may be at fault to a point here. Before blaming your insurance company, take time to reflect on your habits as a driver. We’ll explain more about these often unchecked reasons and factors that will cause insurance denials.
Valid Reasons Outside Coverage
An auto insurance company offers insurance protection. However, certain policyholders, upon background checks, may have a bad history of driving mishaps one after the other.
If this is the case, your insurance provider may use the funds you pay as more of a financial well to lean on rather than actual protection.
Denials are sometimes valid and are for legal reasons. Insurance companies understand that there is an inherent risk, but the kicker here is how much of a risk a policyholder or applicant is. A history of driving liabilities with habitual offenders, driving under the influence case, and so on can all be indicators of high risk.
Other Denial Factors
Denial means that an applicant is more of a risk than an actual policyholder that needs actual insurance protection. Aside from the obvious glaring details mentioned are a few other valid and legal reasons.
One is an applicant’s credit-based insurance or CBI score, making you more of a financial risk. Did you have any unpaid car insurance premiums, bills, or credit cards? All these will factor in the company’s approval.
Still, other denial factors will revert to the car owner or even their car. A luxury car may be beyond regular insurance coverage and can be denied. Insurance companies can also deny applicants because the issue in question is not part of their insurance coverage. Some applicants may be denied for their age and their full ability to drive unless state laws forbid age discrimination.
What Are My Options for Car Insurance?
Non-standard insurance companies may be your best bet if you’ve scoured all possible car insurance companies and offers. These other insurance companies may give high-risk applicants a certain threshold despite bad history. However, you may need to pay bigger premiums as a result.
You can also use other forms of eligibility in a family’s insurance policy. Take note of certain family insurance clauses that apply. These conditions will often involve the main policyholder, so make sure you are satisfied with these conditional terms.
Conclusion, Go with Sanford Insurance today
Many auto insurance companies will deny applications from high-risk drivers with a bad history of accidents since such persons are more of a liability. A driver with a bad history isn’t beyond insurance redemption, however. Aside from other more lenient insurance providers, they can also improve their driving to qualify.
Sanford Insurance Center offers comprehensive
car insurance for the Sanford, Florida and Orlando Florida
area, including RV and mobile home coverage. While a bad driving history can hamper your ability to get insurance, you may still qualify with us under certain conditions. Call us to get proper insurance today.
