What Can I Do if No One Will Insure Me?

Car insurance is a key part of car ownership, and for most dealerships, no insurance means no sale. Getting into an accident without insurance can mean getting stuck paying tens of thousands of dollars to get your car back on the road.

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The process, at least on the surface, is straightforward: Get a few quotes, pick a plan and get approved. Easy, right? Well, not always. Some drivers hit roadblocks, like rejection from every major provider out there. But when no one will provide a policy, what options are left?

Can You Be Denied Car Insurance?

The long and short answer is yes, you can be denied car insurance. Standard providers have no obligation to offer coverage to anyone, particularly those who don't meet minimum requirements.

For some drivers, this can come as a shock. However, there are numerous factors that can make insurance harder to secure. These include:

• A poor driving record, like multiple at-fault accidents or DUIs
• Having too many tickets
• Being too young or too old, depending on the state laws in question
• Having a very expensive or very fast car that poses the risk of high payouts if claims are made
• A bad credit-based insurance score, or an insurance company's evaluation of the creditworthiness of a potential policyholder

A confluence of these things, or even just one should the instance be significant enough, can be enough to result in insurance companies denying coverage. Some may offer sky-high pricing in lieu of a denial, but that's not something a car buyer should count on.

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• Do You Need to Have Car Insurance?
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What Can You Do If You've Been Denied Car Insurance?

Being denied car insurance can be a tough pill to swallow, but that doesn't mean all hope is lost. There are still some solutions available to you.

The easiest solution for many people will be to attempt to get added to a family member's plan, like a parent or spouse. This is an ideal path for a young driver with a spotty history or a married couple where one person has made a few errors while on the road.

Another option is improving the circumstances that are impacting the eligibility for insurance. For example, selling a flashy, expensive car in favor of a more reliable vehicle may not be fun, but it's a good way to improve the likelihood of a cost-effective policy. Another alternative is a defensive driving class. These courses are designed to teach better driving habits and can result in a reduction of points against a license, which can make insurability more likely.

Another option is to work on things like your credit score. While not directly related to insuring a vehicle, a bad credit score can imply financial irresponsibility, which may push a borderline candidate over the edge for an insurance company. Doing things like making loan payments on time, disputing errors on a credit report and paying down debt can bring up your score, making you a better candidate for a policy.

However, these routes won't be available to everyone and can take time to implement. For most others, the best option is high-risk car insurance. A last resort that provides coverage when nothing else is a viable option, high-risk car insurance makes insuring your vehicle possible when no one else will make an offer.

What Is High-Risk Car Insurance?

Car insurance for high-risk drivers is generally offered through nonstandard insurers. Effectively, these companies will provide insurance when no one else will, as they don't deal with normal insurance circumstances, but they usually charge very expensive rates compared to standard car insurance.

Another similar option is the use of assigned risk pools. Effectively, customers apply to their state's pool when all other insurance avenues are exhausted. If accepted, the state will assign an insurance provider. All licensed auto insurance providers generally must participate in these pools, so under these circumstances, a driver may still end up with a policy from a standard provider. The costs may be far higher than average, but this method makes obtaining insurance a possibility.

High-risk car insurance doesn't have to be forever. As driving records and credit scores improve, it's possible to request a new quote from providers that previously rejected applications to see if the situation has changed.