Car insurance is compulsory almost everywhere in the United States. But it can be difficult to get a policy if you have poor driving performance or are seen as high risk for other reasons. What happens if a person cannot get auto insurance?
Reasons why your car insurance application may be rejected
Car insurance companies are more likely to refuse insurance to people who they believe are more likely to make claims. Insurance companies often refuse insurance if the applicant has had a recent accident history, a series of minor road tickets, or a serious offense such as DUI. These are strong indicators that you are a risky driver who can cause a car accident and make a claim.
Why you can refuse traditional insurance
Car insurance is necessary to legally drive a car in the United States. But you may have difficulty getting traditional private insurance companies to get the policy if you are at high risk for them because:
- You have poor driving performance – a history of collisions, traffic offenses or DUI / DWI sentences makes it difficult – and extremely expensive – to get insurance.
- You haven’t driven long enough – it is harder to insure teenage drivers because of their lack of experience behind the wheel (and their greater propensity for dangerous behavior related to youth).
- You don’t have any insurance or bad insurance – if you haven’t owned your car for too long, you are an unknown risk. A history of insurance breaches or termination of non-payment will also mean that the risk will be low.
- You have poor credit standing – many insurers use credit information as a risk predictor because people who do not manage their credit effectively report more claims.
- You live in an area where the loss of theft and vandalism is high – the increased possibility of injury, stolen car parts – or the entire stolen car – can force insurers to turn you around.
- You own a special or high-performance car – non-standard or classic vehicles have their own insurance needs.
What to do if you can’t afford car insurance
For most Americans, driving without a car is unthinkable. You must buy groceries, take your children to school, visit the doctor’s office and meet friends and family from time to time. Unless you have a very good friend who wants to be your chauffeur, life without a car doesn’t work.
Several cities oppose the rule – New York, Washington, Chicago, Boston – because they have convenient and convenient public transport. Abandoning a car in these cities makes sense.
However, for everyone else, the lack of a car is a special kind of hell. Even people who have gathered enough to buy them are grounded if they can’t afford insurance.
