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Because almost all states have car insurance requirements, chances are you need to carry at least the minimum state coverages and limits on your policy. Being denied car insurance coverage is not a valid excuse to drive uninsured.

Fortunately, you have options if you've previously been denied coverage.

Shop Around

The first thing you should do if an auto insurance company denies you coverage is to continue shopping. While one company may deny you coverage, another company may be happy to provide you with car insurance.

NOTE: If you've been denied by three or more car insurance providers, it may be time to look at high-risk auto insurance (see below).

High-Risk Car Insurance

Car insurance is typically sold in different tiers. If a car insurance company denies you coverage, they are likely denying you in the standard tier. There is, however, a high-risk auto insurance tier where you may be able to find coverage.

Many car insurance companies work in both tiers, while some companies specialize in selling high-risk auto insurance. Keep in mind that premium rates in the high-risk tier of car insurance are generally considerably higher than standard rates.

State Automobile Insurance Plans

If you continue to have difficulty finding car insurance even after looking in the high-risk market, you still have hope.

To combat the fact that car insurance companies have the option to deny coverage to some drivers, all states that legally mandate limits of car insurance have programs to assist drivers with getting the required amounts of auto insurance.

These programs typically come in the form of an automobile insurance plan or an assigned-risk plan. Note that to participate in one of these plans, there may be state requirements regarding how many times you've applied for car insurance. For example, you may have to have been denied car insurance coverage by at least three providers before applying.

Through a state's automobile insurance plan, your risk is shared between the participating insurance companies.

Through an assigned-risk plan, you are assigned to a car insurance company that will provide you with your needed car insurance coverage.

Generally, all companies that offer car insurance in a given state are required to participate in that state's plan. You can apply to a state plan through most auto insurance agents licensed to do business in that state.

Reducing Your Risk

The best way to avoid being denied car insurance is by reducing the risk you present to a car insurance company.

You can reduce your risk rating by:

  • Avoiding traffic violations and accidents.
  • Repairing your credit.
  • Buying a safe and moderately priced car.

Remember, even if you currently have to obtain high-risk car insurance, or auto insurance through a state plan, you may not have to do so in the future.



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