Yes, you can be denied car insurance. If you’re shopping for car insurance, it’s important to understand some of the reasons this can happen and options if you find yourself in this situation.
Reasons an Insurer May Deny a Motorist Car Insurance
There are some common reasons for an insurer to deny car insurance, such as:
- Fraud, such as someone who puts false information on an application or submits a fraudulent accident claim
- Arrest for a driving under the influence
- New driver applying for insurance on his/her own
- Low credit score
- Missed past payments
- High-risk drivers, which is the most common reason for denials. Not only might your rates go up if you’re in multiple accidents or receive citations, you could find it difficult to even get insurance as well
It’s important to request a reason for the denial in writing. Another step is to contact the Indiana Department of Insurance to file a complaint if the denial is unwarranted.
Sometimes high-risk drivers can improve their situation. Let’s say an individual is denied insurance because his/her “fast” car has resulted in a few speeding tickets. Trading it in for a more moderate vehicle could help. Or let’s say the individual has gotten into a few accidents. Taking a driver safety course could show he/she is making efforts to become a safer driver.
Make sure you shop around. It may take contacting a few insurance companies before finding an insurer who is willing to take you. Of course, that could mean paying higher rates. Also consider looking for an insurance company that specializes in high-risk clients. Again, expect to pay higher premiums.
How Indiana Law Impacts a Motorist Denied Car Insurance
Indiana doesn’t mandate motorists carry car insurance. But they do have to show financial responsibility in the event of a crash. Of course, an auto policy is the best way to do this. So most drivers prefer to protect themselves with car insurance.
Whether a motorist relies upon car insurance or other means, there are minimum amounts of financial responsibility he/she has to meet. Drivers must have $10,000 in property damage liability and $25,000 per person and $50,000 per accident in bodily injury liability.
One option if you’re denied car insurance is applying for the Indiana Auto insurance Plan through any agent in the state. This program requires that all insurance companies licensed in Indiana must take a share of drivers who are having trouble getting auto insurance.
Bonds and self-insurance may be other options to meet the financial responsibility requirements in order to drive legally in Indiana.
Seek Legal Advice if Injured in an Accident
Not having car insurance can create a significant financial burden in the event of a crash. If you’re at fault, even slightly, you can expect to bear some of the responsibility for payment of medical bills and other costs. But if the other driver caused the accident, not having insurance won’t matter when it comes to filing a liability claim against the other driver. His/her insurance company would have to cover the costs.
Talk to an attorney at Hensley Legal Group for help establishing liability and the value of damages after an Indiana car accident. Call us to set up an appointment: (317) 472-3333.