What to Do if You Can’t Find Car Insurance

Why You Might Be Denied Car Insurance

There are several reasons you might be denied auto insurance.

• You're a risky driver. A driving record showing a history ofaccidents, moving violations or DUI convictions can make you too risky to insure.
• You've filed a lot of claims. Even if the claims are due to accidents you didn't cause, filing too many claims could prompt your insurer to drop you. This can make it harder to get car insurance elsewhere.
• You're a new driver. New drivers, especially men under 25, are statistically more likely to be involved in accidents. If you've never had auto insurance before, you're also an unknown quantity for insurance companies.
• You committed fraud. If you lied on your application for car insurance, left out critical information that would have prevented you from getting insurance or filed a fraudulent insurance claim, your insurance company may cancel your coverage, and you might have trouble getting new insurance.
• Your insurance coverage has lapsed. Your auto insurance can lapse if you don't pay your premiums or if your insurer decides not to renew your policy when the term ends and you don't get new coverage by then.
• You have health issues that may make driving dangerous. For instance, if you've been diagnosed with a seizure disorder, companies may be reluctant to insure you.
• You own a classic or high-performance car. Exotic cars, customized or classic cars may require specialized auto insurance. High-performance vehicles can tempt drivers to speed, increasing insurers' risk.

Learn more: How Do Traffic Tickets Affect Your Insurance?

How to Get Car Insurance After Being Denied Coverage

Here are some things you can do to improve your risk status and get affordable car insurance after being turned down.

• Look for specialized insurance. For example, if you've had a DUI you may have more luck finding coverage by searching for SR-22 insurance or FR-44 insurance. Owners of exotic or high-performance cars can search for insurers that specialize in this type of vehicle.
• Be patient. It generally takes three to five years for moving violations and auto insurance claims to drop off your record, although this can vary depending on state law. More serious offenses such as DUIs typically take longer to clear; for instance, in California, a DUI could impact your insurance rates for up to 10 years.
• Drive safely. While you wait for your record to clear, be careful to follow the rules of the road. Completing a defensive driving course can help show insurance companies that you're taking action to improve your driving skills.
• Take steps to improve your credit. Insurance carriers in most states can use your credit-based insurance score to assess your risk of missing payments or filing claims. This differs from your regular credit score, but since both scores use data from your credit report, actions that improve your credit could also boost your credit-based insurance score, which may make it easier to find coverage.
• Get on your parents' auto insurance. Teen and young adult drivers generally shouldn't try to get auto insurance on their own. Being added to your parents' policy can make it easier to get coverage and typically qualifies you for lower rates too.
• Reduce your coverage. Eliminating extra coverage such as roadside assistance or windshield repair could make car insurance more affordable. You might also consider dropping comprehensive and collision coverage if your car is paid off and not worth very much.
• Raise your deductible. Choosing a higher deductible typically means lower car insurance premiums. However, you'll have to pay the deductible if you file a claim, so make sure you can afford the extra expense.

Tip: Did your car insurance lapse due to missed payments? When you get coverage again, set up autopayments of your insurance premiums to avoid another lapse.

Learn more: How to Get Affordable Car Insurance as a High-Risk Driver

Alternatives to Traditional Car Insurance

If you've had no luck getting car insurance through traditional insurance carriers, consider these alternatives as a last resort.

• High-risk insurance coverage: Some insurance carriers specialize in non-standard car insurance for high-risk drivers, such as people with multiple DUIs. You can find these companies through your state's department of insurance or by contacting an independent insurance agent.
• Assigned-risk pools: To ensure that all drivers have the minimum liability coverage required by law, states create assigned-risk pools that insurers can join in exchange for agreeing to insure any driver, regardless of risk level. You can expect car insurance from an assigned-risk pool to cost significantly more than standard coverage. Find more information from your state's department of insurance.
• Non-owner auto insurance: After a DUI or serious accident, you might sell your car or decide not to replace it. Non-owner auto insurance protects you when you drive a borrowed or rental car. Some states require people who don't own cars to buy non-owner car insurance following a DUI.

While it may be tempting, driving without the minimum insurance your state requires is a big risk. You could be fined, have your car impounded or repossessed, lose your license or even go to jail. Causing an accident without insurance could leave you liable for hundreds of thousands of dollars if someone is injured.

Learn more: What Happens if You Drive Without Insurance?

The Bottom Line

Shopping around and comparing rates from different insurance providers can help you find the best car insurance for your needs. You can get insurance quotes from car insurance company websites or by contacting insurance companies.

Checking rates with multiple insurance companies can be time-consuming. For a more convenient way to shop, use Experian's auto insurance comparison tool. Simply input your information once and you'll get quotes from top insurance carriers in your state, making it easy to find the most affordable coverage for your situation.