What if I can't get coverage? (2024)

FAQs

What if I can't get coverage? ›

Call your state insurance department

Insurance companies frequently deny coverage if the applicant has a recent history of accidents, a series of minor traffic tickets or a serious infraction such as a DUI. These are strong indicators of a risky driver who may cause a car accident and submit a claim.

An insurer might deny coverage to a driver who it believes poses a higher risk and is more likely to file a claim. Also, drivers under 18 typically don't qualify for their own car insurance policy and instead must be listed on their parents' or other family member's policy.

If serious issues exist with the home or property, the FHA will consider the home uninsurable. Borrowers would need to contact private insurers to cover the property, or a 203K loan could be used to make the necessary repairs. U.S. Housing and Urban Development.

Why might you have a problem getting insurance. Insurers decide the terms and conditions on which to offer insurance cover or whether to offer cover at all. You may have a problem getting insurance if you have a complex medical history, are elderly or have criminal convictions.

Being turned down for insurance, or not having your policy renewed, happens when an insurer decides it can no longer continue to cover you. This can occur for several reasons, such as changes in your situation that increase your risk, problems with credit history, a criminal record, or too many claims in the past.

California

Insurance companies in California don't use credit-based scores or your credit history for underwriting or rating auto policies, or setting rates for homeowners insurance. As a result, your credit won't impact your ability to get or renew a policy, or how much you pay in premiums.

Damage caused by negligence or normal wear and tear

For example, if you don't trim a tree on your property and a falling limb damages the roof of your house, you would not be covered. Insurance also doesn't cover normal wear and tear, such as replacing carpet that's worn out from years of being walked on.

If your insurer nonrenewed or cancelled your policy because your house needs repairs or you filed too many claims, you may have difficulty finding an insurance company willing to insure your home.

Why am I being denied for home insurance? ›

Living in a high-risk location, having hazardous home features, home maintenance issues, your home's history of insurance claims, and more can be reasons an insurance company may determine a house to be uninsurable.

The Bottom Line

If you have a car that's uninsurable, a bad driving record, or both, Worters says, you may have to turn to what's called an “assigned risk” or “residual” insurer, which is basically the last resort for someone who can't get a policy anywhere else.

They can include engaging in risky hobbies and behaviors like skydiving; having a history of DUIs or speeding tickets; having a dangerous job like roofing; having a criminal record or a less than ideal financial history; being a smoker; and failing a drug test.

Having a history of making multiple insurance claims, whether big or small, could signify that you are a high-risk client and therefore may make an insurer less likely to take you. If you are found to have committed insurance fraud in the past, you are highly likely to be denied health insurance.

Why are people uninsured? Despite policy efforts to improve the affordability of coverage, many uninsured people cite the high cost of insurance as the main reason they lack coverage. In 2022, 64% of uninsured nonelderly adults said that they were uninsured because the cost of coverage was too high.