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Can An Insurance Company Refuse to Insure Your Vehicle?

    Can An Insurance Company Refuse to Insure Your Vehicle?

    When it comes to purchasing insurance, you must want to get a reliable insurer that can assist in case of emergencies. As a consumer, you can choose and reject whichever insurance provider. However, can they, the insurance provider do the same to you? Can a car insurance company refuse to insure your vehicle?

    You might think that a car insurance company serves you and makes money on every driver, so they would not pass on the client that can bring them money. But, a car insurance company can refuse to take you on as a client and insure your vehicle under certain circumstances. But why would that happen?

    Read on as we share the circumstances that give them enough reason to deny coverage.

    Why would an insurance company refuse to insure your vehicle?

    History of not paying on time

    The problem might lie in your payment history. For instance, making late payments could result in your car insurance being canceled. Hence, the coverage is no longer valid for your vehicle.

    The insurance company may see you as irresponsible and cannot afford to renew. Generally, you’ll get a warning for non-payment and have some time to get it paid before your policy is cancelled. But this can depend on the insurance company and if you’ve missed more than one payment. 

    When is your payment considered late?

    Payments are generally considered late after it passes the day after the due date as soon as the clock ticks at 12.01 am. A late payment could lead to a lapse in coverage, eventually total policy cancellation.

    A lapse in coverage means you would lose protection for your vehicle. Anything that happens after your car insurance lapses is beyond your insurer’s responsibility. In the event of a car accident, you’ll have to pay out of pocket for any damage you cause to yourself, another involved party, and your car.

    *Please check with your insurer and notify them that you’ll have to make a late payment. Different car insurance companies may have different rules on late payments.

    Traffic violations

    Having a number of traffic violations can affect your insurance application. Here we list some traffic records that can cause an insurer to deny coverage.

    1. Multiple road accidents – getting involved in several road crashes may depict you as a risky individual. Your insurance company will see you as a liability instead and will be very careful in choosing whether to accept your application.

    2. Serious offences – driving under the influence is a major traffic offence by law. Getting caught on one or multiple occasions may cause your application to get declined.

    Lying on an Application

    Please be honest when you apply for car insurance. You need to answer honestly and complete it fully to be eligible for coverage. A dishonest or incomplete application form may cause a coverage denial.

    If it is incomplete, the insurance company will likely send it back for you to complete. If you lie on an application, your car insurance could be voided if the misrepresentation is discovered.

    Expensive car

    Some insurance companies may not be able to provide coverage for an expensive car that comes with costly repairs.

    That is why you need to find an agency ready to insure high-valued vehicles.

    No driving licence

    You cannot drive without a valid driving licence. Doing so can land you in trouble – you are liable for a fine. The following is the amount that you have to pay over time.

    1 – 15 daysRM150
    16 – 30 daysRM200
    31 – 60 daysRM300

    To your knowledge, a driving licence is among the required documents that you need to present when applying for coverage. The insurance provider will not be able to provide coverage to an individual driving without a valid licence.

    What can you do if you’re denied coverage?

    You may have no other option if the insurance company refuses to insure your vehicle. You may seem a risky individual or liable for coverage. It is the company’s right to deny you coverage if they think that you are not honest or you are a high-risk driver. 

    Therefore, what can you do here is look for other insurers. There are still insurers that are happy to provide policies for the majority of motorists who have been refused elsewhere. Insurance companies each evaluate applications differently, so one may provide coverage while another may not.

    Bjak is one of Malaysia’s largest car insurance comparison sites. Get free quotes at Bjak and renew car insurance and road tax online in just 5 minutes.

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