Can a car insurance company deny coverage?

An insurance company is a private company (except for those in which the State Treasury has a share), as such is subject to the law on economic freedom. If so, he has full freedom in selling his services and concluding contracts. Of course, she must not be discriminated against, but if objective premises say that such a contract will be unfavorable for the company, then it may not contain it. Can a car insurance company deny coverage?

Generally, insurance companies are not required to enter into an insurance contract if they do not want to do so for some reason. Each insurance company individually evaluates the amount of risk it takes on its shoulders. So it may happen that the risk is too great. The insurance contract is a voluntary contract and the scope of protection can be shaped freely in accordance with the principle of freedom of contract expressed in the Civil Code.

Exceptions to this rule

The exceptions to this rule are compulsory insurance, which includes: civil liability of farmers, insurance of agricultural buildings against fire, as well as – motor liability. If the insurance company deals with such insurance, it may not refuse to sign the contract with the client.

Can a car insurance company deny coverage?

Reasons why your car insurance application may be rejected

Car insurance companies are more likely to refuse insurance to people who they believe are more likely to make claims. Insurance companies often refuse insurance if the applicant has had a recent accident history, a series of minor road tickets, or a serious offense such as DUI. These are strong indicators that you are a risky driver who can cause a car accident and make a claim.

Claims rejected

Even if you pay premiums regularly and on time, the insurance company may not pay your claims. First, the situation around the claim may not be covered by the policy because it is one of the exclusions listed. One example is when homeowners are flooding and claiming their insurance company. Since floods are not covered by home insurance but by flood insurance, these claims are likely to be rejected. Secondly, the claim can be nothing more than a deduction, which means that the insured is responsible for its payment. Finally, the insurance company may consider that the damage was caused by the insured, which may allow him to reject the claim.

What to do if you can’t get a car insurance quote

If you have been denied a quote from an insurance company, apply for a quote from several other insurers. Each insurance company evaluates applications differently, so one can give you a quote and the other can not. In this case, working with an insurance agent can also make it easier because they can apply to several insurance companies at once.

 

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