Car Insurance for Hard to Insure Drivers in Canada

If you own a car, you are going to need insurance to cover your costs if you are in an accident. Sometimes the accident is not even your fault, but you still need to have adequate insurance to protect yourself against claims of other drivers.

Many people will establish their responsibility with finances through car insurance coverage. Sometimes people are not approved for coverage. How can you obtain the car insurance that you need if you do not qualify for coverage?

Find out the Reasons for Denial

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Auto insurance companies can deny insurance coverage if a person is considered high-risk. These are some the main reasons for that label:

• If you have allowed insurance coverage to lapse and have had a violation;
• You own a sports car (high-performance);
• You have numerous traffic offenses on your driver abstract
• Your credit is bad
• You have had a conviction for drunk driving;
• You have had an accident that injured other people.

Can a Car Insurance Company Deny Coverage?

You must purchase car insurance but how can you do that if you are denied? It is the law to have minimum coverage. If you have been denied coverage, you cannot drive uninsured. You should shop around for different insurance companies to discover what your options are. One auto insurance company can deny you coverage, but another one may provide it to you. You can obtain several quotes to offer to each company as a bargaining tool. With quotes in hand, you will increase your chances of getting insurance at a reasonable rate.

High-Risk Auto Insurance

If you have been denied coverage by more than three providers, then you might need to consider high-risk auto insurance. You may not qualify for standard insurance or low-cost insurance. You will probably be able to be eligible for high-risk insurance. Some insurance companies do not offer high-risk insurance so you will need to find a company that does.

Look for an online quote and then try to obtain many different quotes so that you can get the best price for your insurance.

Reduce Your Risk Factor

If you do not want to be denied car insurance, then you need to reduce your risk. You can:
• Purchase a car that is considered “safe” and has less power;
• Work on repairing your credit;
• Take a defensive driving course;
• Avoid traffic accidents and violations

When you work on improving your risk rating, then you may soon qualify for lower rates. It is much easier to find lower cost car insurance once you have qualified for the standard rate tier.

How Much Does Your Car Insurance Go Up After an Accident?

When you are involved in an “at fault” accident, it is you that is considered the driver that caused the crash. This can occur if you hit another car or did not stop in time. Multiple drivers can be found to be at fault for an accident, but your insurance company will determine your share of the fault. You may be found at fault anywhere from 0% to 100%. Your insurance rates are discounted for each year that you do not make a claim. The opposite is true when you do make a claim. While every car insurance company is different, you could pay up to 50% more insurance when you make a claim.

How Long Before an Accident is Removed From Your Record?

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Your insurance company may want to see your driving record when you are applying for car insurance. If you have bad driving habits, those bad habits will show up on your driver abstract. All collisions and traffic violations will negatively reflect on your record. Traffic tickets can stay on your record for up to 3 years after you have received them. If you have a car accident where you are at fault, it can remain against your driver abstract for a minimum of 6 years and maybe even up to 10 years. The amount of time this record remains can vary from province to province.

How Much Time Do You Have to Report an Accident to Your Insurance Company?

If you have recently had a collision, then each province has a dollar value for the estimated damages.  Police involvement is determined by this damage dollar value.  If you have a $2,000.00 threshold, then you do not need to report the accident if the damage is less than that amount. Your insurance policy requires you to report all accidents whether or not the amount of damage is significant. Some people believe that they do not need to report every accident to their insurer, but every insurer wants to be kept in the loop.

Some people like to have a dash cam to record any incidents. A dash can recording can help to lessen your chances of being found at fault in any collision. Your insurance company will be better able to take your side if you have recorded the accident and it is not your fault.

Report all Accidents

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You could be charged if you leave the scene of an accident without reporting it. Call your local police on their non-emergency line to report an accident. Remember, leaving the scene of an accident can result in a conviction and increased insurance rates. You may also have to pay a fine and serve some time in jail.

If you do not report an accident and the other driver does, it can lead to the other insurance company settling their claim with yours. If it is determined that you are partially or fully at fault for the accident, then your rates can be increased. You want to report an accident when it happens. You do not need to process a claim through your insurance company, but you must report. If the accident is more severe than a fender bender and you need to involve the police, call them and have them attend the scene.  If anyone is injured, they should be taken to the hospital. Never be afraid to report an accident, it can save you a lot of headaches in the future.