Car insurance is a legal requirement if you want to drive on UK roads, but that doesn’t mean that every insurer is obliged to accept your application for coverage.
There are a number of factors that could influence a provider’s decision to offer you a policy or decline your application, so how do you know whether you’re likely to be accepted for your chosen policy?
In this article, we’ll address the factors you need to consider before applying for car insurance to ensure you don’t spend your time applying for policies you’re unlikely to be approved for.
Read on or jump to a specific section:
Driving history
Unsurprisingly, any driving history consisting of driving offences, penalty points on your licence and any instances of uninsured driving will negatively impact your chances of being approved for motor insurance.
And the more penalties against your licence or registered offences in your name, the less likely you are to be accepted.
It might also be worth considering the financial impact if you are accepted by some lenders. If you do have these types of offences registered to your licence, it’s likely your premiums will be higher compared with those who do not have a bad driving history.
Also see: Where can I find cheap car insurance?
Age and experience
If you are a young driver or have only just passed your test, there might be some insurers that won’t approve you for a policy.
While this might seem unfair since you haven’t done anything wrong and you can’t help how old you are, unfortunately, younger drivers and those with less experience represent a higher risk than older road users who have driven for decades without an incident.
However, while some providers might not offer insurance to young or new drivers, you should be able to find a provider that will, without much difficulty.
Credit history
When you purchase an insurance policy, you’re opting into a contract to make regular monthly payments to your provider. This means the insurance company must trust that you will make these payments as expected and on time.
If you have a low credit score or a history of bad credit, it might impact your likelihood of being accepted for a policy since providers might see this as an indication you won’t make your payments.
The vehicle you drive
High performance vehicles, modified cars and vehicles that are either old or in bad condition are often harder to insure.
High-performance cars pack a lot of power, meaning they have the potential to drive at quite a speed without trying too hard. For many providers, this increases the risk of accidents, particularly when in the wrong hands. Not to mention, these types of cars often come with expensive modifications and parts which may be seen as too risky for some insurers to cover.
Heavily modified vehicles, especially those for performance, might also be refused as they also pose greater accident risks or are more expensive to repair.
And finally, very old or poorly maintained cars may be harder to insure, especially if they pose safety concerns.
Also see: What is fully comprehensive motor insurance?
The bottom line
Being accepted for a car insurance policy is essential if you want to drive in the UK, but how easy that process is depends on various factors such as your driving history, age, experience, credit rating, and the type of vehicle you drive.
Insurers assess risk based on these elements, and certain circumstances, like previous driving offences or owning a high-performance vehicle, may make it harder to secure coverage.
However, by understanding these factors and considering the options available to you, you can increase your chances of finding a suitable policy.
And always compare insurers to find one that meets your needs and profile as not every policy is the same.
If you’re ready to start comparing your options, why not head over to our Motor Insurance Comparison page? It’s simple, fast and helps you find the best policy for you at the best price.
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