When I have tried to get daily car insurance I have been turned down but they did not give a reason for being refused? Daily coverage provided by many of the specialist online insurers has more restrictions than other types of car insurance. There are many reasons why you have been refused a policy. Even though you may only be after cover for one day you may think the insurer is being unreasonable when in fact they really are unable to provide you with a policy.
Insurance is a way to financially protect you and your property. To be able to drive a car it is a legal requirement to be insured. In fact the law has recently changed where you now need to be insured unless your car has been declared off the road.
Companies that provide policies have to weight up the potential costs of insuring a particular individual. They can only afford to pay out to a small number of their customers if they wish to stay in business. This means that they like to insure low risk individuals that are less likely to end up making a claim or someone else making a claim against them.
In the world on day car insurance there is much less leeway for the insurer. A person who may ordinarily get a policy by taking out standard annual insurance may not be able to get coverage for a daily policy. This is due to the fact that the premiums that the insures charge are much lower compared to that of an annual policy but the potential costs they have to pay out are still the same. The result; a much lower profit margin resulting in daily insurers being much more cautious in providing policies to certain drivers.
In a nutshell anyone who would usually pay a higher than normal premium. Essentially this means higher risk drivers such as those with convictions or younger drivers. Many insurers providing day cover will not insure you if you have a certain amount of points on your licence. Many insurers will not insure you if you are under 25 as under 25 year old drivers are more likely to result in a claim being made against their policy.
Although age is the most common reason points of criminal offences are also common reasons for being refused insurance. In some cases the insurer may well be willing to provide you with a policy but the problem may be that their underwriters will not underwrite the policy which means the insurer cannot insure you.
There are also other restrictions with temporary insurance. Most insurers limit you to the type of car they will insure you to drive. For most people this will not be a problem but for some it may e the reason you were refused cover. Many companies limit coverage to cars up to a certain insurance group. This means that any modified, classic or performance cars cannot be insured. It also means that the more expensive models cannot be insured.
If you have been refused cover; particularly if you are looking for one day car insurance for under 21 years of age then there are alternatives. One way to obtain cover is with a monthly or pay as you go policy. These monthly car insurance policies allow you to buy cover a month at a time. Although you have to buy longer periods of cover they do have fewer restrictions on the types of driver they will insure.
Under 25 Insurance
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