Due to a criminal record, I have been denied car insurance, now what?

Has your application for car insurance been denied because you have a criminal record? That’s frustrating, especially if your criminal record has nothing to do with your driving behavior. You’ll find that it’s much harder to get car insurance with a criminal record. Does that mean you can’t insure a car at all anymore? Fortunately, no! Read here to find out how you can still get insurance if your car insurance application was denied due to a criminal record.

How a criminal record affects your car insurance

A criminal record can have a significant impact on your ability to obtain car insurance, even if your criminal record has nothing to do with your driving behavior. This is because insurers believe that a criminal record does say something about your values and standards. During the insurance application process, the insurer attempts to determine the level of moral risk. Moral risk is the risk that someone will be less careful with the vehicle because they know they will receive compensation in the event of damage anyway. With car insurance, for example, someone might drive faster and more recklessly because the insurer will pay out regardless in the event of an accident or damage to the car.

However, it’s not the case that no standard insurance company will accept you anymore. Every insurer has different underwriting requirements. Whether you can still get car insurance from a standard company depends on the severity of the violation and how long ago it occurred. If the insurance company does accept your application for car insurance, certain conditions will apply, such as a higher premium.

May an insurer cancel my insurance because of a criminal record?

Yes, an insurer may cancel your insurance policy if you receive a criminal record. This also applies if it turns out that you failed to disclose your criminal record on the insurance application. You are required to disclose a criminal record if the insurer asks for it. This is because the insurer does not have prior knowledge of your criminal record. As a result, they are unaware of the risk they are taking on. If you conceal a criminal record, you are committing insurance fraud. As soon as the insurance company discovers that you have concealed a criminal record, they can terminate your auto insurance immediately. You will then lose your right to compensation in the event of damage or an accident. Furthermore, you will be registered as a fraudster in the CIS database, and it will be even more difficult to obtain car insurance in the future.