I was denied car insurance because of a criminal record. What should I do now?

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 a lot 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 because of a criminal record.

How a Criminal Record Affects Your Auto Insurance

A criminal record can have major consequences when taking out auto insurance, even if your criminal record has nothing to do with your driving behavior. Insurers believe that a criminal record does say something about your values and standards. During the insurance application process, the insurer tries 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’ll receive compensation anyway in the event of damage. With auto 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 mainstream insurance company will accept you anymore. Every insurer has different underwriting requirements. Whether you can still get auto insurance from a traditional company depends on the severity of the violation and how long ago it occurred. If the insurance company does accept your application for auto insurance, there will be certain conditions attached, such as a higher premium.

Can an insurer cancel my insurance policy because of a criminal record?

Yes, an insurer may cancel an insurance policy if you have a criminal record. This also applies if it turns out that you concealed 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 cannot assess 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 a payout in the event of damage or an accident. Furthermore, you’ll be registered as a fraudster in the CIS database, and it will be even more difficult to obtain car insurance in the future.