Can I get car insurance if I have a criminal record?

Yes, you can always get car insurance, even if you have a criminal record. However, there’s a good chance you won’t be able to get it from a standard insurance company. You can turn to an insurance company that specializes in high-risk policies. That said, there are additional conditions attached to taking out car insurance, such as a higher premium. We’ll explain how you can still get car insurance even with a criminal record.

I was denied car insurance because of my criminal record

An insurer asks about your criminal history to determine how reliable you are. When deciding whether or not to issue a car insurance policy, the insurer tries to assess how high the moral hazard is. Moral hazard is essentially the risk that someone will be less careful because they know they’ll receive compensation (for damages) anyway. In the case of auto insurance, for example, this could mean that someone drives much faster and less carefully because they know they’ll be paid out anyway in the event of damage.

Based on underwriting questions, the insurer assesses whether or not to issue a policy. For example, they check whether your criminal history is relevant to the type of insurance you’re applying for. Have you had your driver’s license suspended in the past, for example due to alcohol abuse? If so, you’re considered too high a risk for most insurance companies, and there’s a good chance they won’t accept you. If the insurance company does accept your application, there will be certain conditions attached, such as a higher premium.

Am I required to disclose my criminal history when purchasing auto insurance?

Yes, you are required to disclose your criminal history if the insurer asks for it. The insurer does not have access to your criminal record. Unless you tell them, they will not know anything about your criminal history. In that case, they also cannot assess the risk they are taking on. That is why it is important that you do not withhold any information about your criminal history. Doing so would constitute insurance fraud.

What are the consequences if I don't mention it on my insurance application?

As soon as the insurance company finds out that you have withheld information, they can terminate your auto insurance immediately. You will then lose your right to a payout in the event of damage or an accident. The choice shouldn’t be difficult: even with a criminal record, an insurance company may still accept you, depending on the type of offense on your record. However, if you’re registered as a fraudster, no mainstream insurance company will accept you. In that case, you’ll automatically be directed to the insurance company De Vereende. This does involve additional costs, such as paying the premium in advance, a security deposit, and a higher premium.