Are you having a hard time finding insurance for your home or vehicle? Several factors may explain this situation.
With this article, Assurances Multi-Risques hopes to help you better understand this issue and offer you advice so that you can remedy your situation! So fear not—there are solutions!
Factors explaining why insurers have turned you down
Has bad luck been plaguing you in recent years? A broken windshield on your car, water damage in the basement, a fender-bender, and a fire in your kitchen caused by your son’s carelessness in preparing a late-night snack? You subsequently had to file several claims with your insurer because, of course, you were unable to pay for all of these damages yourself.
Once the storm had subsided, you decided to trade in your car for a new one, but your insurer told you that they wouldn’t insure you. Firstly, AMR empathizes with you and wants you to know that you’re not alone in this uncomfortable, and quite frustrating, situation.
What you need to understand is that your insurer made this decision because they have a duty of care towards their clients, meaning all their company’s policyholders. This means that every insurer has a duty to wisely manage the premiums that are paid to them annually so that they can control their expenses and, thus, be fair to all their clients.
Therefore, if your insurer believes that your frequent claims are negatively impacting their ability to be fair, they will be forced to refuse to cover you. Nowadays, thanks to technology, insurance companies have access to a great deal of reliable statistical data and can use advanced software programs that allow them to evaluate the risk factors associated with your file, as well as the probability that they will have to pay out for another claim.
N.B.: The risk threshold deemed acceptable varies from one insurer to another depending on the size of the business and its value.
Other factors affecting your ability to get insured
A high claim frequency is one of the main reasons that people are refused insurance. But several other reasons can explain why someone is having trouble getting insured! Among the most common factors are:
Lapse in insurance coverage (you were uninsured for a period of time)
If one or more of these examples applies to you, here is some advice that could help you stabilize your situation with regard to home, automobile or business insurance.
First, contact an independent insurance broker, who works with many insurance providers, including several working in the non-standard market, so that they can find insurance for you as quickly as possible. You wouldn’t want to exacerbate your situation by being uninsured!
Always tell the truth to the insurance agent or broker that you do business with, because deliberately omitting information or lying will only do you more harm! Believe us, “There are no secrets that time does not reveal”! (Racine)
Don’t wait until the last minute to begin your insurance shopping process and be prepared. Too many people downplay the purchase of insurance, but very often insurance will keep some people from having to file for bankruptcy after an incident!
Avoid reducing your coverage to the minimum required, even if it affects your premiums. It’s a bit like not playing an “extra” number when you buy a lottery ticket and ending up losing just because you wanted to save a few cents. That would be a real shame!
Lastly, choose a broker who you can trust and who you feel comfortable with. Personalized advice makes all the difference!