Car insurance despite risk classificationA car is to be newly insured, you compare different rates and finally find the car insurance that suits you. But instead of the insurance number, you simply receive the message that "Your contract cannot be concluded due to a risk classification". And now you are standing there. What does this mean and why does this contract not come into effect?? What should you do now? This article deals with the risk classification and gives you tips on how you can – must – get car insurance despite being at risk.
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What does the risk classification mean?
The word alone reveals it. For one or more reasons, an auto insurance company classifies you as a risk. Several customers can fall into this category at once. You are not always at fault per se. First, know the possible reasons:
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Residence – yes, your place of residence also decides on the risk. This is especially about the regional class, which tells how high the general risk of damage is in your region. If various drivers caused accidents in the past, you will be held jointly liable as a possible new customer. After all, you too could cause or be involved in an accident. Depending on the insurance type, the risk rating now applies. If you only want liability insurance, you will not be rejected at all. The situation is different with comprehensive insurances. If vandalism damage has been reported in your region in the recent past and your vehicle is parked freely accessible on the street, you are subject to this increased risk. – Vehicle type – also the decides with the risk that the insurance company takes, if you are insured. Here, the more powerful the vehicle and the younger the driver, the higher the risk of damage occurring or being reported. An example of this could be the Ferrari in the case of an 18-year-old driver. The probability that this person loses control of the car is much higher than with a much older driver due to his inexperience. – Schufa – this is also a risk reason. If your credit check shows clear evidence of debt, the insurance company may not reject you outright, but you may be denied a particular rate because of the risk of non-payment. – Preload – at this point all the reasons related to other insurances or previous contracts come into play. If you were terminated by your old auto insurance company due to non-payment? Have you been regularly reporting damage to your comprehensive insurance company? If there was an attempted insurance fraud with a private insurance, for example private liability insurance? Insurers inform each other and in all these cases it may be that you do not get your desired tariff without restrictions.
However, the risk rating should never completely prevent you from obtaining car insurance. Car insurance is one of the compulsory insurances and you must always be offered, with very few restrictions, the motor liability in the minimum rate. Only comprehensive insurance or liability insurance with special benefits that go beyond the minimum may be rejected.
Risk classification – what to do?
First and foremost, it means for you to take a breath and not panic. Because even if all else fails, you will find a car insurance for your car and do not have to fear the lack of registration. Basically, if the cause is unclear to you, you should ask why you are rejected in this particular tariff. Because if you know the reason, you have the opportunity to act accordingly:
– Schufa – If the Schufa is the cause and the car insurance company refuses you a comprehensive insurance, you can go and agree to pay the annual amount directly. You have thus fulfilled your obligation. Can no longer default during this insurance year. At the same time you leverage the insurance company, because if you give the risk of non-payment as a reason, you take the wind out of its sails. By the way, this option is favorable, because you get a discount. – Damage potential – if the reason for the rejection is the increased number of claims in your region or regarding your type of vehicle, your hands are not tied either. There are options here:
– Other tariff – as a rule, there is already a massive difference between partial and fully comprehensive insurance. So it can be that you are directly granted the partial casco. If you still want the fully comprehensive cover, you can go and reduce the risk. – Parking location – often the rejection is due to the simple parking of the vehicle. Do you have the option to choose a secured parking space? Between "on the roadside" and "parking strip" are already huge differences. Carports, garages and private properties are of course even better. – Driver – maybe you went and specified in the insurance request not only yourself, but also other drivers. With very high horsepower vehicles, there may already be a problem in the combination with young drivers. Exclude other drivers.
You have bad cards with regard to comprehensive insurance if you yourself have already committed insurance fraud or have regularly reported damage to comprehensive insurance up to now. In the first case, companies are entitled to refer you to the compulsory tariff, and in the second case it is difficult to obtain comprehensive insurance. But here too there is an option:
– Partner – There is no rule that the insurance of a vehicle must be in the name of the person who registered or bought it. It's not for nothing that many young drivers insure their first cars through their parents or grandparents, because the no-claims class rating is much better that way. If necessary, you can also register the car through your partner. Just wait or choose a similar rate from another insurance company, as it may well be that the license plate is currently preregistered.
Risk classification thanks to pre-insurance
Completely independent of late payments, risk factors or other circumstances, the risk rating is based on previous damage reports. Many drivers rightly assume that if they have comprehensive insurance, they can report any damage to the car insurance company. Only these are recorded by car insurance companies. Pass on to other companies. So if you have regularly reported glass damage, vandalism, paint damage or similar incidents, you are considered an "expensive customer" by an insurance company. And this can have significant consequences, even if you always met your obligations:
– Cancellation – after each assumed damage, a car insurance company can cancel you. This can be done either in full, or with a reference to the fact that you can be graded to motor liability. – Change of car insurance – the best and cheapest tariff is of no use to you if the company can see that you have reported various damages in the last few years. Accidents are excluded here, if you were not the cause of the accident.
And what should you do? Basically, experts recommend to be careful when using a comprehensive insurance and not to report every claim. There are rules here:
– Up to amount of deductible – these damages should not be reported at all. You have to pay the deductible anyway, yet these damages would also be included in the file. – Partial cover – depending on your financial capacity you should not report simple damages up to 750,00 Euro. That is, you can report a glass damage with necessary replacement of the glass or a massive hail damage. The simple stone chip or a single dent, however, not. – Fully comprehensive – here the amount increases to 1.000 – 1.500 Euro. Again, if possible, only report major damage to your vehicle. Rules the repair of minor damage at your own expense.
Your advantage is simply that you do not recommend yourself as an expensive policyholder and thus a risk with an insurance company. Genuine traffic accidents are admittedly excluded from these arrangements.
Find out the risk, compare, insure
A risk rating can never prohibit you from taking out motor liability insurance, but it still makes it harder to get into one of the comprehensive insurance policies. Nevertheless, here are good chances of a conclusion, if you know the risk reason and act accordingly. If you are rejected for comprehensive insurance because you have frequently reported damage in the past, agreeing to a higher deductible can help you to obtain car insurance despite your risk rating.