Must-read for car owners: Can you still buy car insurance if you've made a claim before?

Accidents are unpredictable, which is why the insurance industry was born. However, insurance companies can also refuse coverage based on past accident claims. As a car owner, how should you deal with the relationship between claims and refusal of coverage? The following points will help you clear up your worries

The relationship between insurance companies and policyholders

Before we can understand why we might or might not be denied insurance, we must first understand the relationship between the insurance company and the policyholder

Life is full of unexpected events, collectively known as risks. Sometimes they are harmless, but there are always times when they cause us losses. Financial losses are minor, but human lives are a major concern. Therefore, society has found a way to deal with risks: insurance. Simply put, by purchasing insurance, we transfer the risks we may face in the future to an insurance company, and the terms agreed upon by both parties, namely the policy, define the scope of coverage and responsibilities

Insurance companies provide risk-bearing services, promising protection for policyholders in the event of an accident. Car owners naturally have a responsibility to build and maintain trust. Failure to provide accurate driving records, or failure to notify the insurance company of vehicle modifications, can cause your car insurance to lapse after purchase. Similarly, if factors prevent the establishment of this relationship during the application or underwriting process, the policyholder may be refused coverage; past claims history is a major factor in such refusals. Car insurance policies for high-risk industries often come with additional clauses

If you work in an industry that involves or increases automotive risk, the insurance company must carefully review each policyholder's situation before making a decision on whether to underwrite. If the insurance company believes that the policyholder can still be insured, but due to the risk factors of the car owner's occupation, in addition to potentially increasing the insurance surcharges and deductibles, there is also a possibility of including additional terms in the policy, such as driving outside of working hours or in the early morning

The severity of the accident and the amount of compensation claimed are key factors in rejecting insurance policies

Insurance companies consider the insured's past driving record. If the record is poor and cannot be compensated for with higher premiums, the insurance company has the right to refuse coverage. Refusal of coverage is affected by the severity and frequency of the accident. If the car owner is found to have a history of multiple serious violations, even those resulting in death or injury, such as driving under the influence of drugs or alcohol, or dangerous driving, the premium may increase, or even the policy may be refused coverage. Generally speaking, claims under HK$30,000 are unlikely to be grounds for refusal of coverage

It is difficult to get insurance again after being rejected for it before

Generally, insurance companies will verify that a car owner has not been refused insurance or had their policy terminated within a certain period of time when the owner applies for insurance. If a car owner does encounter such a situation, it will be difficult to find an insurance company to underwrite the policy. In this case, the car owner must negotiate with each insurance company individually, hoping to persuade them to underwrite the policy by significantly increasing the premium. It should be noted that this situation is usually very special

In conclusion, by the time a car owner is denied insurance, it may be too late. Therefore, it's not just about whether or not insurance will be granted; for your own safety and the safety of other road users, the best course of action is to remain vigilant while driving and try to avoid traffic accidents

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