Background

Why do insurers refuse your application for auto insurance?

Insurers may decide for themselves which risks they accept. Indeed, in the Netherlands, insurers do not have a general underwriting requirement for car insurance (unlike, say, health insurance).

Below is a list of factors that often lead to denial of auto insurance:

1. Negative claims history or many claims

If you have claimed damages multiple times or have had recent claims, insurers’ confidence dwindles. This can lead to your application being rejected. Insurers compare you to statistics: those who have more frequent claims represent a higher risk.

2. Registration in the CIS or other databases.

Insurers have access to data from external registries such as the Central Information System (CIS) Foundation and Roy-data. A negative or confidential registration in CIS can be a strong barrier. This may be due to:

• Default or non-performance of contractual obligations
• Fraud or deception
• Driving Disqualification
• Uninsured damage (guarantee fund notification).
• Confidential comments (VM) or EVR (External Referral Register) registration.

3. Late payments

If you have paid premiums late in the past, left bills unpaid or have a problematic payment history, this arouses distrust among insurers – your profile poses a risk. Some insurers will then apply stricter conditions, such as payment in advance or a deposit.

4. Criminal record or driving disqualification.

A criminal record or previous driving disqualification (such as from drunk driving or serious traffic offenses) may cause insurers to refuse your application. Even if the criminal offense is not directly related to driving, it can aggravate your risk profile in the eyes of the insurer.

5. Type of car, power or technical characteristics

Some vehicles are considered too risky by insurers, such as sports cars, exclusive cars, vehicles with special modifications or expensive parts. In addition, factors such as susceptibility to theft (zip code, security) may come into play.

6. Age, experience level and residential location.

Young drivers (or just older drivers) with little driving experience may be seen as riskier. Your hometown may also come into play: areas with a high risk of theft or vandalism are often assessed more strictly.

7. Incorrect or incomplete information

If you conceal information during the application, fill in incorrectly or are not transparent about your past, it can lead to rejection or even subsequent suspension or cancellation of the policy. Insurers place a high value on integrity in the underwriting process.

Specifically, insurers have freedom to choose whom they accept, as long as they abide by laws and regulations.

Can an insurer just refuse you?

In the Netherlands, you are not required to have car insurance with a specific company, but you are required to have at least third-party insurance if you drive your own vehicle on the road.

According to compulsory third-party insurance, owning a motor vehicle (in the Netherlands) is linked to the obligation to take out that insurance. Therefore, you cannot legally drive without insurance. That legal obligation means that your vehicle must stay off the road if you do not have insurance that is accepted.

Right to justification

If your application is denied, the insurer has a duty to inform you why. This is customary part of insurers’ code of conduct. So you may ask, “Why was I denied?” so you know what barriers to remove.

What can you do after your application is denied?

If your application has been rejected, there are still several paths you can take to still get insured. Below we cover the main strategies.

1. Ask for an explanation and verify the rejection for your auto insurance policy

• Ask in writing or by e-mail for the cause of the refusal.
• Check if the reason is justified, for example, an incorrect report in CIS.
• Ask if there are additional documents you can provide to clarify your situation.

2. Make an inspection and correction request to the CIS Foundation.

If the CIS registration is the root of the problem, you can:

1. Submit a request for inspection to see what data has been recorded about you.
2. Check that this registration is justified (errors do occur).
3. If there is incorrect information, submit a correction request to CIS or to the insurer that made the registration.

Note: CIS itself may not change the data; that is the responsibility of the insurer who supplies it. If the correction request is rejected, you can file a complaint with Kifid (Financial Services Complaints Institute) or consider legal action.

3. Apply for auto insurance with another insurer

Each insurer has its own underwriting policies. A rejection with one does not automatically mean rejection the other. Therefore, use comparison tools to compare multiple insurers.

4. Choose insurers with wider underwriting or alternative policies for your auto insurance policy

Some insurers or companies dare to take on risks where the mainstream market is reluctant. A well-known example is De Vereende, which is often used for cases that mainstream insurers refuse.

Key features at De Vereende:

• The premium is often higher than with regular insurers.
• An upfront payment is often required (e.g., first three months).
• Sometimes a security deposit must be deposited to serve as security.
• Each application is reviewed individually.
• The Vereende does not provide provisional coverage; only after acceptance and payment is the insurance active.

While not a cost-effective solution, this route can still give you insurance coverage when others refuse.

Want to know what approximately your premium is going to be with the Vereende? On geennee.nl you can get an indication of the premium your car insurance.

5. Allow time and improve your profile

Some barriers you can remove over time:

• Pay off outstanding debts or premiums
• Let your claim-free years quietly rise positively again
• Avoid traffic violations or criminal offenses
• Wait a certain period of time (e.g. 1 – 3 years) before applying again

This strategy requires patience, but is often the most sustainable path back to “normal” insurability.

What does this mean to you?

A refusal is frustrating, of course, but it’s important to know that there are always follow-up steps available. Whether it’s a misunderstanding in your registration, a temporary increased risk or simply a breakdown year – there are ways to improve your situation or still get insured on the road.

So don’t let yourself off the hook. Inform yourself well, possibly seek help from a party like geennee.nl and keep working on your insurability. With the right approach and sometimes a bit of patience, you will usually still find a suitable solution. A refusal is not an end station, but a detour on the way to a new start.