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Some reasons for denying insurance are temporary. If a driver gets several speeding tickets or is involved in an accident, the insurance company may allow the driver to purchase insurance again after a few years. The driver may also be able to take traffic school courses to remove violation points from his license. The amount of time before an auto insurance company no longer considers an old accident when it decides whether to insure a driver varies by insurer.
An insurer can refuse to insure a driver because of mileage restrictions. If the insurer sets a maximum mileage on its policies, such as 30,000 miles per year, a pizza delivery driver or a taxi driver does not qualify for insurance from the company. High risk auto insurers may write a policy for people who do these jobs at a higher price.
States establish programs to make sure that a driver who qualifies for a driver's license can get insurance coverage. States often form partnerships with insurance companies to spread the burden of insuring high risk drivers across all insurance companies
in the state. The state may also subsidize these high risk insurance policies. A state program is often limited to residents of the state.
An insurer can refuse to write a policy because one member of the household is a high risk driver. According to the Ohio Department of Insurance, the insurance company expects members of a household to share their cars with family members. Another family member may have to purchase a policy that excludes coverage for the high risk driver, and the high risk driver can buy a separate high risk auto insurance policy.
High risk insurance is necessary for some types of cars. An insurer may not want to take the risk of insuring a luxury car, especially if it is a sports car that can operate at high speeds. An antique car, such as a Model T, may also be very valuable. There are some high risk insurers who specialize in offering coverage for cars that other insurance companies won't insure. High risk auto insurers can also offer a higher amount of auto insurance coverage than the minimum limits state laws require.