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What To Do If You Can’t Get Car Insurance

Finding reliable car insurance can be frustrating for anyone. After the carrier who offered your best option for auto insurance denied your application, it can be hard to decide what to do next — but there’s still hope.

Car insurance companies want to insure people whom they think are low-risk. The factors that determine your risk can be improved over time. And some companies are more willing to insure riskier policyholders. If the first or second provider doesn’t work out, you still have plenty of options. Here’s what you can do to find coverage now.

In this article

Why some insurance companies deny applications

Car insurance providers favor people who the provider thinks are less likely to file a claim. To decide who these drivers are, car insurers factor in information like driving record, credit history, age, location and more.

You can affect some factors, but others are beyond your control. If your application was denied, the insurer might not tell you why. But you can always call and ask. Here are a few of the reasons why some car insurance companies commonly deny applicants:

  • Driving record: If you have moving violations or at-fault accidents on your record, it will affect your car insurance cost. If you’ve experienced many violations or accidents, then some car insurers may deny your application.
  • Location: Car insurers commonly draw on location-based crime statistics to determine risk in a policy. If you live in an area that experiences high levels of property crime, such as theft or vandalism, then the insurer may be less willing to insure your vehicle.
  • Previous lapse in coverage: A red flag car insurers commonly look for is a lapse in coverage. If you’ve allowed your car insurance to expire in the past without getting a new policy, it could make it more difficult to find insurance.
  • Credit history: Some car insurers may deny applicants who have a spotty credit history. The insurer could use this as an indication that you have trouble keeping up with monthly payments.
  • Type of car: If you have a car model that’s known to be dangerous on the road, it could make car insurers wary. Some car insurers might stay away from insuring certain types of cars.
  • Outside coverage area: Many car insurers only offer coverage in certain states or areas. If you live outside the insurer’s area of coverage, they won’t be able to provide you with insurance.

[ Read: Non-Owner Car Insurance: What Is It and Who Needs It? ]

What to do if your car insurance application was denied

Having a car insurance application denied is never fun. But it’s not the end of the road. It’s always a good idea to ask why you were denied so you can get an idea of how to improve your profile for future applications. If you’re having trouble finding traditional auto insurance, here’s what to try next.

Short-term options:

  • High-risk car insurance: Some insurance providers offer policies specifically catered to high-risk drivers. If your preferred carrier won’t cover you, a high-risk provider might be able to help. Keep in mind these policies can be more expensive than standard policies.
  • State-run high-risk insurance: Some states have insurance pools for drivers who can’t find insurance with a regular provider. For example, Maryland Auto Insurance is state-run insurance for Maryland drivers who can’t find coverage elsewhere.
  • Family member’s insurance policy: If you can’t find insurance, a family member might be able to add you on to their existing insurance policy. Many providers only allow this if both people live at the same address. But some make exceptions for college students.

[ Read: The Simple Guide to Car Insurance ]

Long-term options:

  • Improve driving record: If you can stay accident- and moving-violation free for a year or more, it could improve your chances of qualifying for standard auto insurance.
  • Improve credit score: If you can boost your personal credit by paying off debt and staying on top of your monthly payments, then it could also help you find auto insurance from a standard provider.
  • Check again in six to 12 months: Companies often shift their guidelines, and your chances of getting approved could change in the future. After six months or a year apply again.

Where to get car insurance when standard companies won’t insure you

People often ask, “can car insurance companies deny coverage?” And unfortunately, they can. If the standard car insurance carriers are not doing the trick, there are high-risk insurers who can help. If you get approved for high-risk insurance, it will probably be more expensive than a standard policy. Here are a few places to try:

[ Read: What’s the Average Cost of Car Insurance In the U.S.? ]

  • State Farm: This well-known provider offers car insurance policies of all kinds, including policies for high-risk drivers. They also have many discounts available, which could offset the generally higher cost of coverage.
  • The General: This provider has specialized policies just for high-risk drivers. If other companies deny you coverage, this company should be able to help. You can even get a quote through their website.
  • Bristol West: This provider is run by Farmers Insurance, and Bristol West had dedicated policies just for drivers who’ve been denied by standard providers due to a driver’s higher risk.
  • State-run insurance pool: If no private insurers will agree to give you coverage, check to see if your state offers an insurance pool for high-risk drivers. This is generally the last option to try.

How to get better deals on auto insurance

If your monthly insurance premium is high, there are many ways to offset the cost. Most car insurance providers offer discounts for a variety of things, and it’s always worth a phone call to see what you might qualify for.

[ Read: How to Switch Car Insurance Companies ]

A few of the most common discounts include a bundling discount for multiple policies such as combining car and home/renters insurance, a discount for setting up auto-pay, a loyalty discount for using the provider for a certain amount of time, and a paperless discount for having your policy and payment details emailed to you.

Another option is shopping around for a new car insurance provider. Getting quotes is now fast and easy using provider websites or a mobile app. Many of the larger car insurers have online quoting tools that you can use to get a quick estimate of how much your monthly premium will cost.

Too long, didn’t read?

If your insurance application was denied, call the company and ask an agent what you can do. You may be able to better your chances by driving safely and improving your credit score. But if you can’t find a standard car insurance policy, some car insurers offer high-risk policies, and some states have their own insurance pools for high-risk drivers.

We welcome your feedback on this article. Contact us at inquiries@thesimpledollar.com with comments or questions.

Source: thesimpledollar.com

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Best credit cards for grocery shopping

Americans spend on average $4,464 in groceries every year, according to the U.S. Bureau of Labor Statistics. Shopping for groceries is one of the main weekly expenses in every American household.

That’s why the credit cards tying reward points to grocery shopping are getting more numerous and their offers are getting increasingly more competitive. In 2020 you have a whole new lineup of cards ready to reward you for the purchases you make at grocery stores.

Here are the best cards whether you like those premium rewards, are an everyday shopper, are building credit, you’d rather skip the prep and go straight to the meal or you like to buy groceries at superstores.

See related: Best cash back cards

American Express® Gold Card: Best for earning Membership Rewards points on groceries

Amex Gold gives you an unprecedented rewards rate whether you’re dining in or out. If that weren’t enough, paying at certain restaurants (see terms for qualifying merchants) after enrollment can get you up to $10 a month in statement credit. You also get up to $120 in Uber Cash every year ($10 per month) that can be applied to Uber Eats orders – a big plus for those who order their groceries through the platform.

The intro bonus of 60,000 points when you spend $4,000 in the first six months is excellent, and there are many redemption options, including gift cards, merchandise and travel with no blackout dates.

You also get up to $100 every year in airline fee credits (offer ends Dec. 31, 2021), which you can use to pay for things like baggage fees or upgrades – and in some cases, even airline gift cards.

American Express® Gold Card should appeal to frequent ride-share users and takeout lovers alike. Cardholders enjoy $120 in Uber Cash each year, which can be used for Uber rides, Uber Eats delivery and more. Enroll by Dec. 31, 2021 and you’ll also get a complimentary Uber Eats Pass membership for 12 months, which comes with discounts and $0 delivery fees on eligible restaurant and grocery purchases.

The card charges an annual fee of $250, but if you take advantage of both the Uber Cash and the dining credit, keeping the Amex Gold card will essentially cost you $10 every year.

If you are OK with only redeeming travel directly through Amextravel.com or Amex’s airline partners to maximize the value of the Membership Rewards points you’ll earn, this is a great card for foodies and travelers.

Here’s a closer look at the features:

  • 60,000 American Express Membership Rewards points when you spend $4,000 in the first six months
  • 4 points per dollar spent at U.S. supermarkets on up to $25,000 per year in purchases – 1 point thereafter
  • 4 points per dollar spent at restaurants worldwide (including Uber Eats orders)
  • 3 points per dollar spent on flights booked directly through airlines or on amextravel.com
  • Up to $120 annual dining credit (up to a $10 statement credit monthly) when you pay at Grubhub, The Cheesecake Factory, Ruth’s Chris and participating Shake Shack locations (enrollment required)
  • Up to $120 in Uber Cash per year ($10 per month)
  • Up to $100 annual airline fee credit (valid through Dec 2021)
  • No foreign transaction fees

Even though it has fewer features than the Amex Gold, it gives you perhaps the highest cash back rate available on groceries, and it has a lower annual fee – $95. Plus, running errands like groceries is way easier when you get cash back on gas for the commute. Take a closer look:

  • $250 statement credit when you spend $1,000 in the first three months
  • 6% cash back at U.S. supermarkets on up to $6,000 in purchases per year, then 1%
  • 6% cash back on select U.S. streaming services, such as Netflix, Hulu or HBO Max
  • 3% cash back at U.S. gas stations
  • 3% on transit purchases
  • 1% cash back on all other purchases

Chase Freedom Unlimited®: Best for earning cash back on groceries and everything else

For those who don’t want to have to choose a spending category but still want no annual fee, Chase Freedom Unlimited offers a consistent rate of at least 1.5% cash back on all purchases.

  • 5% cash back on travel through Chase Ultimate Rewards
  • 3% cash back on dining and drugstore purchases
  • 1.5% cash back on all other purchases
  • $200 bonus if you spend $500 in the first 3 months
  • Cash back rewards do not expire
  • No annual fee

Target REDcard™: Best for earning cash back on Target purchases

The Target Redcard has no annual fee. This, combined with its standard offer of 5% off in-store purchases applied right at the checkout counter and 5% off at Target.com with free shipping, makes it a great card for frequent Target shoppers, especially since the 5% discount is applied in perpetuity. You can also stack your discount with others available through Target’s Cartwheel app and in-store.

Though most people don’t need 120 days to return an item, you get that with this card when its extra 30 days is combined with Target’s standard 90-day return policy. The extra time could allow a greater piece of mind on those large ticket items you buy.

However, if you’re known to carry a balance, this isn’t the right card for you. The high variable APR can far outweigh the 5% discount, so pay the card off after each billing cycle.

Here’s a snapshot of all the benefits of this card: 

  • 5% off eligible Target purchases in-store and online at Target.com (except pharmacy purchases)
  • Can be used together with Target Circle and other discounts
  • Free two-day shipping on orders from Target.com with no spending minimum
  • An extra 30 days to return items on top of the standard 90-day return policy
  • Early access to special events, products and promotions
  • No annual fee

This card is great because, unlike Target’s Redcard, it offers some cash back outside of Walmart purchases, including 2% cash back at restaurants and travel and 1% cash back on all other purchases.

However, while Target’s Redcard offers its in-store 5% discount with no limit, the Capital One Walmart Rewards Mastercard only offers the same discount in-store for the first 12 months and you have to use Walmart’s mobile wallet on your purchases to get it.

Where this card really shines is online, especially if you do a lot of grocery pickup or delivery orders from Walmart.com.

It’s very easy to apply for and, like the Redcard, it carries no annual fee, as well as some smaller benefits you’ll see below:

  • 5% cash back on Walmart purchases online, including grocery and delivery orders
  • 5% cash back on in-store purchases in the first year when you pay using the Walmart Pay digital wallet
  • 2% cash back on restaurant and travel purchases
  • 1% cash back on all other purchases
  • No annual fee or foreign transaction fee
  • Easily apply via text message
  • Card is automatically transferred to Walmart Pay digital wallet on approval
  • Fraud alerts and the ability to freeze your account

Comparing the best cards for grocery shopping

Card Grocery bonus Other rewards Annual fee
American Express® Gold Card 4 points per dollar spent at U.S. supermarkets on up to $25,000 per year in purchases – 1 point thereafter

 
  • 60,000 American Express Membership Rewards points when you spend $4,000 in the first six months
  • 4 points per dollar spent at restaurants worldwide (including Uber Eats orders)
  • 3 points per dollar spent on flights booked directly through airlines or on amextravel.com
  • Up to $120 annual dining credit (up to a $10 statement credit monthly) when you pay at Grubhub, The Cheesecake Factory, Ruth’s Chris and participating Shake Shack locations (enrollment required)
  • Up to $120 in Uber Cash per year ($10 per month)
  • Up to $100 annual airline fee credit (valid through Dec 2021)
 $250
Blue Cash Preferred® Card from American Express 6% cash back at U.S. supermarkets on up to $6,000 in purchases per year, then 1%
  • $250 statement credit when you spend $1,000 in the first three months
  • 6% cash back on select U.S. streaming services, such as Netflix, Hulu or HBO Max
  • 3% cash back at U.S. gas stations
  • 3% on transit purchases
  • 1% cash back on all other purchases
 $95
Bank of America® Cash Rewards credit card 2% cash back at grocery stores and wholesale clubs
  • $200 in online cash rewards when you spend $1,000 in the first 90 days
  • 3% cash back on a category of your choice (gas, online shopping, dining, travel, drugstores or home improvements and furnishings)
  • $2,500 combined quarterly limit on 2% and 3% cash back categories
  • 1% cash back on all other purchases
 $0
Chase Freedom Unlimited® n/a
  • 5% cash back on travel through Chase Ultimate Rewards
  • 3% cash back on dining and drugstore purchases
  • 1.5% cash back on all other purchases
  • $200 bonus if you spend $500 in the first 3 months
 $0
Capital One® Savor® Cash Rewards Credit Card 2% cash back at grocery stores
  • 8% cash back on tickets through Vivid Seats (offer ends January 2022)
  • 4% cash back on dining and entertainment
  • 1% cash back on other purchases
  • $300 bonus if you spend $3,000 in the first 3 months
 $95
Target REDcard™ 5% discount at Target and Target.com n/a $0
Capital One® Walmart Rewards® Mastercard®
  • 5% cash back on in-store purchases for the first 12 months when using Walmart Pay
  • 5% cash back on Walmart.com purchases, including grocery pickup and delivery orders
  • 2% cash back on in-store Walmart purchases after the introductory period
  • 2% cash back on restaurant and travel purchases
  • 2% cash back on the purchase of gift cards at Walmart (online, app, Walmart Pay or in stores
  • 1% cash back on all other purchases
 $0

Honorable mentions

There is no shortage of credit card options that reward grocery spending, so in addition to our top picks above, consider these alternatives.

  • Capital One SavorOne Cash Rewards Credit Card – A no-annual-fee alternative to the Capital One Savor Card, the SavorOne offers the same 2% cash back on grocery store purchases. While it offers a slightly lower rate on dining and entertainment than the Savor card, the SavorOne is a good alternative for those wary to pay an annual fee.
  • U.S. Bank Altitude Go Card – The newly launched U.S. Bank Altitude Go Card offers a competitive rewards rate on both dining and grocery purchases – 4 points per dollar on dining and food delivery and 2 points per dollar on groceries, to be exact. It also offers 2 points per dollar on gas and streaming service purchases and 1 point per dollar on everything else. Plus, it doesn’t charge an annual fee.
  • Amazon Prime Rewards Visa Signature card – If you prefer to do your grocery shopping at Whole Foods, you can’t beat the rewards rate on the Amazon Prime Rewards Visa Signature card. In addition to 5% cash back on Amazon.com purchases, the card offers the same 5% rate at Whole Foods locations. You’ll also earn 2% back on restaurant, gas station and drug store purchases and 1% on everything else. You have to be a Prime member to qualify for the card, but if you spend a significant amount on Amazon orders or at Whole Foods, your rewards can help offset the cost of membership.
  • Apple Card – The Apple Card is best known for its high rewards rate on Apple purchases, but it can also be a great choice for grocery shopping. When you make a purchase via Apple Pay, the card offers 2% back on all qualifying purchases. This is on par with some of the highest flat-rate credit card offers. Just make sure your preferred grocery story accepts the mobile wallet before you work this card into your rewards strategy.

How to pick the right card for grocery shopping

For most of us, using a credit card at a grocery store simply involves taking it out in the checkout line. But if you want to up your grocery shopping game and save some serious money, here are some tips and secret strategies from credit card experts and the most seasoned shoppers we could find.

When picking the credit card you’ll use at the grocery store most experts recommend either a card with a high cash back rate that can provide a percentage off every time you shop or a tiered rewards card that offers specific rewards every time you use it for groceries.

“When you use a cash back card, it’s like having a coupon to save a certain amount off your total purchase each and every time you buy groceries. This savings isn’t limited to grocery stores – a flat-rate rewards card will apply the same cash back or miles to all of your purchases,” says Ashley Dull of CardRates.com.

However, if you’re picking a tiered rewards card with a grocery store category, they often have a limit on how much you can earn annually.

For example, American Express limits the 6% cash back rate spent at U.S. supermarkets annually on its Blue Cash Preferred Card to $6,000 in purchases (after that, it’s 1%), so be mindful of those restrictions.

Apple Card gives you cash back every day.

You also want to pick a card where rewards don’t expire, there are multiple options for redemption and you can transfer rewards between accounts. Always keep track of the terms of your credit card and compare card features vigorously before making your final selection.

How to earn the most rewards while grocery shopping

If you really want to maximize your rewards at the grocery store, stack your savings with a cash back app such as Ibotta, Fetch Rewards or Checkout 51. Your grocery store’s loyalty app is also a great way to double-dip on savings.

“By taking a few minutes to scan in your grocery receipts, a family of four can easily earn over $25 a month in rewards,” says Nermeen Ghneim of The Savvy Dollar personal finance blog.

Finally, if you’re choosing a store-branded credit card because you tend to shop at the same store all the time, make sure you pay off the balance before the billing cycle resets because store cards tend to have very high interest and fees.

“Many people know that making a habit of paying off high interest credit cards will actually have a slightly negative effect on their credit,” says Dan Gallagher, author, retired financial planner and personal finance expert at ScoreSense.com. “But some grocery credit cards are in-house credit extensions, especially the ones that are valid in-store only. The in-store-only variety does not harm your score for avoiding interest and paying balances off early, so do not fear a grocery store credit card.”

*All information about the Capital One Savor card has been collected independently by CreditCards.com and has not been reviewed by the issuer. 

Source: creditcards.com