Topics for High Risk Drivers
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High risk drivers usually have to pay more for their auto insurance. However, if you do a little research you can probably find ways you can save on your insurance bill. Information about how a company sets rates for high risk auto insurance can help you make your decision.
How Risk is Determined
Insurance companies use several factors to classify drivers according to risk:
- Individuals with a DWI or DUI on their record will immediately be placed in a high risk category.
- Carrying car insurance continuously over a period of years is a good thing and counts in your favor; having gaps in service counts against you.
- Teenagers buying car insurance are a greater risk than adults, so young drivers will almost always pay more.
- First time drivers will always pay more for coverage, regardless of their age.
- Men are greater risk than women and city people a greater risk than country people.
- Tickets and accidents will increase your rates, even if the accident is not your fault. Speeding tickets are especially problematic and indicate to the high risk car insurance company that your chances of being involved in a traffic accident are much greater. Being in a number of accidents, even if none of them were your fault, suggests you might be a reckless driver.
- It might seem unfair, but your credit history influences other areas including insurance. Drivers with poor credit ratings file more claims, and companies will use a person's poor credit rating to classify the driver as having a higher risk.
Assigned Risk Car Insurance
Assigned risk auto insurance is a type of coverage that can be useful to many
high risk drivers. This type of coverage can be purchased when a driver is in a high risk group, such as teenagers, even if they do not have a bad driving record.
This section discusses assigned risk insurance in detail.
SR22 Auto Insurance Coverage
An SR22 car insurance requirement is usually put on a driver by a court after a serious
violation. This may include a DWI/DUI, driving without proper insurance coverage, multiple minor moving violations, or reckless driving. This section explains what
an SR22 insurance policy is, how it works, and where you can get one.
Bad Credit and Auto Insurance Risk
Bad credit and car insurance are a combination that do not generally work well for
drivers. Bad credit can raise your rates significantly and may even make it harder to find coverage at all.
If you do not know what your credit rating is, there are ways you can find out for a fee. You may even be able to get a free copy of your credit report and see your
total credit score. If you have been turned down for credit recently, you can request a free credit report from one or more of the three major credit reporting companies
(Equifax, Trans Union and Experian.)
Lowering Your Risk and Your Rates
You can work towards getting yourself out of the high-risk category by doing things like cleaning up your driving record and paying your bills on time. Some factors will change over time.
If you drive with no points on your license for three years or more, the insurance company will consider you a good risk. If it has been three years, contact your insurer and ask them to take you out of the high risk auto insurance category.
What else can you do to cut high risk auto insurance costs? You could drive an older model car or maybe you could opt out of your
collision and comprehensive coverage.
You can find information about high risk auto insurance companies in your area online. It makes sense to get a few quotes and compare them so you can get the best buy. Our online service can help you find high risk car insurance in your area of the country.
If you are a high risk driver and your record is improving or you have only one high risk factor (two tickets and perfect credit), you should contact your agent to see if you might qualify for lower rates. Remember having to get high risk car insurance is not necessarily a permanent condition. Don't give up!
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