Driving is a dynamic activity and is seen differently by many motorists. Many drivers focus on playing it safe on the road and maintain a defensive approach. Some others don’t really care about getting into a crash/violation every now and then.
Insurance companies are aware of differences in driving patterns and how it could result to increased premium claims. Based on this, a lot of policy providers reserve the right to refuse covering a particular driver deemed “high-risk”.
For those who don’t know who a high-risk driver is, here’s a simple breakdown for you.
A high-risk driver is a motorist with a greater chance of getting involved in a car accident or violation of state regulations. Such drivers are also more likely to file a claim for auto insurance than a regular driver.
Based on the numerous red flags linked to high-risk insurance, many companies are reluctant to offer cover. But not all refuse such drivers insurance.
A lot of companies have a cover package generally referred to as high risk auto insurance. There’re several differences from this insurance policy to regular packages, so be ready for whatever comes with your high-risk status.
In many states, car insurance for military veterans waives credit history as a worthy criterion for providing cover to ex-servicemen. Military vets aren’t considered high risk in most states.
What is High Risk Auto Insurance?
High-risk auto insurance is a policy reserved for drivers with a greater chance of engaging in traffic violations or serious accidents.
Numerous policy providers will likely refuse to cover such drivers, but a handful of companies still offer this service.
How to Find Cheap High Risk Auto Insurance
Check Out Your Options
The best way to find budget rates for high-risk auto insurance is by searching through several options. A lot of companies offer differing rates based on the various premium calculation methods they employ.
Lower Your Risk Factors in Other Ways
Numerous sites offer quotes which help, but what you should focus on is lowering your high-risk status considerably. With the three factors checked out below, you can comfortably move to regular insurance packages in due course;
Although insurers are restricted from calculating drivers’ premiums with their credit history in some states, many more states approve.
Your credit history has to impressive if you stand any chance of getting a good deal for high-risk auto cover. Also, insurers will likely rely on this info to calculate future rates if your credit remains healthy.
So before heading out on a hunt for a cheap high-risk auto cover, make sure there’re no bad debts lingering around your purse.
Driving Classes (Post-Violation)
After a violation, it’s an excellent way to lower your rates through getting registered for a driving class.
When the class is over and you have proof of attendance, policy providers may not consider you a high-risk motorist.
With good grades as a young driver, there’s a high chance you’ll get reductions in your premiums through discounts. Good grade discounts are popular in many US states. These discounts regularly offer up to 25% discounts on premiums with other benefits.
What Determines If You Are a High Risk Driver?
A Stained Driving Record
If your driving history has too many accidents/traffic issues in-between, many auto policy providers will rate you high-risk.
In many states, there’re regulations determining the number of years a driver’s history would count. A lot of insurers also put this benchmark around 3 – 5 years.
But just to be safe, it’s better to have a clean record. Some states allow insurers look up around a decade or more before providing insurance.
Drivers within 16 – 25 are considered high-risk across many insurance companies. These providers believe younger drivers just don’t have what it takes to avoid involvement in an accident for long periods.
Drivers with less than 6 months driving experience are mostly considered high-risk by many auto policy providers.
Over 70yrs Motorists
Senior citizens are seen as high-risk based on their demographic association to lower motor functions, reduced eyesight, reflexes, etc.
Using a High-Risk Car
Sports cars, luxurious vehicles, and high-end automobiles, are all ranked high-risk by many auto providers.
In most cases, policy providers consider the cost of repairs in tagging such vehicles high-risk. Others tag higher performance over other cars as a higher chance of these vehicles getting damaged.
Violations come in varying forms and differ from state to state. But there’s a consensus among US states that the following are serious traffic violations;
- Fatality-linked violation
- Driving with no license
- Offensive driving
Also, many states across the US have a special designation for DUI drivers. In most states, a DUI which results in a fatality could rank a driver as high-risk for 75 years.
It’s not so difficult to get auto cover as a driver many companies may not want to cover. All you have to do is get access to correct set of info. And most essentially, try to work your way into becoming a regular driver sooner rather than later.