High Risk Auto Insurance

Reader’s Question:

My son got his first car from his company as bonus for a job well done. I want to give him some lessons on how to avoid being categorized for high-risk car insurance. So how to avoid being considered high-risk motorist?

Miguel

Albany NY

It is not really totally bad to be put in the high-risk car insurance group. Our first impression of high-risk motorists is of those reckless drivers or drunk driving, which is true. But there re also innocent people that are considered for high-risk car insurance for the following reasons:

1. Age can be a liability when getting a car insurance. If you are teenager, insurance providers will consider you high risk. Or, if you are 70 years old and above already, you are considered high risk too. But you can always find ways to minimize your insurance premium:

2. Bad credit history can mean bad evaluation for your car insurance application. You can automatically be considered for high-risk car insurance as statistics showed that there is high rate of claims for policyholders with bad credit record.

3. But those drivers that have history of having their licenses revoked or suspended are the ones who will have much harder time in getting an insurance coverage. They will need a SR22 insurance certificate for them to reinstate their licenses. Avoid having this in your record.

Reader’s Question:

I love sports cars but I have read often that they are very expensive to insure. What tips can you give me that I can do in order to acquire a cheap sports car insurance policy in Ohio?

Charlie

Columbus OH

Your insurance policy for sports car shouldn’t be the cause of the depletion of your finances. Although sports car insurance coverage is naturally more expensive than ordinary car insurance policies, there are ways that you can do to get a cheap sports car insurance. Like getting an ordinary car insurance, you can get a cheaper insurance for your sports scar by reducing the risks that your vehicle will be lost, stolen or damaged.

Naturally, assuring car insurance companies that you can drive safely under any conditions will get you your needed cheap sports car insurance. Usually, especially for young or new drivers, you can get discounts on car insurance policy when you attend defensive driving programs recognized by many car insurance policies.

Anti-theft devices built with your sports car will lower the risk of your vehicle being stolen or lost, thus, your chances of having a cheap sports car insurance policy are higher. We all know that sports car attracts attention to people, most especially to thieves. So it is advisable, and insurance companies appreciate it, if your car is built with anti-theft devices such as locks, immobilizer, and even a GPS tracker.

Additionally, car insurance companies will appreciate it if your sports car is built with safety features to protect you and your passengers from injuries during accidents, thus, lowering the claim amount they will shell out. Inform your car insurance agent of any safety features, such as air bags, that your car is built with to qualify for further discounts.

It always pays to acquire many car insurance quotes and to compare them against each other to find the cheapest insurance policy with the best coverage offered. Don’t just settle for the first insurance company that gave you a quote. Take your time to know your options from various car insurance companies.

It is also recommended to combine your other insurance needs, such as life insurance and homeowners insurance, with your car insurance under the same insurance company. You can save on expenses when you buy packaged deals.

Reader’s Question:

I am obsessive compulsive when it comes to safety. Sometimes, I don’t understand people who take safety for granted. I have always been curious: How does a person become a high risk auto insurance client?

Gregg

Jefferson City, MO

Safety does seem rather important to you. To put it in plainer terms, auto insurance companies profile applicants and existing clients based on age, occupation, sex, geography, marital status, type of car, age of car, and driving history.

A person may be considered a high risk auto insurance client if he or she is aged 16 to 19 years old. It is not uncommon for drivers of this age group to be involved in fatal accidents. Also, younger drivers are mostly the ones driving while inebriated. As per statistics and figures, DUI arrests are common among teen drivers.

Also, people with occupations that require them to be on the road are often deemed high risk because the time they spend driving increases the probability of them getting involved in an accident.

Statistically, male drivers are more at risk than female drivers. Location or the place where the car is garaged is a factor. Living in an area with a high crime rate will surely fetch higher premiums. Let’s say, a particular neighborhood gets about five cases of auto-theft every month. If this is the case, auto insurers may not even agree to underwrite you. Your car’s model, year and make would also determine how much risk an auto insurance company will take having you as a client.

Finally, people with bad driving records may be considered high risk. Your record says a lot about you. Have you been speeding? How many times have you filed a claim? The more violations you have committed, the higher a risk you become.

Reader’s Question:

Who are the persons that fall under the high risk auto insurance category? What are the common coverage for high risk drivers?

Richard

Denver, CO

High risk drivers often pay more than the average driver. It is because they are bringing risks for insurance company along with them the moment a carrier decides to insure them. One way or another, auto insurance companies will pay for whatever cause or risk he/she might inflict upon, and what scares them most is the veracity of circumstances that sooner or later he/she will make claims due to his/her loss. This is one of the reasons why insurers charge higher premiums for high risk drivers.

The people recommended for high risk auto insurance are the following:

• Those who have convictions or held citations for not following traffic rules.
• Those who are convicted of DUI (driving under the influence).
• Those who are driving without insurance or never been insured.
• Those who have lapses in their policy.
• Those who drive recklessly.
• Those who have been involved in an accident in the past.
• Those having a bad credit report.
• Those who are driving for the first time.

There are many factors that put us in high risk situation. By downplaying these factors, you can lower your insurance cost.

There are also special coverages made for high risk drivers. The availability to a certain extent would depend on what conviction you are held against. Like for instance, for bad creditors, there is a Bad Credit Car Insurance; for those convicted with DWI or DUI, there is a special coverage that would best suit their needs, one which includes signing of waivers and SR22 forms.

Reader’s Question:

Do high risk car insurance companies charge more than other car insurance providers? Can you give me some general information about them?

Allan

Charleston, WV

Insurance coverage for what are called high risk drivers is generally costlier than the standard coverage. Car insurance companies offer a variety of packages for a variety of drivers -young, female, senior, and high risk. The premium changes with each classification.

By the way, what do you mean by high risk car insurance companies? It is possible for any high risk driver to get car insurance coverage from most companies. Compared to more reliable drivers, though, with better driving records, they get refused more frequently.(Certainly not all the time, but it does happen.) So when this happens, there are insurance providers out there in West Virginia which cater specifically to say, DUI offenders, who can’t get car insurance coverage anywhere else.

A high risk driver, by the way, has a very broad coverage and it is not limited to DUI offenders. Some even consider teenagers as high risk. It can include those who have had multiple traffic violations. Having a poor driving history as a whole can make a driver seem high risk to a car insurance company. And yes, one of the saddest parts of this is that the premium they are charged with is much higher. One good tip would be to work on a no-claims bonus. Being a safe driver is good on the budget, Allan.

Reader’s Question:

I’m 30 years old and for the very first time in my life, I was caught over speeding last week and received my first ever ticket. Will this affect my car insurance renewal next month? Does this mean I will have to get a high risk car insurance?

Joe

Seattle, WA

Well, Joe, there’s always a first time. And what an unfortunate first time for you. Tsk, tsk, tsk.

Will you be needing a high risk car insurance? Will it affect your car insurance renewal next month?

Let’s get this straight, Joe. I want this to be concise and informative as much as possible.
People who are classified as high risk drivers are those who have DUI or DWI records. You know, those people who were caught driving while drunk or those who were under the influence of drugs and were caught behind the wheels. These kinds of drivers, more often than not, cause road mishaps that claim lives on the road. But even if a person doesn’t have a DUI or DWI record, if he has been at fault in a vehicular accident, he may also be considered a high risk driver. Lastly, a driver who has multiple speeding tickets is also classified as a high risk driver.

It’s your first and only ticket, right? Do you think you will be classified as a high risk driver? Well, I don’t think so. At least, not yet.

Meanwhile, next time, if you have an important appointment, leave early to avoid driving too fast.

Reader’s Question:

I’m about to renew my car insurance policy and was surprised by the increase in my premium. It was not my fault that I was involved in an accident last year, so why charge me for that? How do insurance providers classify drivers requiring high risk auto insurance?

Ashley

Baton Rouge, LA

My heart goes to you, Ashley. Typically, high risk auto insurance equates to high premium. That is how insurance companies cover for the claims by the riskier driver. So, you wonder why your insurer is charging you for high risk auto insurance – well, let’s first take a look at how companies classify drivers requiring high risk auto insurance.

Insurance companies use a number of factors to determine high risk drivers. First in the list are those individuals with a DUI or DWI on their record. Teenage or young drivers are in this list, too. They are considered as greater risks than adults. So are first time drivers, regardless of their age. Their inexperience put them in this category. Although it might seem unfair, your being involved in accidents, (even those which were entirely not your fault) suggests to your insurance company that you might be a reckless driver. Any accident will increase your insurance rate. And so will speeding tickets. So it’s important to maintain a good and clean driving record. A poor credit history could also put you in this category.

The thing is, Ashley, paying for high risk auto insurance is not necessarily a permanent situation. You could still qualify for lower rates if you improve on your driving record. Drive your car carefully and safely. This may take some time, but the most important thing is to re-establish your driving record.

Reader’s Question:

What is a high risk auto insurance? Why are some insurance policies expensive while some are not?

Bernie

Louisville, KY

Typically, an insurance policy is classified into two: standard and nonstandard. The standard insurance is given to those who have low or average risk levels. If your risk level is low, it means that you have less chances of getting into incidents that could lead to expensive claims. If you have a smaller chance of making a claim, the insurance company would believe that they will make fewer pay-outs; therefore you are given lower rates. That’s why this type of insurance is called standard, because it caters to those regular customers or policy owners who qualify for standard premium rates.

On the other hand, nonstandard insurance, also known as high risk auto insurance, is given to those whose underwriting experiences cause insurance companies to think that they will have bigger chances of making frequent and expensive claims. People belonging to this group are often regarded as high risk drivers; hence, they are given high premium rates.

If you are getting an insurance policy, make sure that you aim for a low risk level. There are several ways of becoming a low risk driver. You could avoid getting a high-end car and get one that is safer to drive and less expensive instead, or you could maintain a really clean driving record. Either way is good as long as you can convince the insurance company that you are a safe driver and that you have less chances of getting into an accident.

Reader’s Question:

Is it impossible to find cheap high risk car insurance?

Fred

Columbus, OH

Cheap high risk car insurance is as glaring as contradictions can get. The phrase probably works better as advertising copy. Setting it in big bold blinking type may possibly catch the eye of someone desperately looking for high risk car insurance. But car insurance – and any other insurance for that matter – is a probability game against risk. As the risk increases, so does the rate. If you want to talk about the lowest possible rate a high risk driver can obtain for car insurance, then a better term would be relatively cheap high risk car insurance.

Granted such clarifications, it isn’t impossible to find cheap high risk car insurance. Insurance companies do not compute rates in exactly the same way. Some actually focus on particular classes of drivers. Some are better at insuring students and young drivers while others are better at setting rates for drivers above the age of 60. Both types of drivers actually fall in the high risk category. Young drivers belong there because of inexperience and mature drivers because of their deteriorating senses and reflexes. Compared to the rates you might get from providers who don’t specialize, what you’ll be offered by such companies that focus on high risk drivers can be called cheap high risk car insurance.