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.