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.