High-risk auto insurance is a type of policy that is specifically designed for drivers with the tendency to file a claim due to involvement in several car accidents. The higher you file a claim, the higher the premium you will be charged for your auto insurance.
To find the best auto insurance policy for a high-risk driver, it is advisable to get several quotes and compare price and coverage options. Furthermore, this will enable you to narrow down your choices to the one that best aligns with your preference and budget.
Who Is A High-Risk Driver
Typically, a high-risk driver is more likely to file a claim than a regular driver. Most auto insurance companies evaluate your driving record to check how risky it is to insure you and how your premiums will be set. Additionally, the insurance company you’re buying high-risk auto insurance from will charge you for coverage based on whether you have DUI convictions and several traffic violations on your driving record.
In most cases, high-risk drivers pay more for auto insurance those other drivers. This is because they are likely to get into car accidents and file claims, hence the reason they are viewed as greater liabilities.
How Do I Know If I’m A High-Risk Driver
What defines a high-risk driver varies across several insurance companies. Most auto insurance companies consider several factors when determining if you are a low-risk or high-risk driver. However, you’ll most likely be labeled as a high-risk driver if you have any of these on your driving record:
- Various speeding tickets.
- A large number of traffic violations.
- A DUI or DWI conviction.
- Reckless driving conviction.
- One at-fault accident.
Aside from having a poor driving record, your insurance company may also designate you as a high-risk driver based on your previous insurance history and finances, such as:
- Lapses in insurance coverage.
- Poor credit history.
- Regular filing of claims.
- Owning a high-value vehicle.
In addition to these, if you are a new driver who has not purchased auto insurance coverage before, some insurance providers may consider you a high-risk driver.
How Much Does Auto Insurance Cost For High-Risk Drivers
Generally, if you are considered to be a high-risk driver, your insurance company tends to charge you higher premiums. This is because you are exposed to a lot of risks and the chance of you filing claims regularly is high. Nevertheless, the price of auto insurance for high-risk drivers varies; it depends on the state, insurance company, and the driver.
Some insurance companies may consider certain risks higher than others. Hence, the reason the amount will be different. The easiest way to know the average cost of auto insurance for high-risk drivers is by getting quotes from different insurance companies.
Factors That Affect the Cost of Auto Insurance
Being a high-risk driver automatically means you will pay higher premiums than regular drivers who are considered low-risk. When determining the cost of your auto insurance, there are so many factors that your insurer will put into consideration, such as:
- Credit history.
- Age.
- Location.
- Driving record.
- Gender.
- Marital status.
- Type of vehicle you want to insure.
Furthermore, aside from having a high-risk driver profile, your insurance provider will determine the cost of your coverage by these factors.
How to Avoid Being A High-Risk Driver
Being labeled as a high-risk driver comes with a lot of disadvantages, one of which is that you get to pay higher premiums. However, to avoid being designated as a high-risk driver, we have helped to curate some tips you need to follow:
- Maintain a good credit score.
- Do not drive under the influence of alcohol or drugs.
- Don’t disobey traffic rules and regulations.
- Get rid of any form of distraction while driving.
- Pay your insurance payments as of when due.
- Take a defensive driving course.
If you follow these tips, you will escape being labeled as a high-risk driver by your auto insurance provider. Some insurers offer discounts for drivers who have a clean driving record.
How to Get High-Risk Auto Insurance
Although some companies are unwilling to insure high-risk drivers, it is still possible to find an insurance company that offers coverage for high-risk drivers. If you are in dire need of high-risk auto insurance, you may need to apply efforts in searching for the best insurance that offers a reasonable rate. The first thing you need to do is to search for high-risk auto insurance companies. Get and compare quotes from different insurers. With this, you may find an insurance company that offers an affordable premium.
You can also reach out to an independent auto insurance broker that works with so many insurance companies. Majorly, independent insurance brokers help in identifying the right coverage options that suit your specific needs as a high-risk driver. Once you have found an insurance company to work with, select the coverage amount you want and pay for the premiums.
FAQs
Who is considered the highest-risk driver?
The definition of a highest risk driver encompasses the majority, if not all of the characteristics of a high-risk driver. The highest-risk drivers are those who have so many accidents and DUIs on their driving record.
What is a low-risk driver?
A low-risk driver is typically the opposite of a high-risk driver. Low-risk drivers are those people who are less likely to get into road accidents and file claims regularly. One of the major characteristics of a low-risk driver is that they usually have clean driving records. Others include few traffic violations and less prone to car accident occurrence.