Auto Insurance for High Risk Drivers
Drivers who are worried they won’t be given any auto insurance due to their faulty driving history must know that eventually they will find a company who will agree to insure them and their vehicle. These drivers, known in the auto insurance world as high risk drivers, end up paying expensive premiums for their policies compared to the other drivers on the road. Insurers know they will wind up paying for more claims with high risk drivers, and in order to make a profit, they charge high risk drivers more. Members of the high risk category may experience frustration as they try to move on and establish a safer driving habit and cleaner record. This frustration can be avoided when drivers have a better understanding of what they need to do to improve their situation and get lower rates.
The following questions can be applicable to any driver, especially those who are looking for assistance in lowering their high risk drivers insurance.
Who Is Considered High Risk?
A high risk driver is one who is new to driving, usually a teenager or young adult, or a driver who has demonstrated a lack in safe driving by receiving a substantial number of traffic violations in a short period of time. Senior citizens are not as much of a threat because statistically they do not cause as many fatal accidents as a teenaged driver does. The risk of senior citizens increases around the age of 75 and dramatically more around age 80, but because these age groups do not drive as often as young, new drivers do, they do not pose as much of a threat.
Drivers who are convicted of driving under the influence or drunk driving are instantly categorized as a high risk driver with no previous warning. Many people who drive drunk once will probably do it again, and insurers aim to prevent this act by giving such a drastic punishment, in addition to what the law and courts will issue.
A combination of a fast car and a person with some traffic incidents (tickets and/or accidents) could get them the high risk label as well. As an FYI, automobile insurance companies assign all drivers with a level of risk, based on their driving record. The lower the risk, the more likely that driver will be offered insurance and at a low price, too. So, a driver with a past history of having involvement in an accident coupled with driving a fast car that has a potential to be involved in another accident will be given a higher risk level than someone who has a clean driving record driving a mini-van.
Another group of people who may find themselves in the high risk category are people who live in certain areas that are considered dangerous. These areas are ones where cars are often stolen, vandalized, or happen to be involved in more accidents than elsewhere. Although this has nothing to do with their ability to drive safely, it reflects the chance that the insurer will need to pay for repair or replacement of the vehicle.
What Is The Assigned Risk Program?
Drivers of almost every state are required to obtain and maintain an automobile insurance policy. Some drivers, due to their high risk status, cannot get this insurance because they are denied by too many carriers. Since the law is still in effect for them and driving is their necessary source of transportation, they must find a way to get insurance. The assigned risk program is when the state government assigns the driver to a company that must then provide that driver with auto insurance. Sometimes the insurance premium amount is decided by the state government, and sometimes it is decided by the insurance company.
The way to get insurance for high risk drivers is by applying for coverage and getting denied three times. Then the agent will have the driver fill out a different form, applying for high risk insurance, which will be sent to the state. If you are having troubles finding a company that will insure you, you can ask the state for a list of high risk providers, or ask them to contact your prior insurer (assuming you want to stay with them) and see if they can mandate that insurer to continue your coverage. This continuation would come with a high price though.
Auto insurance carriers reserve the right to refuse to provide their services to anyone whom they feel would be too expensive to insure. Remember, insurers make their money when customers pay their premiums but don’t file any claims. Then the insurer clearly makes money off of them.
What Are Some Ways To Lower My Risk Level?
Once placed in a high risk level category, it is hard to get out of it. It will take time and effort, but it will be worth it. As an added means of motivation to lower the risk level, the premium rates will decrease as well. Drivers can make an effort to drive safely and clean up their driving record. While there isn’t much one can do about erasing past tickets and accidents, they can do their best to avoid getting any in the future. This may include eliminating driving as much as possible and taking the bus, cab, or carpooling with another person. Any tickets recently received should be taken care of by taking the appropriate driver’s education class to prevent it from being placed on a permanent record. Pay any fines or old tickets so they’re not on the record either.
Basically the best way to lower a risk level is to do the opposite of what put you in the category. New drivers should work on their driving skills very cautiously so as to not be involved in tickets or accidents and wait for time to pass.
Don’t forget that even as a high risk driver, you should still compare rates to find out which company will give you the lowest price. While it may not seem obvious, you too can still save some money by comparison shopping and taking advantage of discount opportunities.
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