Most people may fall into the ‘high risk driver’ status at some point in their lives. As this designation refers to a variety of life and personal situations, understanding how you might be labelled a perilous applicant will be important. Firstly, it will help in avoiding it if you can. Secondly, you will learn what to do and where to go to reduce premium.
What Is High Risk Car Insurance?
This designation is not one that refers to a habitual offender by state department of motor vehicles, but it is a specific designation by insurers after you have been assessed for a quote. A dangerous label can be assigned for various reasons (see below). And these reasons can change from one company to another.
Depending on the amount of exposure each underwriter can accept in their portfolio, this label may be assigned to you by one, but not others. This is why getting multiple competing quotes is so important. Policies for more perilous motorists tend to be more expensive than regular ones. Here is a list of high risk auto insurance companies that may be able to offer you lower rates than others. Quite a few of them offer non standard coverage. But most of them would be expensive as this is their way of saying they are not so keen on writing policies for people who are likely to make a claim shortly. Remember that they have to make profits to justify their investments in the industry.
Who Is a High Risk Driver?
Each automobile insurer has own assessment of applicants that looks at various factors and background information. Basically, characteristics and definition can change according to each of them. Nonetheless, we can list several key characteristics below;
- DUI/DWI: You cannot expect sympathy after driving while drunk and endangering lives, including yours. In the same way, you cannot expect to find an economical policy. Most providers will make you pay for it.
- SR-22: This is a classification of a driver who needs to fill SR-22 form in order to get his license back. This form helps DMV to monitor them. A motorist gets this classification after being caught driving uninsured or cause an accident while the coverage is insufficient or non-existent. Or it may be that they are caught under the influence.
- Age: Usually teenage motorists are considered dangerous. However, some carriers may include anyone under the age of 25 or over the age of 70 in this category.
- Bad Claims History: Having already claimed at least once is seen as signs of things to come. Usually most claims will increase premiums. However, large accident related claims, where the policyholder was at fault, will make you unsafe.
- Traffic Moving Violations: Companies can see those and won’t be happy to see several speeding tickets or other violations there.
- First-time Drivers: Lack of experience will be seen as hazardous regardless of age.
- Lapse in Coverage: Motorists who let their policy lapse are considered with caution and they can be priced just like a first time buyer.
- Poor Credit History: Not many people are aware of this but most insurers check credit history. Poor credit history is seen as a good indicator of claims.
- Non Standard Details: Something in your details may be out of ordinary that makes it harder for you to get quotes from large numbers of sources. It may be because you have a foreign driver license or an unusually modified vehicle.
Can You Still Find Cheap High Risk Driver Insurance?
It is certainly possible. However, you must conduct a two-pronged approach to ensure you get the best possible price. The first strategy that you need to employ is to look at how you can avoid or get rid of the dangerous mark. Many underwriters look at a whole variety of factors including school grades, profession, credit score, age and more. In order to get rid of this label, you can even take DMV courses for defensive driving in some cases to prove that you are working on improving. Turning 26, getting married, buying a top safety-rated vehicle, raising credit score and getting good grades can all help in getting rid of the designation or by getting discounts that lower the overall premium even with a hazardous stamp on you.
Secondly, in order to get the most competitive nonstandard car insurance, you need to find companies that are keener. There are literally hundreds of them, but most of them are just not interested. Few of them specialize in different areas, including difficult cases. Some national providers have such a huge number of policy types that they can accept complicated applicant, which opens the door to lower premiums. The key is ensuring that you keep getting quotes until you find one that does not label you as bad as others, or by finding an affordable coverage. If the situation is quite bad you may have to look at non-standard market.
What If You Can’t Find Auto Coverage
Unfortunately, there are times, when all of them want to avoid you or simply refuse to help. Most states provide an alternative plan for people who are denied left right and center because all of them require minimum liability coverage. They are usually state-run to help the uninsurable comply with the laws. These plans are still available through regular agents, online and other sources. They should be used as a last resort as they are typically even more expensive than what you can get in the non standard market.
Get started finding affordable high risk vehicle insurance right here with our great quoting tool. Remember the key to finding decent rates for motorists with blemished records is to be persistent and keep looking until you find the one that will not be scared of taking you on. Also, keep in mind that this may be a temporary situation after a recent accident or traffic conviction. If you keep your nose clean you may be able to get better rates from usual sources as early as next renewal and switch.