Preferred Risk Auto Insurance

A vehicle insurer’s success depends on how good they are in assessing applicants. Generally outstanding motorists with no recent claim or traffic ticket and several years of driving experience are favored simply because they are much less likely to cause any trouble in the future. They get offered preferential rates, which are cheaper than standard prices and yet more likely to be profitable for the company.

What Is Preferred Risk Car Insurance?

Underwriters work hard to differentiate the market so that they know their target segment and their characteristics. Generally, applicants are grouped according to their risk profile. As the name suggest this is the least perilous group in any line and therefore accommodated by almost every source. In simple terms, they are the best drivers and the policies targeting them has to be competitively priced and attractive in terms of coverage that several extras may be thrown in as well as having the most accommodating terms.

How to Find a Preferred Risk Automobile Insurance Company?

Almost every carrier would love to have this lowest risk group of policyholders who are not only trouble free on the roads but live in a safe zip code, have good credit score, a respectable job and a safe car. They are probably the least problematic since they rarely make claims and pay their premium without any problem. You can get the most competitive quotes if you fit in this group.

Generally, a best deal policy is more likely to be offered by the largest vehicle insurance companies as they are better equipped to combine good coverage with low rates in order to win the least troublesome customers. Therefore, you should start the search with them if you consider yourself to be a good prospect.

A few of them may be actively promoting themselves as the most popular provider in this market. However, this is hardly anything to boast about or something you should care much about since you are already spoiled for choices. Any of these best auto insurers would probably do and therefore you can pick the cheapest one after getting several quotes.

How to Define a Preferred Risk Driver?

Underwriters almost always classify the applicants they are pricing. For example, high flooding, earthquake or hurricane zones are categorized as dangerous due to clearly distractive tendencies of these natural occurrences. The same applies to vehicle insurance where drivers and automobiles are classified.

Typically, they divide drivers into four categories. From the most to least favored, these are preferred, standard, substandard and assigned risk. The first category comes with most advantageous age, zip code, credit score, experience and records, and offered matching prices. Standard motorists are considered “average” and pay typical premiums. Substandard or nonstandard applicants are considered the most problematic to insure, and they pay the highest. Assigned motorists are usually denied coverage or cannot find affordable policies on the market and have to seek it through state assigned pool.

Preferred drivers have excellent records, no claims, and good credit scores. They commute relatively short distances, and not own a sports car. They are simply the best with plenty experience and long clean history. These days you can add good credit score, jobs and education to qualifications as more and more carriers take these qualities into account along with records.

Here is what you need in order to become a highly desired policyholder and get the best car insurance rates.

  1. Probably one of the first conditions for most carriers is being at least 25 years old. Does premium go down at 25? The answer is usually yes and this makes 25 a significant age.
  2. Another question that helps in explaining why you get discounts if you are a better than average is does the rates go up if you get a ticket? So, you should avoid getting tickets for things like speeding, recklessness, illegal turn or obstruction.
  3. You should avoid claims wherever you can and being careful helps a lot in that aspect. If you have just had a fender bender you probably need to know how much does it go up after an accident?
  4. Things like credit score, home ownership and reputable job are influential factors these days and affect the classification. Some of them would even ignore your long no claim history and penalize you for having bad credit score and place you in non-standard group.
  5. You should avoid buying a car that is considered hazardous by most due to its speed, value or body shape if you want to keep low profile. The car can increase your rating high enough to knock you down to a lower price bracket.

Basically, you get all the large discounts when you are deemed to be an all around safe automobile insurance candidate and that is why the premium would be cheap. When you make it there you must make sure that you milk it by getting the most value for money.

How Much Can You Save on Premium with a Select Policy?

You qualify for discounts that can be as much as 50% depending on where you live and the provider you are with. A favored applicant is basically someone with experience, no claim and traffic ticket. It is normal that most of them will offer their best rates to such people who have proved to be reliable and profitable.

However, it isn’t just about driving these days. You need to have a good credit, job and live in a safe zip code too. When you have these qualities you can qualify for discounts on home and other lines as well. For example, you can save more by bundling home and auto.

In any case, you need to shop for the cheapest quotes to make the most of your qualifications. When you have problems with credit report or record you would have limited sources. On the other hand, every one of them would offer most competitive quotations when you are clean as a whistle. So, there is nothing holding you back and you can compare the whole of the market without worrying about how they will respond. In some states, you can save as much as 80% by shopping around attentively.

Share on Pinterest
There are no images.