Being labeled as a “high-risk” driver can pose numerous problems for a person who is trying to obtain automobile insurance. At best, the person’s rates will be higher than average, and they sometimes will have difficulty obtaining any car insurance at all. Before we examine how a high-risk can find affordable car insurance, we should first define what a high-risk driver is – or more accurately, what the auto insurance companies define them as.
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High-Risk Drivers Can Have Numerous Traffic Violations
A term that is often thrown around for high-risk drivers is to label them as “bad drivers.” These are drivers who may have serious traffic violations on their driving records. A DUI/DWI conviction is a good example of this. So are reckless driving tickets, and multiple excessive speed tickets. All of these violations are enough to qualify one as a high-risk driver. Though simply calling a high-risk a “bad driver” is a bit misleading. A high-risk driver in this case has multiple infractions on their driving record. It is the record that matters to the auto insurance companies.
Age Can Also Be Factor
A poor driving record is not the only way to earn the label of a high-risk driver. Auto insurance companies scrutinize the driver’s age and amount of driving experience. A teenage driver who is not under their parent’s policy will be considered high-risk, even though they may have a spotless driving record.
The same is true for older drivers. A driver over seventy-years old can face the same hurdles as the teenage driver. Both of these age groups have been statistically proven to have a higher chance of getting into an accident. This may seem like unfair discrimination, but auto insurance companies have facts and figures on which to base their rates. And those facts do not lie.
The Type Of Car You Drive And Where You Live
If you drive an expensive car there is a chance you could be earn the title of a “high-risk” driver. It may seem strange that this can be determined by the vehicle you drive, not your actual driving record, but insurance companies must evaluate the amount of risk they are underwriting. A pricey sports car may be a risky venture. When auto insurance companies face higher risk, they have higher rates. It’s that simple. If the car has other issues in addition to its price tag (like if it is a frequent target of car thieves) then it can also earn the designation as high-risk.
Your neighborhood can also make you high-risk for insurance companies. If you live in area that sees a lot of accidents, or if there has been a high number of cars stolen in your zip code, you could be labeled as a high-risk. Again, the auto insurance companies must weigh the risk of insuring you and the chance you will submit a claim. If those who live around you have filed a lot of claims, this can make you high-risk. Again, this is not exactly fair, but it is the reality the auto insurance companies must deal with.
Let’s say you are considered a high-risk driver. Does this mean you have to accept higher rates and simply deal with the inconvenience in trying to find an insurer? We at Cheap Quotes Car Insurance want you to know you can fight back. There are effective strategies you can implement to reduce your car insurance rates while still finding the coverage you need. All the issues that addressed above – poor driving record, your age, car, and where you live can be dealt with and you can still secure affordable car insurance.
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Clear Your Record
First, you want to determine if there are inaccuracies on your driving record. This is similar to checking your credit report. Driving infractions can negatively impact your record and affect you overall insurability. If there are violations on your record that shouldn’t be there, take care of them immediately. You can get copy of your driving record by contacting your state’s DMV. If there are problems with your record, report it to the DMV and go about the process of having them removed.
The next step is more of a long-term strategy. But the benefit will be great for your insurance rates and your wallet. Basically, you need to maintain a clean driving record and the earlier violations will disappear over time. Now this may be easier said then done, but if you want to save money on car insurance, this is an absolute must. If you are high-risk driver because of driving violations this issue must be addressed. Obey all traffic laws, drive the speed limit, don’t drink and drive.These things aren’t complicated, and if you follow through, you can say goodbye to being considered high-risk. Not to mention all the savings you will enjoy on your premium month after month, year after year.
Discounts
You are deemed high-risk because of your age. You are either too young or too old. Well, that doesn’t mean it is impossible to get lower car insurance rates. There are discounts offered, some tailored to the young and to the old, that can dramatically reduce your car insurance premiums.
Good Student Discount
Young people under the age of twenty-five are eligible for the good student discount. The student must maintain at least a B average in either high school or college in order to earn the discount, which can be up to 20% depending on the insurer.
College Students Away From Home
College students not living with their parents can see a discount. The reason being that they are less likely to drive the family auto. This discount can be up to 20%.
Retired Driver Discount
This is geared towards drivers over the age of 55. The theory behind this discount is that if a driver doesn’t have to drive to work, they will spend less time on the road.
Senior Adult Discount
For drivers 65 and above, some insurance companies will give discounts on personal injury protection and other coverages.
Safe Driver Discounts
This applies to both young and old (and actually everyone else). If you are accident free for 3-5 years, receive no traffic tickets, discounts of up to 25% off your premium are offered.
Install Safety Equipment In Your Vehicle
If you are high-risk because of the type of car you drive or where you live, one way to combat this is to install safety features in your auto. Insurance companies will discount rates for equipment that reduces the severity of accidents and the chance your vehicle could be stolen.
Features like air bags, anti-lock brakes, and over-the-shoulder seatbelts are recognized by auto insurance companies for being able to reduce bodily injury claims. If even you drive a costly high-risk auto, features such as these can knock down your insurance premiums.
The same can be said for anti-theft devices. Car alarms, steering-wheel locking devices, immobilizing equipment have been proven to ward off thieves. Even if you happen to live in theft prone area, having these features installed in your vehicle will reduce your rates and make your car insurance more affordable.
The above are all effective strategies for the high-risk driver. Some can be done right away, others require more time. But sometimes getting affordable car insurance rates is more of a marathon than a race. In the end though, the results are the same, big savings for you and your family. One question remains – what if, because of your high-risk status, you can’t find car insurance? What are you supposed to do? Well, here are two possible options:
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Join A State Assigned Risk Pool
State assigned risk pools are set up by state governments and are meant for drivers who auto insurance companies refuse to underwrite. The pool functions by having insurers voluntarily contribute to it, and then all the auto insurance companies reap the profit from the pool or absorb the losses. Premiums in a state assigned risk pool will be higher than average, but at least you will be able to obtain car insurance.
Get A Policy From An Insurer Who Specializes In High-Risk Drivers
There are car insurance companies out there who seek high-risk drivers. They survive by charging high premiums. High risk, high reward is how these companies operate. You will pay more to be insured by an auto insurance company like this, but the strategy could be to maintain a clean driving record, then switch to a more affordable insurer. Look at it as a short term plan – get car insurance through a specialty insurance company, then after six months or so, find a more mainstream, less expensive insurer.
No matter the reason you have been deemed high-risk, there are effective ways in which you can find Cheap Quotes Car Insurance and find the best rate available!