High-Risk Auto Insurance
High-risk auto insurance is insurance coverage for drivers stated as ‘High-Risk Drivers.’ As the name suggests, these are the drivers with lack of experience behind the wheel, past driving violations, poor credit score and record of accidents in the past. Insurance companies often find such drivers risky to insure yet they sell the policy but with high premiums.
Considerations to verify whether you are a high-risk driver:
- DUI Offense: Driving Under the Influence (DUI) or Driving While Intoxicated (DWI) offense is a significant consideration and if in case you have a record of being convicted of driving under any influence, your insurance premiums are sure to go up.
- Young and Inexperienced Drivers: If you are young and new to driving then indeed you have high energy and power to experiment behind the wheels on the road. In such a scenario, you are more prone to accidents and unexpected incidents considered as high risk by a majority of the insurance companies.
- Poor Credit History: Poor credit history or low credit score will also take you to pay higher premiums. However, in most of the states having car insurance is mandatory concerning legal aspects. If in case you found driving on the road without insurance, you will lose your driving license.
- Driving Violations: Any driving violations or going against road rules defined by the law, will take you to pay high premiums for your car insurance. Even if you have a record of multiple speeding tickets, you are liable to pay higher premiums.
Factors to consider when looking buying high-risk auto insurance:
- The first and foremost step is to compare and contrast all the insurance providers available in your area. Do thorough research and then shortlist a few depending on your analysis, judgment and of course reviews or testimonials from other customers. Ask for quotes from all the shortlisted providers and then compare to choose the best provider and the best plan. Getting into the complaint ratio and financial strength of the company can also prove to be beneficial for making the final judgment.
- Despite being a high-risk driver and paying a higher premium, you can switch over to a lower premium if in case you prove yourself as a responsible and safe driver over a period. The process that goes from high to low takes a reasonable amount of time, but it does happen once you prove it and further maintain the same.
- You can even take initiatives to lower your rate by gaining new wisdom on the driving rules, taking special classes for improving your hands on driving and improving your credit score.
Measures to take for reducing the risk and lower your cost of buying the insurance:
- Do keep checking for the discounts that most of the insurance companies continue offering time to time.
- Drop all the unwanted cost and coverage that you feel is not significant in case of damage.
- Get to choose a higher deductible that will further result in lower premiums and achievement of essential claims.
- If you are not a regular driver and you use your car once a week or once in 15 days, you can go for a policy that offers insurance on pay per mile. However, only a couple of providers provide such coverage.
- Make sure that your drive a car that is cheaper to insure and a car equipped with the technologies like airbags, safety devices and anti-theft devices that earn extra discounts.
Difference between high-risk insurance and standard insurance:
- The most significant difference is cost. In case of a high-risk policy, the insurance company is taking a more substantial financial risk. Hence, puts across this fiscal responsibility through a higher premium. In the case of standard insurance, the financial risk is less, and so the premium payment is comparatively lower.
- The insurer checks your driving record and verifies the same more thoroughly, precisely and frequently.
- Repairing the damage done at a depreciated rate in case of high-risk insurance whereas, with the traditional policy, a thorough check is done intending to cover the full cost of all the repairs.
- No perks are offered in case of high-risk insurance whereas, with the standard policy, the insurer gets various perks and benefits.