There are a variety of reasons that people are placed with high risk insurance carriers today. One reason can be as simple as the fact that they have not had continuous coverage for the previous six months. A lapse of even a day can nearly double your rates. If you find you are unable to pay your premium, it is a good idea to contact your agent and try to work out something for the payment to avoid this happening.
Other reasons for this classification will be problems with your driving history. If you have had many tickets and/or accidents, you will be placed in this category and pay more for your coverage as a result. Drunk or impaired driving charges are one of the highest priced coverages that there are today. Additionally, this type of classification will result in higher premiums for a longer period of time as well.
When you are placed in this type of class for your coverage, you will be paying far more than many others who are not in this category. There are several reasons for this. When you are considered to fall into this category for whatever reason, the rates are higher due to more of a risk that the company will be required to pay a claim.
There is a greater chance that you will need to use the coverage and therefore you will be required to pay more for it. While in some cases the reason may be out of your control, it will not change the fact that you will be required to pay more. New drivers are considered to have a greater chance of requiring an insurance claim as well and are therefore placed in this category.
For example, perhaps you have been without coverage because you have not had a vehicle to drive. Or perhaps you could not afford to pay your policy and therefore have not been driving the vehicle you do have. The reason behind the classification will not change the rates however.
High risk insurance today is a very big business. It means that the people who are underwriting your policy are being paid nearly double to carry coverage for you during this time period. There are ways to get out of this class but it will take some time. You need to carry the policy for six months and you need to be accident and ticket free during that time.