Having trouble finding a cheap auto insurance because you’ve been classified as a high risk driver? This article will serve as a guide to getting reasonable rates for yourself.
Who is a high risk driver?
Auto insurance companies may consider the following to be a high-risk driver:
â€¢ Young and New Drivers
If you have recently acquired a license and/or are under the age of 25, auto insurance companies will classify you as a high risk driver. If you are a young driver, the ideal thing to do if the car is registered on your parents name is to apply for insurance in your family name or your parent’s name. Generally, young drivers have to wait till the age of 25 to be considered experienced drivers and be eligible for cheap auto insurance quotes. Young drivers should be aware that reckless driving on their part could lead to cancellation of their coverage. In some states, a male driver below the age of 25 may have to pay a higher premium than a woman. New drivers, i.e. someone who has very recently acquired a driving license may also be categorized as a high risk. Most car insurance companies consider you to be a new driver only for the first 3-5 years.
Some life insurance companies offer discounts to young drivers if they can keep their grades up! Look for such companies.
â€¢ Speeding Tickets
A single speeding ticket may not affect your auto insurance policy, but it’s better you not have any speeding tickets on your record. Excessive speeding, reckless driving and other moving violations will only lead to higher insurance rates. Having a recent record of speeding may make you ineligible to apply for discounts.
â€¢ DUI(Driving Under Influence) or DWI(Driving While Intoxicated) Conviction
If you have been convicted for either of the above you are likely to be categorized by insurance companies as a high risk driver. In this case, there is a high likelihood that you would need to file an SR-22 form to confirm that you carry enough liability insurance in case you get involved in an accident in the future. An SR-22 or Certificate of Financial Responsibility is mandated by your states DMV and is usually issued in court if you have been convicted for DUI or DWI. Some auto insurance companies only need to be notified if you have been convicted but some companies would cancel your policy. Your insurance premium would naturally increase, though you might want to shop around and compare auto insurance quotes if you fall in this category.
â€¢ Bad Credit
Auto insurance companies very often use your credit rating to determine whether you are high risk or not. Studies have shown that applicants with poor credit scores are more likely to file for claims and this may make them a ‘high risk’ for some insurance providers.
Cheap Car Insurance for High Risk Drivers
Here’s what you can do to get the best and cheapest insurance rates for yourself:
â€¢ Get as many auto insurance company quotes for a comparative study. It helps to compare the rates of different companies – you’ll often find variations, discounts that could make a huge difference in savings.
â€¢ Find the insurance policy that suits your needs the best and stick to it! These companies will offer you discounts for maintaining a good driving record. As long as you maintain a good driving record, it’s possible that with every new renewal, your premium rate might reduce!
â€¢ Try not to get any speeding tickets or moving violations – this will only raise your premiums. DUI or DWI may lead to cancellation of your coverage and after that, you’ll find it difficult to get any kind of coverage from any auto insurance company.
â€¢ Make sure your insurance renewal never lapses. Check your policy regularly and set reminders for renewal dates.
Remember, safety features installed in your car and passing a defense driver’s test, can earn you discounts with some companies. Some auto insurance companies offer first-time forgiveness and will not raise your premiums after a first offence or traffic violation.
Of course, keeping your record clean is a good way to earn the best auto insurance rates, but if you’re looking for the best rates for yourself, you should compare quotes from different companies.