Auto Insurance Tips for High Risk Drivers

Auto Insurance Tips for High Risk Drivers – It varies from state to state, but most State’s Department of Motor Vehicles mandate that you have, at least, liability coverage on your vehicle in order to hold a license and drive a vehicle. If you have a less than satisfactory driving record, you could be considered a ‘high risk’ driver and will need to carry auto insurance on your vehicle.

Because of the high risk behavior you have demonstrated, auto insurance companies can charge you more on your insurance policy. Always take the time you would on every other large purchase and shop around for the best rates possible. It is possible to save money even if you’ve been classified a high risk driver.

Keep in mind, when shopping around for a high risk policy; it is not altogether necessary to purchase the extra things that are not required by a minimum coverage liability policy. It is possible to save money by sticking with your state’s minimum coverage policy. When your driving record improves, then start shopping around for better policies.

Overall cost of a bad driving record will vary on your state, your insurance company and the extent of the severity of your driving record.

Insurance companies remain profitable by not having to pay out on claims filed by insurance holders. When an insurance company takes on new clients and determines what price a client should pay for insurance, the insurance company will calculate that price based on the likelihood of their client filing a claim. If you are considered a high risk driver, an insurance company will calculate that there is a high probability you will be involved in a situation where a claim will be filed. Therefore, they will charge a higher premium for you since you are a higher risk client.

What is it that makes a high risk driver or, rather, what violations would make it to where you would be classified as a high risk driver?

The most serious offense is Driving Under the Influence or Driving While Intoxicated.

Other offenses are reckless driving, fleeing from scene of an accident or driving the wrong way down a divided highway.

If committing one of these offenses, your insurance premiums will rise significantly.

Common Offenses:  Speeding tickets, running a red light or stop sign or driving without insurance, failing to keep your children safe by using restraints (like a car seat) will also cause your insurance to go up. It is more so an accumulation of these tickets over a short period of time that will cause your insurance to go up.

TIP: If you fall into this category of high risk, definitely shop around for several quotes before making a decision. It is possible to save money. Cheap high risk auto insurances are not something that easy to find, but there are companies that provide reasonable quotes. Just do some research and always make sure you’re maintaining the state’s minimum requirements.

State Departments of Motor Vehicles have mandated a certain number of carriers to cover drivers that find it hard to get insurance under an assigned risk policy. These policies are usually no different in coverage and they must at least carry the minimum liability limits set by that state, but they are available to any driver regardless of driving record.

Assigned risk car insurance policies are a last option to individuals with driving record’s that are too bad for a typical high risk plan.These policies will cost significantly more than a standard car insurance policy. In some cases, you could pay twice as much for an assigned risk car insurance policy.

If you ever find yourself on a high risk policy, know that it’ll be okay. Typically, after your tickets have gone away (after 2-3 years for regular tickets, or, in the case of a DUI, up to 5-7 years) you can start obtaining quotes from carriers that will help you back on the path to lower insurance premiums and out of the assigned risk/high risk category.

TIP: Improving your driving record is the sole factor that helps lower car insurance. Time, patience and good driving behavior can help you get off high risk auto insurance and back to lower premiums.

Keep in mind if you’re a high risk insurance driver:

  1. You can still get insurance and remain insured!
    • Just because you’re high risk, doesn’t mean insurance will be hard to find.
  2. You should still look around, compare and contrast, for the best deals.
    • Always shop around for the best deal even if you’re high risk.
  3. High Risk Insurance is affordable and can still offer flexible policies
    • Shopping around will show you that it can be affordable and flexible.
  4. SR-22 is not a type of insurance.
    • If you need an SR-22, it’s a certificate that shows you have insurance, not insurance itself.
  5. You don’t have to be “high risk” forever!
    • Remember, time, patience and good driving habits will bring you out of the high risk category.