When you apply for auto insurance, the company profiles you and then assigns you a certain risk and a premium. Here is an article by Charlie Brandes about this topic.
Do You Really Need High Risk Auto Insurance?
Insurance companies rate drivers on a number of factors before determining that they are high risk. The higher the probability that you will be in an accident, the higher your auto insurance rates will be. Although there are a variety of reasons you can be labeled "high-risk" by insurance companies, there are a few ways to reduce your car insurance rates.
Why Am I a High-Risk Driver?
Usually it's one or more reasons that would make a driver be labeled as high risk by their insurance company. For example, having multiple tickets, being a new driver, or having an unusually high number of accidents. Motor vehicle violations such as Driving Under the Influence (DUI) can also cause a driver to fall into the high-risk category and it can take as long as 5 years to clear from your driving record. Driving a high-performance vehicle designed for racing can lead to higher rates. Age and credit rating may also be a factor. Younger drivers with no insurance history and older drivers may be considered high-risk by their insurance companies.
Getting Back to Low Risk Status
Some high-risk drivers may need time to pass for past driving infractions to no longer impact their rates but can still find insurance companies that specialize in these types of policies. Shop around and get several quotes, ask for possible discounts such as bundling your home and auto package. You can get safe-vehicle discounts and reduced rates for insuring more than one vehicle. Ask your agent for the best deal and remember that he wants your business and will work with you to get and keep it. Continued coverage with the same insurance company can also lower your rates. Request a policy upgrade when your motor vehicle violations have cleared your driving record (usually 3 years for non-DUI infractions).
Assigned Risk Pools are designed to provide auto insurance to high-risk drivers. Depending on the state you live, the government assigns you an insurance agency and you cannot shop around but you get coverage. Some states require you to file a form SR22 that proves coverage and these ARP's (Assigned Risk Pools) are some drivers only option to be able to legally drive back and forth to work.
Taking defensive driving courses can lower your rates with some companies and remove points from your driving record. In some states where you live and where you park your car at night can affect your rate. If you live in an area with high accident rates and high crime you can be considered high-risk by your carrier.
Having a deductible as part of your auto insurance package can bring down rates, ask your agent for the best plan for your situation. If you are a younger driver and still living at home you may be able to get into a group plan on a family policy but this in not available in all states. Of course, driving safely and responsibly is the best way to eventually lose the label of high-risk driver and save lots of money over the years.
Charlie Brandes and Cloverleaf Insurance can quote more than 50 different insurance companies. Call him at 800-530-5822 or go online to get a free Missouri SR22 Insurance quote.
Why Am I a High-Risk Driver?
Usually it's one or more reasons that would make a driver be labeled as high risk by their insurance company. For example, having multiple tickets, being a new driver, or having an unusually high number of accidents. Motor vehicle violations such as Driving Under the Influence (DUI) can also cause a driver to fall into the high-risk category and it can take as long as 5 years to clear from your driving record. Driving a high-performance vehicle designed for racing can lead to higher rates. Age and credit rating may also be a factor. Younger drivers with no insurance history and older drivers may be considered high-risk by their insurance companies.
Getting Back to Low Risk Status
Some high-risk drivers may need time to pass for past driving infractions to no longer impact their rates but can still find insurance companies that specialize in these types of policies. Shop around and get several quotes, ask for possible discounts such as bundling your home and auto package. You can get safe-vehicle discounts and reduced rates for insuring more than one vehicle. Ask your agent for the best deal and remember that he wants your business and will work with you to get and keep it. Continued coverage with the same insurance company can also lower your rates. Request a policy upgrade when your motor vehicle violations have cleared your driving record (usually 3 years for non-DUI infractions).
Assigned Risk Pools are designed to provide auto insurance to high-risk drivers. Depending on the state you live, the government assigns you an insurance agency and you cannot shop around but you get coverage. Some states require you to file a form SR22 that proves coverage and these ARP's (Assigned Risk Pools) are some drivers only option to be able to legally drive back and forth to work.
Taking defensive driving courses can lower your rates with some companies and remove points from your driving record. In some states where you live and where you park your car at night can affect your rate. If you live in an area with high accident rates and high crime you can be considered high-risk by your carrier.
Having a deductible as part of your auto insurance package can bring down rates, ask your agent for the best plan for your situation. If you are a younger driver and still living at home you may be able to get into a group plan on a family policy but this in not available in all states. Of course, driving safely and responsibly is the best way to eventually lose the label of high-risk driver and save lots of money over the years.
Charlie Brandes and Cloverleaf Insurance can quote more than 50 different insurance companies. Call him at 800-530-5822 or go online to get a free Missouri SR22 Insurance quote.
Source: EzineArticles.com.
Thank you Charlie! That was very helpful.
Nadav
nadavs
