Do I Need A High Risk Auto Insurance & How To Find Best?
Auto insurance is one of the most common types of insurance in the world. Drivers prefer to ensure a recently bought car to avoid unexpected situations on the road which can result in large cash losses. Especially actual this insurance becomes when it comes to car loans. Of course, neither auto dealership nor bank will issue you a credit for your dream car without auto insurance. So in some cases, it becomes obligatory.
When it comes to high-risk auto insurance many people have got one question. Am I a high-risk auto driver? In this article, you will find it out, but let’s first clarify who is a high-risk driver and what is high-risk auto insurance? Usually, drivers are classified as high risk when they make a serious traffic violation or several minor violations. The thing is that you might not even know that you a high-risk driver. Usually, this will be seen by inflated insurance rates but to know for sure whether you are a high-risk driver just contact with your insurance agent.
As it was mentioned if you are in this group of drivers you will need to pay more for your insurance, sometimes rates can be twice as much as usual. Actually, you can try to find cheap insurance for you because insurance companies have a lot of criteria based on which they determine you to different drivers group. Maybe you can just get a small increase in the cost of insurance instead of paying a full price for high-risk auto insurance. All organizations have pretty much the same criteria so they won’t vary greatly.
A list of basic principles that the insurance companies guide when allocating you to a certain driver group will be listed below:
- Strange as it may seem but people who just got behind the wheel of a car are considered by insurance companies as high-risk drivers. They will need to pay more for high-risk insurance. This is due to the fact that new drivers are involved in car accidents much more than experienced drivers according to the statistics. In U.S. companies call this group of drivers “New Drivers Status”.
- Probably the most important criteria – different traffic fines and penalties. Many drivers don’t pay attention to these criteria and it is a crucial mistake. All violations of traffic rules are getting stored for 3 years and are monitored by your insurance company so next time you will need insurance you will have to pay more. The reason for this is obvious – when you are doing road crimes you put in danger not only your car but your own life and life of your friends and pedestrians. However, the price of insurance won’t significantly raise if you made a pair of minor violations but one serious violation can double the price of insurance, so drive safely.
- Problems with alcohol can also make you great trouble. Even if you didn’t violate any rules but still you were caught drunk while driving a car you will get a serious punishment not just from police but also from an insurance company. You will need to afford yourself high-risk auto insurance for the next 3 years. The penalty can be worse if you had a car accident while being drunk. Therefore never drink if you know you will have to drive a car!
- Car crashes. If you were involved in a car accident by your fault it means you will be tracked by your insurance company as a possible high-risk driver. Another car accident will immediately put you into the “High-Risk Driver” group.
- The fifth criteria are age. It may seem strange to hear but age criteria are common in most companies. People of certain age groups are automatically in a high-risk group. Usually, under these restrictions are getting people under 25 years old and elderly people over 70 years old. These rules are found unfair society but they are extremely objective according to statistics. Most tragic accidents happen when drives a person who is not older than 25 years. That is tied up to the fact that most young people don’t have enough experience with cars and are more prone to risk. The situation with old people is different. They drive safer but car crashes in which they get are way more destructive and have the worst consequences on many indicators.
- Not the last criteria are your credit rating. A very long-suffering theme for everyone who has ever made financial operations in their life’s, which means everybody. If you have a bad credit rating you will get a waiver on almost all your applications for different loans and car insurance is not an exception. A good credit rating will benefit you a lot, you will have to pay much less and receive tons of privileges.
- Remember to make no gaps in your insurance policy. If you have a long period of time skipped in your insurance policy due to different factors like contributions non-payment or you simply forgot to order new insurance in time you will surely have a gap in your insurance history. No matter what was the reason for such a gap you will definitely have to purchase high-risk auto insurance.
Now that you know the basics principles which companies are guided by when putting you into high-risk driver group let’s speak about best high-risk auto insurances which are available on the market.
Bristol West
Surely one of the best if not the best option for high-risk drivers. They specialize in high-risk auto insurances and they have the best offers and conditions for their clients. Low down payments are the main perk which the company offers to its clients.
Allstate
Another great option, they offer special liabilities for people who drive for a particular period of time without getting into accidents. For example, after one year without road accidents, you will get $100 off of your collision deductible. They also have a very developed online service and have a mobile app with which you can record or photo the car crash online so you don’t have to contact their department
Summarizing it up please be focused on the road because you surely don’t want to become a high-risk driver and have a lot of difficulties with additional expenditures.
F.A.Q.
What is high-risk auto insurance?
High-risk auto insurance isn't a special policy to satisfy the needs of high-risk individuals. An appointment is given by insurance companies to people who are in the list of risky drivers. The drivers aren't prime candidates for insurance companies and face higher policy rates and fewer options.
How much is high-risk auto insurance?
The list of risks is one of the key parameters affecting the cost of car insurance. The more included in the contract, the higher the price of the service. The cost is also influenced by the characteristics of the car: make, model, year of manufacture, degree of wear, and equipment of the car.
Where to get high-risk auto insurance?
When applying for best high-risk auto insurance, the car owner receives a discount for accident-free driving, or vice versa - pays more for accidents caused by his fault. High-risk insurance includes information on the availability and amount of insurance claims resulting from accidents.
How to save on high-risk auto insurance?
You may be able to find cheap high-risk auto insurance and save by contacting a licensed insurance advisor. That is profitable because the agency keeps up to date on all the latest insurance companies, including those that deal with high- risk drivers.
