Do I Need A High Risk Auto Insurance & How To Find Best?

Do I Need A High Risk Auto Insurance & How To Find Best?


Almost everyday different problems arise, which are starting to accumulate and therefore require urgent solutions. This type of problem includes high risk auto insurance, taking a lot of time and efforts.

Few people would like to just pay large sums for car insurance, especially when you are classified as a high-risk driver. Moreover, in such situation it will be quite difficult to find a cheap but comprehensive coverage for your car. If you look at the rates that are offered by insurance companies for this category of drivers, they can simply drive many of us crazy.

But how to find out if you belong to this high-risk category or not? In fact, there are quite a lot of various ways in which insurance companies assign a particular driver to a particular risk group. If you are in a high-risk group and at the same time are looking for low-cost insurance for your car, then we suggest that you familiarize yourself with the criteria, which according to most insurance companies provide drivers with insurance.


In this case, you must first find out whether you really are a high-risk driver. To clarify this issue, you need to pay attention to the following criteria:

  1. New Driver Status. Even if you have never had an accident, but only recently got behind the car wheel, your high risk auto insurance will cost you more than for an experienced driver with many years of driving experience. This happens because insurance companies believe that drivers with little driving experience get into accidents much more often.
  2. Traffic tickets. And although many of the drivers believe that getting traffic tickets is their private affair, they are deeply mistaken. Insurance companies take this fact very seriously because by violating traffic rules, you put at high risk not only your car but your `own life, and the life of your passengers. Traffic fines are stored in your history with the insurance company for three years and this fact also increases your car insurance cost. In addition, the insurance price will also affect the seriousness of the offense. If it is not so big and did not lead to serious consequences, then increase in your car insurance costs will not be so significant.
  3. DWI or DUI. The biggest criteria for increasing car insurance is driving a car while intoxicated or under the alcohol influence. Only one such fact immediately takes you to the category of high-risk drivers for a period of not less than three years! And this entails an impressive increase in the cost of your car insurance policy. The situation can be even worse if in this state an accident happened. You can also, in addition to high risk auto insurance, get yourselves into driving license cancelation for a certain period.
  4. Fault accident. Participation in one accident may not lead the driver to the high-risk category, however, if you get caught again in the next three years, then falling into this category will be guaranteed! In such cases, the entire severity of the consequences and the resulting damage is also taken into account.
  5. Certain age groups. This may seem like a real discrimination but insurance companies are sure that drivers of a certain age group are more likely to get into accidents. Therefore, based on this fact, most insurance companies automatically assign you to a high-risk category only based on your age. Drivers under 25 years old or over 70 years old are usually referred to these high-risk groups. If you look at the statistics, you can see that the largest number of accidents is really in the account of young drivers. As for older drivers, statistics show that although the total number of accidents is smaller their severity and level of damage is much higher than all other age groups.
  6. Сriminal traffic-related charges existence. Sometimes it happens that a road accident due to some serious associated factors can lead to criminal charges. For example, this can happen when a serious accident with severe consequences for its participants can be charged with car homicide. For any insurance company, only one such case will be enough to immediately take this driver to a high-risk category and as a result of this, the cost of insuring his car will rise sharply.
  7. Poor Credit. When concluding a car insurance contract, companies pay special attention to the driver’s credit history and evaluate possible delays in their payments. Therefore, your good credit history can play a positive role and a bad one will contribute to an increase in insurance premiums.
  8. Big gap in your insurance policy. Another factor that can seriously affect the cost of your car insurance. If your insurance policy was stopped due to contributions non-payment or you refused to take out insurance and did not have time to issue a new one, then a certain gap is surely formed in your insurance history that will play its part in determining the insurance cost from any insurance company. Despite the reasons that led to this, companies will automatically classify you as high-risk drivers.
  9. Multiple Claims. Although there are a sufficiently large number of claims that do not necessarily follow from accidents that have occurred, for example, when another car hit your car and its driver disappeared from an accident scene or hail damaged painting on your car, you cannot claim a runner driver or weather. In this case, your insurance company will not be able to recover its losses and will simply classify you as a high-risk driver.
  10. Some criminal convictions. In most states, insurance companies have their own list of criminal misdemeanors and crimes, according to they can assign certain drivers to high risk auto insurance and to more expensive car insurance policy.

After learning about all the possible criteria for the high-risk category, you will need to proceed to the next stage, which includes certain steps to its reduction. There are also opportunities to fight questionable road citations, which can negatively reflect on the cost of your insurance policy.


Lisa Mcdowell Expert in loans, credit cards, insurances, and your personal, responsive guide to a bright financial future.