What You Need to Know About High Risk Auto Insurance
Wondering what high risk auto insurance is and whether it applies to you? This is something that we often get asked about here at Insurance Buddy, so we thought we’d do up a post to share the ins and outs. Let’s get into all the details…
What do car insurance companies consider high risk?
Most commonly, when an insurance provider is talking about high risk auto insurance, they are referring to insurance that would apply to someone deemed a high risk driver (we’ll get into that a little further below).
Another high risk flag could be a car owner that has a poor credit history.
Some insurance companies also consider different makes or models of cars higher risk and this can affect the insurance quote you get. The safety record or features of a car can make a difference.
What is a high risk driver?
As we mentioned, usually high risk auto insurance is related to someone who is deemed a high risk driver.
High risk drivers generally fall into 2 camps:
1. Those with a poor driving record
Insurance providers look at driving records when calculating their rates. So if you’ve gotten lots of tickets for violating traffic rules, that will affect your insurance. The more traffic violations associated with your record, the higher risk you are considered to be. The severity of the violation also factors in here. So to be charged with impaired driving, for example, will hold much greater insurance repercussions than a minor speeding ticket.
2. Less experienced drivers
Teenagers and those who have just gotten their drivers license are commonly flagged. Teens are often less careful when driving and insurance companies take this into consideration.
What does this mean for your insurance?
To put it simply, if you’re considered high risk, the insurance company will want to charge you higher premiums to cover the additional risk they see in insuring you. High risk drivers make more claims, get into more accidents and cause more infractions, so insurance companies charge them more to cover the costs associated with medical expenses and damage to or loss of the vehicle. In some cases, companies may even refuse insurance altogether if they feel that the applicant is too high risk. When searching for insurance, be sure that who you are dealing with does in fact offer high risk auto insurance options. Some companies simply don’t.
How much higher the premiums are for high risk drivers versus their clean driving counterparts really depends on the particular situation and the specific insurance provider. High risk drivers can expect rates anywhere from 25 – 100% higher than those for drivers considered normal or low risk.
What can you do to get cheaper rates?
High risk auto insurance can be expensive. If you fall into the category of high risk, it’s highly likely that cheap car insurance is simply not possible for you. One of the best things you can do to ensure that you get the best rate is to do some comparison shopping. Not all providers or agents will offer the same pricing, so you may find a way to save money by looking at different options. Shopping around can definitely be time consuming. Gathering several quotes online is often the fastest, most efficient way to do your research.
Another great way to save on insurance is to combine insurance plans, buying them from the same provider. The most common way people do this is by purchasing their auto and their home insurance from the same company. Many providers will offer discounts for those that buy more than one policy. They may not advertise this, so be sure to ask! If you currently have auto insurance from one provider, and your home coverage from another, contact each company to see what they can do for you if you get both plans from them. It never hurts to ask and you just might find that you will get a better deal.
Don’t just ask about combining plans. Ask in general what you can do to lower your rates. Different providers have different ways they can help you save money. Some companies will give you a lower rate if you have a special safety or security device installed in your car, for example. Telematics, also known as Plug and Save, a device that monitors your driving, is another way you can save based on your usage. Any action you can take to lower your risk will help insurance companies look upon you more favourably.
And it kind of goes without saying – if you’re a high risk driver, it’s time to clean up your act! By improving your driving and reducing the amount of traffic violations plaguing your record, you will eventually be in line for cheaper insurance.
More resources on high risk auto insurance
We hope this helps to shed some light on the topic of high risk insurance. Have any further questions? Want to find the best rate possible? Contact us today at 1-855-237-2905 or or get an online quote for auto insurance today!