There are several factors that can get you designated by car insurance companies as a high-risk driver that needs high-risk insurance. Keep in mind that different insurance companies might have somewhat varying definitions of what makes a driver fall into this category. Nonetheless, the following factors are usually considered enough to gain you a high-risk driver designation in the eyes of most car insurance companies:
- Major driving violations, including driving at high speeds and getting into serious accidents that are ruled to be your fault.
- A DUI conviction and/or the need to carry an SR-22 policy.
- Several relatively minor driving violations, including tickets for going over the speed limit and minor fender benders that are your fault.
- Being charged with driving without a seat belt.
- Accumulating excessive points for moving violations.
- Being charged with texting and driving.
- Driving without a license.
- Driving without car insurance.
In general, high-risk drivers are considered to be reckless or unsafe drivers because they have problems with some or most of the factors listed above. You may be a relatively safe driver, but insurance companies will consider you high risk if you have some of these dings on your record.
Why Do Car Insurance Companies Have a Problem With High-Risk Drivers?
Insurance companies of all kinds make money by playing the odds. Their goal is to take in more revenue in the form of customer premiums than they have to pay out in claims.
When it comes to insuring motorists, they only “win” with the safest and most responsible drivers. That’s because those drivers are less likely to get into accidents that are their fault, so they’ll cost the insurer less.
Underwriters are the insurance company employees who calculate the odds of paying out certain types of customers based on their past actions or personal profiles. To put it another way, the car insurance companies set their rates based on how low or high the likelihood is that they’ll have to pay out more in claims than they’ll get in premiums paid by various individuals and groups of drivers.
That’s why males typically pay higher premiums than females, and younger drivers pay more for their coverage than older motorists. It’s because, statistically, some groups have more accidents and make more claims than other groups.
High-risk drivers are seen as costing car insurers the most in claims paid out. Drivers who repeatedly get into accidents and drive recklessly cost the insurers money. That’s why high-risk drivers are charged the highest rates for coverage. In fact, some insurance companies refuse to insure high-risk drivers at any cost.
Fortunately, affordable high-risk driver auto insurance is available through some insurers, bringing down the cost as much as possible.
Can I Lose the High-Risk Driver Designation?
Yes, it’s possible to get rid of your high-risk driver designation.
When car insurance companies look into your driving record to determine what rates you’ll pay for coverage, they only go back three to five years to find most violations, depending on the insurance company.
Most of the drivers license points you accumulate for your driving mistakes eventually drop off your record. Over time your record will look cleaner and cleaner — as long as you don’t continue to rack up violations.
It’s not that hard to repair your driving record over time. If you take the following advice, it will go far toward “resetting” your record and earning lower car insurance rates:
- Observe all speed limits
- Never drink and drive
- Wear your seat belt at all times while driving
- Don’t use your phone for calls or texts while your car’s in motion
- Make sure you always have a current driver’s license and tags
- Always have car insurance, even if the premiums are higher than you expect
Following this advice will go far toward repairing your driving record and earning sometimes dramatic reductions in what you pay for car insurance.
But What Will I Do for Car Insurance in the Meantime?
It’s great to hear that you can eventually get a clean driving record that will eventually lead to lower premiums. But you need your car today. So what are you expected to do before those high rates get cut?
It could take years to clean up your driving record, but you must get to work or get the kids to school in the meantime. You have errands to run and responsibilities to meet. You can’t live without your car for a few years until your insurance rates come down. So now what?
Don’t lose hope. That’s our first and most important piece of advice. There are insurance companies that specialize in serving the needs of high-risk drivers. Independent insurance agents — those who don’t work for just one insurance company and have access to several major carriers — can find you more affordable high-risk driver auto insurance.
Your independent insurance agent will go shopping for the most competitive rates from car insurance companies that specialize in offering coverage for high-risk drivers.
We’ll take your budget into consideration and find the best coverage that you can afford and that will keep you legal in your state.
Check Online Today for High-Risk Car Insurance
Your Freeway Insurance independent insurance agent specializes in finding affordable high-risk driver auto insurance. Call us at (800) 777-5620. You can also meet with an agent at a Freeway Insurance office near you or get a quick online quote.