Do you know about High-Risk Car Insurance?
Insurers put many drivers into the higher risk category as a matter of course in their reviews. Not all companies offer high risk policies with many conventional carriers discontinuing customer policies. Driving history as well as vehicle determine this classification. But in short, it makes for higher premiums. Apply with specialized high risk auto insurance carriers carefully and know what you will have to commit.
What makes you high-risk driver?
Customers with a track record of claims are
considered to be of higher risk by insurers and car insurance carriers. Actually,
they consider a number of factors that indicate a customer is likely to file
claim. Insurers look for certain factors that go into determining the higher
risk car driver category. As a general rule, all insurers consider the same
standards with only minor variations.
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| High Risk Auto Insurance |
Insurers put a driver to into the car insurance for high risk category if the driver is:
- New driver, or a driver elderly age
- Has a DUI Conviction
- Has recent traffic violation on record
- Has been in a serious motor vehicle accident
- Has a lapse in policy coverage
What makes high-risk auto insurance different?
When you consider that most States give insurers the right to refuse coverage, higher risk policies become necessary. Once, your service provider refuses you as a customer and directs you towards high risk coverage, you will have to shop for affordable high risk auto insurance with specialized companies. High risk coverage exists because car insurance is a legal requirement.
Higher risk coverage differs from conventional policies in their total annual costs and premiums. Insurers often insist on entire premium upfront so drivers can benefit from adequate financial safety coverage. Certain higher risk policies show up limitations and or exclusions to reduce financial losses through specific type of claims. For example, these policies may limit who can be listed as drivers. Claims where drivers in an accident under 25 may not be considered as per the agreement contract.
Minimum liability coverage satisfies legal requirement and saves a lot on car insurance costs but leaves such drivers vulnerable. It does not cover for injuries and expenses for the driver. On the other hand, high risk auto insurance coverage policies insist on charging for comprehensive as well as collision compensation.
What about high risk car insurance costs?
The good news is some factor raise premiums
more than others depending on what formula your service provider uses. DUI
convictions double the rates, speeding tickets increase it by 35%, and bodily
injury claims raise costs by 37%. The worst hit are bad credit customers with
premiums higher by 69%.
