Are you a high risk driver? This is a question you need to ask before you begin to search for car insurance coverage. You may not think you are seen as high risk by insurance companies, but there is a good chance that this could be the case.
Tip: there is nothing wrong with asking an agent if you are high risk. They are more than happy to provide you with this information, including why you are in this category and what you can do about it.
Most commonly, people fall into the high risk category for one of three reasons:
- Multiple accidents
- Multiple speeding tickets
- DUI on their record
Of course, there are many other factors that can lead you into this category.
While the following factors do not necessarily push you into the high risk category, you will definitely be moving in that direction.
1. Bad Credit
Many people find it hard to believe that their credit score is taken into effect when determining how much they pay for auto insurance. You cannot be denied for having bad credit, but it can be a big factor in deciding your premium.
2. Lapsed Coverage
Did you fail to pay your premium in the past? Did this result in having your policy cancelled? If so, you are going to pay a higher rate in the future.
3. No Driving History
As excited as you may be to get your driver’s license, as a new driver you will be hit with a higher rate than more experienced drivers. The only good thing is that as you get older your premium will come down – if you stay out of trouble on the road, of course.
4. The Type of Car You Drive
There is no denying that some cars cost more to insure than others. For example, if you drive a sports car you are going to be seen as a higher risk than somebody who drives a minivan. In addition to the power under the hood, it typically costs more money to repair these types of vehicles.
5. Your Job
Do you drive long distances every day for work? If so, you are going to be hit with a higher premium. In the eyes of your isurer, the more you are on the road the better chance you have of being involved in an accident.
You may be considered a high risk driver if you can identify with one more of the factors above. If you find that more than one of these factors pertains to you, there is an above average chance that you will fall into the high risk category.
Fortunately, you can fix any situation that you are facing. It may take some time to get back on the right track, but if you put your mind to it you may be able to break away from being labeled a high risk driver.
If you want to see where you stand get your risk/rate score with our auto insurance quiz.