If you pay for an auto insurance policy, you may notice that your premiums go up and down over time. While many factors can contribute to this, most noticeably your profile as a driver will help insurance companies to determine your level of risk as a liability to them. The lower the risk of collision or injury, the better your pricing will be, since they are projecting to cover any costs you incur with the premium that you pay.
If you’re labeled a “high risk” driver, your insurance premium is probably more expensive than other drivers, since the insurer uses your profile and your driving history as an indicator of safe and responsible driving. The higher the possibility that they’ll have to pay for damaged property and medical bills, the more you’ll pay for your auto insurance.
Some reasons you may be considered high risk are:
• Having a lapse in auto insurance coverage
• Having too many tickets, violations, and/or accidents within a year
• Having poor credit
• Receiving a DUI or DWI
• Driving a ‘high risk’ vehicle when you’re already considered a ‘high risk’ driver or a driver who is close to being high risk
• Being a young driver
• Living in an area identified as high risk, such as Miami, where accidents and claims are more likely to happen.
• Having multiple accidents, regardless of who is at fault
Obviously, if you have a record of traffic violations or accidents, it will indicate to insurance companies that you may be a high-risk driver. However, even with a perfect driving record, there may be more set parts of your profile that you aren’t able to change, since it’s based on your age, sex, location, and distance from work. Based on statistics, auto insurance companies favor these groups as safer and more low risk:
• Women over men
• Adults over teenagers
• Rural residents over urban residents
• Parents and those who are married over most single drivers
If you are under 25 years of age, are a new driver, are a male, are a student, have a history of filing claims, or have bad credit you may be automatically placed in a high-risk category. However, there are steps you can take to help prove that you’re a responsible driver, thus showing you’re less of a liability to them.
First and foremost, time is going to be your best friend. There may not be a quick and easy way to improving your profile and lowering your risk as a driver, but by establishing or re-establishing a good driving record by avoiding traffic violations and not being involved in accidents, even those where you’re not at fault, it will slowly work in your favor. The longer you’ve been a driver with a reputable driving history, the more appealing you’ll be to insurance carriers.
Freeway Insurance can get you insured, regardless of your driving record. Request a free high-risk car insurance quote online and compare rates to find an auto insurance policy that fits your needs and budget.