What exactly is high-risk car insurance?
High-risk vehicle insurance, also known as nonstandard auto insurance, protects drivers that insurance companies think are more likely to file a claim, be inconsistent payers, or be involved in an accident. While high-risk vehicle insurance premiums are usually more expensive, drivers may improve their records and potentially be removed from the high-risk category over time.
What exactly is a high-risk driver?
High-risk drivers are those who have a higher-than-average chance of filing a claim, causing an accident, committing a traffic infraction while driving, or failing to pay their premiums. While there are no hard and fast standards on who is considered high-risk, you might be labeled as such depending on your:
If you have a severe offense on your record, such as a DUI or DWI, you will most likely be labeled a high-risk driver. The same may be said if you have a string of minor traffic offences, such as speeding tickets.
Young drivers and individuals who have not held a driver’s license for a long time are statistically more likely to be involved in accidents than more experienced drivers. The risk, like rates, gradually reduces with time, but begins to rise again when drivers reach their 60s or 70s because to the increased chance of eyesight problems and slower reaction times.
Auto insurance failures in the past
Allowing your vehicle insurance to expire, even if you have a clean driving record, might cause insurance companies to consider you a high risk to insure. Whether your insurance gap was unintentional or the consequence of a difficult financial decision, there is some good news: if you act fast and inform your insurance carrier, you may suffer only minor fines.
How long have you been classified as a high-risk driver?
There is no common timeframe for becoming a high-risk driver; each motorist is assigned a unique label depending on their driving history and other variables. For example, if you have numerous significant infractions, you will almost certainly be classified as a high-risk driver for a longer length of time than someone with minor offences.
Violations such as speeding tickets accrue points on your driving record. After a specific period of time, these points are usually deleted from your record. Points will ultimately go off your record if you keep a clean driving record over time, and you will no longer need high-risk vehicle insurance.
Why would you require high-risk car insurance?
There are several reasons why you could need high-risk vehicle insurance, including:
DUI conviction: If you are convicted of a significant offense, such as DUI, your insurance rate will most certainly be affected for at least three years.Driving while your license is suspended:A infraction, such as driving with a suspended license, will most certainly affect your insurance premiums for at least three years.Conviction for hit-and-run: If you are convicted of a hit-and-run, you should anticipate the violation to effect your insurance rate for at least three years.
Accidents caused by someone else:When you are at fault in an accident, your vehicle insurance company is liable for compensating drivers for injuries or property damage. This increases your risk as a driver. It’s vital to understand that if you make a claim for a single-car incident, you’re normally judged to be at blame.Several speeding tickets:Every speeding citation results in points on your driving record, and each point raises your chances of being classified as a high-risk driver. Depending on where you reside, you may be able to attend a defensive driving course to avoid having your penalty points added to your record.Bad credit history: When you apply for insurance, most insurers will look at your credit history to assess your capacity to make payments and prevent a lapse in coverage. Bad credit may necessitate the purchase of high-risk vehicle insurance.
History of insurance coverage:A gap in your vehicle insurance raises your risk as a motorist.Driving without insurance is a severe offense that may result in not just a blemished driving record, but also significant penalties, having your car seized, or even losing your license.
What is the cost of high-risk vehicle insurance?
Rates for high-risk vehicle insurance will vary depending on your specific situation. The easiest way to find out how much it will cost is to seek a free online quotation or chat with a local agent.
Car insurance rates for DUI drivers
A DUI conviction on your driving record will almost surely result in an increase in your vehicle insurance rates. If you continue with your existing provider, they will almost certainly boost your premiums to reflect your increased risk. If your provider does not provide high-risk vehicle insurance, they may dump you; thus, you must locate another company that does. What else do you need to know about vehicle insurance after a DUI?
Car insurance rates for drivers who are at fault in incidents
If you cause an accident, your insurance premiums will rise—how much higher depends on a number of factors. The amount your premiums will increase will vary based on your state and the carrier’s filed rates, just as each state establishes its own minimum needed vehicle insurance limits. Other considerations include:
- The accident’s severity
- Your previous claims history
- Your driving history
- Where can you get high-risk automobile insurance?
- While not all insurance companies provide high-risk or nonstandard vehicle insurance, we do, including DUI insurance and SR22 insurance.
- How can you reduce the cost of your high-risk vehicle insurance?
- Fortunately, there are methods to minimize your coverage costs and finally shed your high-risk status:
Increase your credit score.
In most jurisdictions, your credit score is linked to your risk as a customer; drivers with lower credit scores are statistically less likely to pay their premiums. Even if your low credit score is the consequence of past missed payments or financial difficulties, it can still contribute to increased vehicle insurance costs.
That is why, over time, improving a negative credit score might help decrease your rates. You may begin boosting your credit score in a variety of ways, including:
- Making timely payments
- Examining your credit report for mistakes
- Getting rid of credit card debt
Maintain safe driving practices
Because your high-risk status is mostly determined by your driving record, one of the most significant measures for decreasing your insurance prices is to drive carefully and prevent accidents, therefore removing points from your driving record.
Maintain constant auto insurance
Many insurance companies consider drivers who have not had continuous coverage for six months to be high-risk drivers. You should always get automobile insurance if you own a registered vehicle.
Even if you don’t own a car but need to drive on occasion, a non-owner insurance coverage can assist protect you if you’re judged to be at fault in an accident while driving a car you don’t own.
Make use of public transit.
If you have access to public transportation, such as a bus or train, take use of it for journeys such as your daily commute. This might help you avoid typical regions and times of day with increased chances of accidents and traffic infractions, especially in high-traffic zones.