High-Risk Auto Insurance
High risk auto insurance is a term that applies to people who, due to either a poor driving record or specific circumstances relating to what they did with their car, are deemed by auto insurance companies to be costly to insure. They are more likely to get into an accident, as opposed to other drivers, and have a higher chance of incurring expenses for an auto insurance company. This is not unlike people who must pay higher rates for bad credit auto loans because of poor credit history.
What are the factors in determining whether someone will have to purchase high-risk auto insurance? First and foremost, your driving record. If you are in your 30s and have a history of accidents, both big and small, auto insurance companies will come to the conclusion that you are accident prone. It wont matter whether youre never to blame in any of them the fact remains that if you have a poor driving record, you are going to be seen as a potential problem.
Another factor in determining high-risk auto insurance is your personal profile. Auto insurance companies look at accident data and statistics, and its clear that, on average, men get into more accidents than women. Teenagers get into more accidents than the elderly. People who live in cities and have to deal with a lot more street traffic get into more accidents than people living in suburbs and especially rural areas. These are just plain facts, supported by years and years of American accident statistics. So, you can be fairly certain that if you are a young, urban male, with a few accidents under your belt, you are going to be in danger of being deemed a high-risk auto insurance candidate. The bottom line here is that this will translate into higher insurance premiums, no doubt about it.
There are ways, however, to cut costs if you are a high-risk driver. Consult with an auto insurance specialist to find out what kind of risk you might be, and how you can lower your monthly premium and improve your standing.