From a car insurance viewpoint, a high-risk driver is the one that raises claims repeatedly. This situation is not pleasant for both — the car owner and the insurance company. While there can be several reasons behind being classified as a high-risk driver, the after-impact on your finances can be ruinous. In simple terms, if you are a high-risk driver who enlists claims frequently, then the ratio of the losses of your car insurance company due to their expenses arising out of your claims is higher than the amount of your car insurance premium.
Similarly, high-risk auto insurance is the coverage you opt for when you are classified as a high-risk driver with a higher risk of getting into an accident and filing a claim than an average driver.
This is one of the significant reasons why some insurance providers might not be willing to cover you, while others will offer higher premium rates. Thus, being a high-risk driver will leave you with fewer options for cheap car insurance. However, taking the assistance of a reputed high-risk auto insurance broker company can help you take the load off your shoulders.
How Do Insurance Companies Define a High-Risk Driver?
Depending on the different insurance-providing companies, the definition of high-risk can be subjective. For starters, you can be classified as a high-risk driver if you have a driving-under-the-influence (DUI) ticket. Other reasons can include receiving driving tickets constantly, non-payments on your records, at-fault accidents, or a combination of all these events.
Fortunately, you can always consider consulting with a high-risk insurance broker company to fetch a reliable insurance policy for your automobile at a cost-effective price.
Here are a few examples of individuals that some insurance companies might consider high-risk drivers:
- First-time drivers.
- Teenage drivers.
- Drivers with lapsed coverage.
- Drivers aged 65 or older.
- Drivers with no or poor credit.
- Drivers with prior DUI and DWI convictions.
- Drivers with moving violations.
- Drivers with other serious offenses.
How Much is High-Risk Car Insurance?
Generally, high-risk car insurance costs more than ordinary car insurance. Being a high-risk driver can often leave you with no choice but to accept premiums double or even triple the standard amount. However, one of the practical ways to find a good deal on car insurance is by obtaining quotations from different insurance providers and comparing their quotes.
How can I Manage and Improve my High-Risk Driver Status?
If you are currently a high-risk driver, you should consult a well-experienced insurance service provider to get out of the high-risk pool. You can also consider practicing the following tips to become a low-risk driver:
- Learn speed management.
- Strictly obey the traffic rules.
- Maintain a safe distance from other drivers.
- Maintain the correct posture while driving.
- Avoid taking part in any illegal racing or other criminal activities.
- Be alert while driving.
- Do not drive under the influence of alcohol or other substances.
Are you finding the world of insurance policies challenging and need help from an expert in the Ontario region? Look no further than Youngs Insurance Brokers Burlington Inc.! We are independent insurance brokers helping our clients choose the right insurance for themselves for close to a century and value establishing long-term relationships with them. Our experienced professionals will help you navigate through your insurance options and make you understand your scope of coverage from all perspectives.
Call us at 1(289) 768-6231 or click here to request a free quote or call for Automobile, Home & Property, or Commercial Insurance.