Insuring a high risk driver. Oh, the stress!

If you are a high risk driver, you’re aware of the high premium rates associated with it. When deciding your rates, insurance companies calculate how much of a risk you pose to the company. In other words, how high the chances of you making a claim are. If you are considered to be a high risk driver, chances of you being involved in an accident are higher; which in return means the likelihood of you making a claim is higher. Let’s take a look at what it takes to insure a high risk driver and what you can do to reduce your auto insurance rates.

What qualifies you to be a high risk driver?

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As mentioned earlier, insurance companies regard anyone more likely to file a claim as a high risk driver. These people are usually those who have had two or more accidents over the past few years, or inexperienced, teenaged drivers out on the roads for the very first time. Someone with multiple tickets on their driving record is also considered to be a high risk driver. You could get a ticket for speeding, not wearing a seat-belt, running a red light, driving under influence or making an illegal turn. It’s easy to get a ticket if you’re not careful, so your best bet is to follow traffic rules and be a cautious driver.

How does your driving record impact rates?

Insurance companies take a look at your driving record to assess the kind of driver you are and whether insuring you could work out expensively for them. If you have been involved in an at-fault accident, chances of being quoted a higher rate is greater, but you should know that there’s a chance you’ll be quoted a higher rate even if you’ve been involved in a series of ‘not at fault’ accidents because it might suggest the possibility of reckless driving.

How does credit history impact rates?

You credit history DOES affect your online car insurance rates. Insurers check your borrowing and payment history to gauge the level of risk you pose to the company. Your credit score gives insurers an idea of how prompt you are with payments, if you’re punctual or carelessly let dates slide. Insurers are apprehensive of insuring people who are careless about deadlines. Simply put, the higher your credit score, the lower your premium rates and vice versa.

If you’re considered to be a high-risk driver, what should you do to change things?

If you have been labeled as a high risk driver, it is time to get your act together. This will include making some serious changes like paying your bills on time and cleaning up your driving record. Enroll in a defensive driving course and consider installing security and anti-theft devices to your car. There are some insurance companies that provide discounts to people on their auto insurance if they do. If you’re more careful on the roads, you will be favored by insurers.

Being a high risk driver doesn’t have to be the end of everything. You CAN get your act together by making some changes to your lifestyle.


About elvis100 (2 Posts)

Elvis Donnelly is a father of two who works from home and lives with his wife. She is voracious reader and always looks out for happening topics related to personal finance. She specializes on subjects related to car insurance and uses her spare time to write on topics related to classic auto insurance and auto insurance.


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