Getting Car Insurance if you are High Risk

June 18, 2010 by  
Filed under Car Insurance Tips

If you are considered a high-risk driver, finding car insurance can be quite a pain. Many insurance companies will deny insurance to high-risk

drivers, while others just choose to charge extremely high premiums. So it is important to shop around for the best rates available.

There are many different factors that can label you as a high-risk driver. However you’re driving record is the most important factor in determining your risk status. Most insurance companies will check your driving record for the past 5 years. Being involved in any accident and/or several accidents or tickets can deem you a reckless driver. You may be labeled a high-risk driver just by the number of speeding tickets you have received.

There are also several personal factors that contributed to the high-risk label. Unfortunately, many of these factors are beyond your control. Men are typically deemed a higher risk than women, and those who live in the city are considered higher risk than those who live in the country. If you are a city dweller, you will probably pay higher car insurance premiums than if you live in the suburbs or in a rural area. Also, drivers with newer cars are charged higher premiums than those with older automobiles.

Even your credit history can affect your car insurance rating, though these laws are changing due to the fact that a person’s credit rating should have no basis on their insurance rate. Those with low credit ratings are usually charged higher premiums than those with better credit scores. Whether or not you have been covered by car insurance continuously is also a factor. If there are gaps in your coverage, they will assume that you have had periods of uninsured driving. Because driving without insurance is very unsafe and also very illegal, insurance companies take this into consideration when considering your rate.

Though it can take several years of clean driving to erase the high-risk driver label, it can still be done. Three years is the industry standard for reassessing a driver’s safety rating. If you have a clean record for a three-year period, you can work your way back to the benefits of lower premiums. However, three years’ worth of high premiums can really add up over time. If you are a high-risk driver, there are still ways to lower your insurance payments. With a little research, you can reduce your payments by a fair amount.

There are many car insurance companies that offer free quotes online, this makes comparison-shopping easier than ever. There are even websites that will find a list of quotes for you. This process may take a few days, but the results are typically worth it.

Having a clean driving record is the best way to ensure that you will get the best car insurance rates. Being aware of where you are and those around you and keeping your speed within the limits will keep your driving record good and this in turn will keep your insurance rates down. Remember the better a driver you are, the lower (usually) your insurance rate will be.