Auto Insurance Guide
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High Risk Auto Insurance

Various causes prompt insurers to categorize prospective insureds as “high risk.” This designation is often due to no fault or wrongdoing by the applicant.

In the case of car insurance, individual innocence does not exonerate policyholders from higher rates based on collective guilt, however. Moreover, high-risk motorists typically face a relatively limited range of coverage options.

The cost of youth

Although applicable state laws vary, insurers view all drivers below the age of 21 as relatively risky prospects. Consequently, young motorists pay correspondingly higher auto insurance premiums. A higher incidence of accident involvement is the stated rationale for this “youth tax.”

Effective circumvention strategies

Youthful drivers should not accept this phenomenon with an attitude of total defeat, however. For instance, many carriers offer discounts for young scholars who maintain a minimum grade point average. This academic accomplishment exhibits a greater responsibility level that is likely to extend behind the wheel.

In fact, younger motorists no longer must deal exclusively with high-risk insurers solely because of their age. In prior years, only a few carriers offered high-risk auto insurance coverage.

The handful who did charged extremely high premiums. As more carriers enter high-risk markets, increased competition acts to induce further rate reductions.

Do not be misled

Some high-risk carriers purport not to charge young drivers higher premiums. This claim is misleading, however, because such companies charge all policyholders much higher rates than other carriers do.

You might be amazed at the kinds of things that can affect auto insurance rates. For instance, most insurers charge newly licensed and credit-impaired drivers much higher prices – irrespective of age. Both groups' higher accident involvement incidence is the stated ground for increased premium rates.

A straight path to lower car insurance premiums

Maintaining a clean driving history for at least three years usually prompts insurer “forgiveness” of prior bad acts like accidents and moving violations. This softened collective attitude spawns premium rate reductions.

Avoid DWI and DUI offenses like the plague. Such serious traffic infractions constitute serious criminal offenses. Conviction virtually guarantees immediately auto insurance coverage.

SR-22 is safe detour

Uninsured motorists with at-fault accident involvement and those convicted of serious traffic law violations that result in a collision must file Form SR-22 form with state officials to retain their driving privileges.

SR-22s are official documentation that insurance carriers issue in order to verify active auto coverage sufficient to satisfy minimum state requirements. Although specific state regulations vary, SR-22 certification is generally required for three consecutive years immediately after an insured's conviction or at-fault accident involvement.

Directions to a fabulous financial destination

Maintaining a clean driving record must remain the first priority of any motorist wanting to keep a tight lid on auto insurance costs. Safe driving translates into dollars via lower premiums - while savings lives in the process.

The right auto insurance plan for ALL makes and models!

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