What is High Risk Auto Insurance?

High Risk Auto Insurance

When it comes to auto insurance, there are just some vehicles and drivers who are considered higher risks than others. Because of this, the auto insurance premiums will be high as well to reflect this.

Basically, there are a couple types of drivers out there. There are the ‘low risk’ drivers and then the “high risk” drivers. Auto insurance providers consider high risk drivers as people who are at higher risk of making claims because of many factors.

For instance, you might be thought of as a high risk driver in the insurance company’s eyes if you:

  • Have a credit history that’s poor.
  • Have one or more accidents involving your car.
  • Have received traffic citations like speed tickets.
  • Have been convicted of a DUI or DWI.

Also, young and first time drivers also qualify as high risk.

Young Driver

If you are a young driver (student) you would qualify as high risk. Youth drivers are at a greater risk of getting into auto accidents, therefore, insurance providers will up their rates accordingly.

First Time Driver

No matter what age you are, if you just received your license, you will likely be considered a high risk driver and your rate will be higher than seasoned drivers who have held their license for longer periods of time. However, there are ways around this. For instance, you can ask a friend or member of your family to add you to their current auto policy which will ensure your premiums will be much lower when it’s time to take out your own policy.

Even if you can’t find someone to put you on their policy and think that insurance companies won’t insure you because you are a ‘high’ risk, there are usually always companies out there that will. Of course your premiums will be higher than the norm, but at least you will be insured and they will get lower as you get more experienced driving or after a certain time period has gone by since your last citation.

As with any auto insurance shopping, it behooves you to compare prices since you will always find one company that offers lower payment options than another. Just be sure to get the right kind of coverage for your automobile which is the most important.

The good news is that BOLT Insurance Agency is an independent insurance agency. This means that “we” do the insurance shopping for you. For a complimentary auto insurance quote from BOLT Insurance Agency, click here.