Auto-Insurance 101: What Is High-Risk Auto Insurance?

Just as the name suggests, high-risk automobile insurance is intended for someone the insurance provider deems to be a high risk. This is someone who has made frequent claims in the past and is frequently at fault for accidents. This is someone who has a history that suggests they are more likely to make claims in the future. If you could be considered "high risk," it is normal for you to want to know more about this type of insurance.

Multiple Claims and Tickets

If you've made multiple claims or received multiple tickets in the past, your insurance costs will go up. You've shown that you're not a responsible driver, and many insurance companies won't want to cover you. They don't want the risk that you will crash your car and cause harm to others. Your insurance premiums will be high and in some cases unaffordable.

Getting tickets also shows you have no regard for the law. You are a higher risk, as you're more likely to speed or drive dangerously, so you're more likely to crash or cause damage.

Other drivers are deemed high risk because of their previous actions. If you have criminal convictions or license suspensions, you will be viewed negatively by the insurance companies. These convictions may not even be linked to your auto insurance. They just show that you have a habit of not following the law and therefore may not when it comes to driving.

Your Age Affects Risk Assessment

If you are a teen driver or are an older driver, you will be classed as a high-risk driver. This means your auto-insurance coverage will have higher premiums.

More teen drivers get into accidents than older drivers. When you're a teen, you've just gotten your taste of freedom and don't have full experience handling different weather conditions and road elements, like black ice and blowouts. Older drivers will have slower reaction times and may suffer from ill health.

Those who are younger drivers will also find that they have had little auto insurance in the past. You've not had that chance to build your driving history, so the insurance companies aren't sure if you can be trusted yet.

Higher Premiums

In the majority of cases, if you're put in the high-risk category, then you will be charged higher premiums. By shopping around, you may be able to find a cheaper quote. You could also increase your deductible so the insurance company doesn't need to pay as much out.

If you are a new teen driver, ask about the good-student discount. There are other discounts for older drivers and those with poor driving histories, so get on the phone to the insurance company and find out more.

High-risk insurance isn't standard and is more costly. Insurance companies want to protect themselves from financial problems, so they put the insurance premiums up to make sure high-risk drivers can still get coverage when they need it.

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