High-risk insurance is an awkward position drivers can find themselves in when seeking vehicle insurance. Unfortunately, some drivers qualify for high-risk auto insurance covers for various reasons. Some fall in this bracket due to their faults, and vice versa. Additionally, falling under this category makes your insurance at least 25% more expensive.
But what makes one a high-risk driver? This post discusses the six causes of the ‘high-risk driver’ tag. Eventually, you will be better placed to know how to avoid them and become a safer bet for auto insurers.
1. Your Credit Score is PoorA poor credit rating affects your insurance safety status. Most insurers consider applicants with a low credit rating riskier because they doubt their ability to pay their premiums faithfully. The logic here is simple: you are more likely to default your insurance payments if you are wallowing in debt.
A debt-free policyholder is the safest bet, followed by those applicants who are faithful in servicing their debts. So, fix your credit rating if it’s flawed. If it’s healthy, avoid unnecessary debts or pay those you have to maintain a good credit rating.
2. You Have Been Convicted of Drunk DrivingTraffic laws are there to protect you in many ways. For example, when the government tells you to avoid drunk driving, it’s for your benefit. A driver who has been convicted of drunk driving is an expensive bet for any auto insurer. This driver is reckless and most likely to cause avoidable and costly accidents.
So, if you are drunk, ask a sober friend to drive you home or take a cab. Otherwise, a drunk driving record will catch up with you even if the government may not jail you. Remember, some insurance companies are so thorough that they can check your DUI record of the past ten years or more, depending on the state.
3. You Have Many Traffic TicketsMost people think that they break the law by committing traffic crimes. But the truth is that you don’t “break” the law. Instead, you only break yourself on the law you refuse to obey; it’s like hitting your head against a stonewall. Committing traffic offenses that earn you tickets is a sure way of becoming a high-risk driver. Therefore, do your best to avoid all instances that could get you in bad books with the traffic police and laws.
Earning tickets for overspeeding, drunk driving, moving violations, and causing accidents earn you a bad name. Remember, most car insurers will vet you against these traffic crimes down to five or ten years behind. To them, you are like an accident in the waiting.
So, obey the law whether or not the police are watching because their absence doesn’t mean you won’t cause an accident. Eventually, the same police officers you thought you had outwitted will be at the accident scene.
4. You Are “Too Old”Circumstances beyond your control can hand you the high-risk driver tag. Most insurance companies deem drivers over the age of 65 high-risk because they are most likely to cause accidents. For instance, drivers in this age group caused 6,784 road accident casualties in 2017, amounting to 18% of all the casualties during that period.
5. You Are a NoviceYou may also earn this tag if you are a novice car owner or license holder. This applies, especially if you get your license when you are 25 years or older. For example, you grew up in an expensive city like New York, where it’s costly to own a car park but cheaper to get anywhere using subways.
Here, you may not see the need to get a driving license when you don’t own a car. You probably will get a driving license when you buy your car, or your job requires you to have one. If you live in such a city, it’s wise to start driving and get a license early enough, even if you don’t own a car.
6. You Are “Too Young”Lastly, you can be flagged as a high-risk driver if you are a teenage driving license holder. Reason? You are still inexperienced in driving, and your maturity level is low. If you find yourself in this situation, don’t despair. Just build a good track record with the traffic department by avoiding all traffic offenses. Soon, you will have a positive record when you turn 25 and enjoy lower premiums.
Several factors within and outside your control can make you a high-risk driver. This post discussed the six leading ones and how to avoid them. Use these tips to avoid qualifying for high-risk auto insurance.