Owning a car of your own always feels good. But there arises a need to insure your car. However, if your driving record is not impressive enough, then it becomes very difficult to get an auto insurance. Usually, this black mark in your driving record is due to several driving penalties that you performed in the past. Mostly, it happens when you are arrested while driving under alcoholic influence or speeding across traffic signals. It is at this time the insurance companies create lots of difficulties when you want to opt for an insurance policy. In most cases, they want you to opt for a policy, which requires you to pay quite a high premium amount. There are two ways to opt out of it. One is to improve upon your driving record and the other one is to opt for a high risk auto insurance policy.
Types of high risk auto insurance
Depending on the extent of the risk factor, high risk auto insurance policies can be classified into the following categories:
Assigned Risk Insurance - It is provided only by the state when the insurance policy of one person is not entertained or taken into account by any of the insurance providers.
SR22 Insurance - This is a rather complex insurance policy, whereby the insurance companies give a return guarantee to the Government regarding the effectual financial cover of the driver to overcome any kind of financial liabilities.
DUI Auto Insurance - DUI simply denotes driving under influence. The auto insurance of any individual who commits this offence will be immediately subjected to termination.
Bad Credit Car Insurance - Almost all the insurance companies do not wish to offer insurance to a person who holds a bad credit or higher claim statistics. Even if they do, the individual should improve his/her credit rating within a specific time, failure of which can lead to the termination of his/her policy.
Who should purchase high risk auto insurance?
The insurance companies take into consideration several factors before labeling a person as a high risk driver. You should only opt for high risk auto insurance under the following criteria:o If your license has been suspended and you are required to opt for SR22 insurance for restoration by US lawo If you are beyond the age of 70 yearso If you are below the age of 20 yearso If you have a record of being involved in car accidentso If you have a bad credit record or high claim statisticso If you have indulged yourself in speed tests and car racings
To sum up
It is highly recommended to drive safely keeping in mind the traffic rules and regulations so that high risk auto insurance never becomes the ultimate solution for you to report to.
