Auto insurance companies avoid risks because they avoid high cost. However, there are some people who are not aware of the risk factors and they end up paying more for their auto insurance policy. Acquiring the right information can help you save a significant amount of money from being offered with high risk car insurance rate.
High-risk auto insurance rate, which involves the driver itself, is defined by auto insurance companies as follows:
The driver received three or more than three convictions for moving violation.
The person has a single violation, guilty plea, within 12-month period for driving a vehicle while under the influence of alcohol, having vehicle negligent injury, operating the vehicle recklessly or having hit-and-run driving.
The auto insurance company classifies driver that requires high risk car insurance rate based on the following:
A driver with DUI or DWI conviction will automatically be categorized as high-risk group of drivers.
Teens are categorized by auto insurance companies as high-risk drivers because they have a high at-fault incident, particularly those within the age of 25, compared to other group of drivers. The explanation to this is that teens are usually aggressive in driving, which is the reason why auto insurance companies offer high auto insurance premium to this group.
Because they are short of driving experience, first-time drivers are automatically charge with higher auto insurance rate.
Women are considered and less risky that do men while people driving in rural areas are less risky that those who drive in urban areas.
A driver involved in a number of traffic accidents is considered as high risk driver though this driver is not at fault. The numerous traffic accidents create an impression that the driver is reckless. Because of this, it will be difficult for the person to find cheap auto insurance policy.
Speeding tickets may be a sign to auto insurance company that you are likely to get into accident.
If the driver has a poor credit history, this may give an impression to the high risk auto insurance company that the driver is likely to get into traffic accidents and thus he/she file more claims.
