The word risky has a negative denotation. It denotes possible loss, injury, hazard, jeopardy and/or danger. For auto insurance companies, "risky" is a very familiar term in that it is one category in classifying drivers. They use the category high risk and low risk drivers. Between the two, the first has to pay higher premium.
Why the difference? Car insurance companies rationalized that high risk drivers are charged higher premiums. It can be more than 25-100% higher than the normal liability insurance because of the risk they impose to car insurance companies. Basically, one gets insurance so that he will not pay for all the expenses such as car damage due to accident.
In this premise, high risk drivers are charged higher because according to research they are more likely to be involved in road accidents. This is the reason why they have to pay higher insurance rates than the others. Insurance companies have to shell out more money for them.
What are the criteria of classifying high risk drivers? Someone belongs to the high risk category if he has multiple traffic violations in his driving record, involved in major accidents, driving with inadequate coverage, number of endorsements in his license, etc. Moreover, they are assessed whether they can pay regularly or not for their auto insurance.
Young and elderly drivers are also included in the high risk category. Teenagers are considered high risk especially young males because they are more likely to be involved in accidents because they are not yet that skilled compared to adults. They are also immature in dealing with situations that need good judgment while on the road.
As for the elderly, they are considered high risk because of the health problems that comes with age. However, they may still be eligible for car insurance as long as they provide medical proof that they are still capable to drive safely.
There is one criticism in classifying people in categories because if a particular group is classified as high risk, people who belong in it will have to pay high premium even though they are safe drivers such as the young males or teenagers.
High risk drivers are the most disadvantaged when it comes to applying for insurance because auto insurance companies may deny them or as expected have to pay higher premiums that is why they are advised to take measures that are geared towards becoming a low risk driver.
Want to check if you are a high risk driver? Check out your driving record from the Department of Motor Vehicles (DMV) and pay fines for any pending violation. Ask them how to get out of the high risk category.
Look for car insurance tips. These are readily available in the internet. If you want to look for lower rates, look for online auto quotes. These quotes are free so you should not worry of extra charges. Shop around but do not fall for unbelievable offers because they can be scams.
Lastly, talk to a car insurance agent of the company of your choice and tell honestly what coverage you need. Don't ever tell lies just to get low cost auto insurance because they counter check their costumers' profile like driving record, credit report and insurance claims.
