High Risk Auto Insurance Factors
Being classified as a high risk driver almost certainly means a bigger insurance bill. But you can still cut the costs! Here are some important steps below that will help you determine the significant insurance factors that may dertermine your rates. Please contact us at (763) 746-3680 for more information!
What decides a high risk driver? Many factors determine this, here are some big ones:
Driving Record. Alright, there is no surprise here. Everyone knows that an at-fault accident will increase your insurance rate, but a ticket & s no-fault accident can too. Why is this? For every speeding ticket you receive, the chance of you being involved in an accident rises by 100%, which being involved in several car accidents, (even if they are "not at fault") this may show a history of reckless driving.
Personal profile. This probably won't come as a surprise to you either. There really isn't much that you can do about it. Insurance companies always consider males a greater risk than females, and that teens are higher risk than adults, along with city drivers being a greater risk than rural drivers.
Your credit history. This may not seem fair on the surface, it is viewed that your credit is a significant factor that increasingly influences other areas of your personal life, which includes insurance. Statistically speaking, records show that drivers with poor credit history have more auto insurance claims than those with higher credit, which is why many companies use this information to classify a high risk driver.
Cutting the cost of auto insurance for high risk drivers:
Step #1 - Getting yourself out of the high-risk drivers category will take a little bit of time. You will need to change some of your basic behaviors (by starting with cleaning up your bad driving record & start paying your bills on a timely manner).
Step #2 -Some factors will fade with time. Please note that most insurance companies rate a driver with zero points for three years as a good risk.
Step #3 -There are a few things that you can do in order to cut your high risk auto insurance costs now. Try and consider driving an older car or dropping collision and comprehensive coverages. If you can accept this type of risk, try carrying a lower amount of other standard coverages.