What is High Risk Car Insurance and Who Needs It? Everything You Need to Know Before Purchasing Your Policy

high risk car insurance

What is High Risk Car Insurance and Who Needs It? Everything You Need to Know Before Purchasing Your Policy

high risk car insurance

Insurance is all about calculating risk. If you have had multiple accidents, violations, DUI, financial issues, or are simply a new driver, you may need to consider a higher risk car insurance policy. 

In 2017, there were 3 million traffic tickets issued in Florida alone. Before you know it, these tickets can creep up and you can find yourself having a hard time getting a standard auto policy.

Unsure about high risk car insurance? We’ve got you covered. Check out more about high risk insurance and get your questions answered.

What Is High Risk Car Insurance?

High risk insurance is not a specific policy to fit the needs of higher risk drivers. It’s a designation given by insurance carriers to people that meet the profile and their definitions of risky drivers.

Most insurance companies do not find risky drivers to be the ideal candidate for a standard auto policy. These drivers are faced with higher premiums and fewer options for auto insurance.

What Is a High Risk Driver?

There are several factors that make a driver high risk. This includes things that happen on and off the road.

Some of the considerations that are used to determine a high risk driver include:

  • Number of claims on previous insurance policies
  • Number of tickets
  • History of at-fault accidents
  • Inexperience
  • Non-payment of auto insurance premiums

The insurance company will use these factors to determine if someone is high risk. If you fall into this category, your premiums will go up, your insurance could not renew your policy, and you may have to search harder for the right insurance company. 

If a company refuses to renew your policy, you may face problems trying to find another insurance company. The law requires you to have auto insurance, so you the auto insurance industry cannot prevent you from this coverage.

Some other drivers considered high risk may not have bad driving records. Sometimes, insurance companies consider a high-value car or highly specialized vehicle as “high risk.” 

If you have poor credit, you can also fall into the high risk category.

The Price

If you need high risk insurance and are afraid of the cost, remember that driving without car insurance is illegal and will cost you a lot more in the long run. If you get caught driving without car insurance, it could cost you thousands of dollars in damages, and you will most likely lose your license and incur legal expenses. 

Don’t think you won’t get caught. Each year, there are 6 million car accidents in the U.S. All it takes is a simple fender bender, and it doesn’t even need to be your fault.

There is some good news. You can find affordable high risk car insurance just by looking at the right places. Before you start shopping for high risk car insurance, there are a few things you need to consider.

Having poor credit can also cost you a lot of money. Depending on your age and other factors, people with poor credit that are considered high risk can pay up to $1,000 more a year than average drivers.

You Can Still Compare Prices

You can shop around before choosing an insurance company. You can compare high risk policies for pricing, coverage, and financial stability. When looking for insurance you want three things: coverage options, excellent service, and, of course, competitive pricing.

There are companies that insure high risk drivers. They understand your financial and personal situation. 

Not All Auto Insurance Companies Have a High Risk Option

There are various insurance companies out there. Some insure those with the best driving records and others insure the more high risk drivers.

This means your current insurance company may not insure you if you move to the higher risk category. You should do your research and find a company that offers insurance for your driver classification.

SR-22 Is a Form

Some people think than SR-22 is a type of insurance—it is not. The SR-22 is a document the insurance company files with the state to verify that an individual has met the legally mandated coverage.

Courts and/or the states sometimes require an SR-22 for those with severe driving violations. It’s important to note that not all companies offer an SR-22, so you need to consider this if you need one.

You Will Not Always Be Considered High Risk

Mistakes happen — it’s a part of life. So you made a few bad choices, you can turn that around by making good ones.

Each state determines how long each penalty stays on your record. Your insurance company may also offer suggestions on how to reduce any points on your license.

You may want to consider defensive driving or traffic safety courses if your insurance company offers a discount. By taking these positive steps, you can start moving to a “lower” risk category.

Keep making good choices by being mindful of parking and traffic laws. Choose a car with advanced safety features. And, avoid accidents as much as possible by being a defensive driver.

Take steps to improve your credit if you have been down on your luck. Pay your bills on time and begin working on any outstanding debt. Improving your credit can also improve your rate.

Looking for High Risk Auto Insurance?

If you need a high risk auto policy, you have come to the right place. We specialize in high risk car insurance and work with multiple carriers like Dairyland, Progressive, Foremost, and National General.

Contact us today. We are one of the largest high risk auto insurance experts in Florida. We are here to help you with your insurance needs so you can find the right policy for you. 

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