Why Your Insurance Company Cancelled You for Being High Risk in Floridaadmin
Did your car insurance company just cancel your insurance after the last ticket that you received? Have you just received a notice that your current Florida auto insurance policy is no more? If so, then it’s likely you’ve been labeled as one of many high-risk drivers.
Big-name insurance companies such as State Farm, Allstate, Geico, USAA, and Liberty Mutual all cancel people that have a bad driving record. Rather than take on the risk, they remove themselves from the equation. But where does that leave you?
See below for an in-depth guide to help you understand why your insurance company canceled your policy and what you should do next.
What Is a High-Risk Driver?
Whether you realized it or not, there is a term that insurance providers use to label a person who’s more likely to file an insurance claim: high-risk drivers.
The base definition of a high-risk driver is just that. Someone who is much more likely to file an insurance claim due to an accident.
But, how can they assume that I’m a high-risk driver? Your driving history tells that tale. If your car driving history has multiple accidents on it, then you’re considered a high-risk driver in the eyes of an insurance agency.
As mentioned in the intro, the natural reaction for more big-name insurance companies is to simply cancel your policy. In their eyes, there’s a higher likelihood that they lose money covering you than gain money. So they want no part of you.
A high-risk driver status can last for a while, but the good news is that it won’t last forever. The trick is to weather the storm and correct the mistakes that led to you becoming high-risk in the first place.
Fortunately, there are great auto insurance options for high-risk drivers as well. Just be prepared to pay more for a high-risk insurance policy.
How Did I Become a High-Risk Driver?
As previously mentioned, the term high-risk driver is relatively general. It’s given to anyone that insurance providers deem too risky to insure, regardless of what made them a high-risk driver. This can be things such as:
- Having received a DUI or DWI in the past few years
- Being involved in more than one car accident in the last 2 to 3 years
- Having a lapse in coverage (always a risk)
- Receiving multiple citations or tickets in a certain time period
Different providers have different rules for how they label high-risk drivers. For example, one provider might consider someone being involved in 2 car accidents within the past 3 years to be high-risk, while another considers 2 accidents in the past 5 years to be high-risk. It’s a relative term.
There might also be a combination of factors that led to you becoming a high-risk driver, some of which are out of your control, such as:
- Living in a certain zip code that providers deem high-risk
- Being a teenage driver
- Having a sports car (and the risky reputation of sports car drivers)
- Requiring an SR-22
So, for instance, if you’re a teenage driver that receives 2 or 3 tickets in 1-2 years of driving, a provider might consider you high-risk and drop your coverage.
Where Should I Go for High-Risk Insurance?
While your current auto insurance provider may have canceled your insurance policy, all hope is not lost. There’s still a way for you to get the insurance that you need!
You will need to shop around for high-risk insurance. Be sure to find a trusted provider, such as Staybull Insurance, that prioritizes the driver (you), not their own wallets.
For starters, be prepared for the high-risk insurance to cost more than your average auto insurance coverage. Providers have to charge a higher rate because, given your track record, statistics would show you’re more likely to get into an accident.
Next, try and find an insurance policy with a payment plan. At Staybull Insurance, we will do all we can to find you a policy with a payment plan. In most cases, we’re able to find one!
Please let us know if you need an SR-22 or an FR-44, as those financial responsibility filings can be attached with your auto insurance policy.
Once you have a high-risk insurance policy in place, it’s time to work on removing your title of being a high-risk driver.
How to Remove My High-Risk Label for the Future
After you’ve been labeled a high-risk driver, all you can do is find a good high-risk auto insurance policy, then work towards correcting your driving habits.
You might consider taking a driver’s safety course to correct a few mistakes that you might have in your driving. Get rid of any distractions while you drive, your phone being the biggest one.
You can also work on things such as correcting your credit score, which is also a common way that providers determine high-risk drivers.
Sometimes, all you need is time. Being a high-risk driver isn’t forever, as long as you continually work towards improving it. Sometimes it can be a string of bad luck that brings on the title of being a high-risk driver. In time, you’ll be able to shake off the “high-risk” label.
High-Risk Drivers: Invest in the Right Insurance Provider Today
Now that you have seen an in-depth guide on why your current provider canceled your coverage and how to get insurance for high-risk drivers, be sure to use it wisely.
Read more here for information on the things you should consider when choosing a high-risk auto insurance plan in Florida.
For more inquiries, please be sure to reach out via our contact page to get a quote online.