High-Risk Auto Insurance: What Is It and Who Needs It?

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Car InsurancePhiladelphia, PA - Being a high-risk driver can have a devastating impact on your finances. Besides some insurers refusing to cover you, those who accept will often provide exceedingly high rates. In most cases, those with a poor driving record are often classified as high-risk drivers. However, the reason one can be classified as a high-risk driver may vary from one insurer to another.

So, What is High-Risk Auto Insurance?

High-risk vehicle insurance, also known as "nonstandard auto insurance," is the kind of insurance you may require if an insurance company believes you have a higher chance of getting into an accident and submitting a claim than the ordinary person. Usually, high-risk vehicle insurance comes with limited choices and high premiums. 

Causes of High-Risk Auto Insurance

One of the least known car insurance facts is that factors you can't change or control, like age and not having had a vehicle, can cause high-risk auto insurance. Even if you had a perfect record and were Citizen of the Month, those things would still matter.

In other instances, factors like violating traffic regulations, poor credit, and DUI/DWI convictions can cause high-risk insurance. Therefore, be sure to ask what an insurance provider classifies as a high-risk driver when shopping for insurance coverage. 

You might also want to use an online platform like CheapInsurance.com to identify high-risk insurance providers with the most affordable rates. 

Who Needs A High-Risk Insurance Policy?

Teenage Drivers

Insurance companies consider teenage drivers as a greater risk than experienced adult drivers. But there are several things young drivers can do to earn reduced premiums—like achieve high marks in school, not get any traffic penalties, and stay out of accidents. 

If you retain a clean driving record, your rates will steadily decrease until you’re 25 years old. However, parents of teen drivers can save money by adding them to their insurance. 

Violators of the Moving Traffic Regulations

In 2018, overspeeding was responsible for 26 percent of all traffic fatalities. Therefore, it should be no surprise that getting a speeding ticket can raise your insurance premiums. An insurance company may classify you as high-risk if you accumulate a significant number of traffic citations.

Drivers 65 Years of Age And Up

In the same way that you can be considered too young to be regarded as low risk, you can also be considered too old to be safe. Insurance rates decrease as you get older, but once you reach the age of 65, they begin to rise again. In 2018, there were 6,907 traffic deaths caused by motorists above 65. Because of this, drivers in this age group are considered high-risk.

DUI/WI Convicted Drivers

Driving under the influence of alcohol is a bad and risky idea. There's just no other way to put this. You have the potential to cause harm to another person, your vehicle, or to end your own life. Therefore, driving while drunk can increase your car insurance premiums. 

Drivers with Lapsed Coverage

It is possible that you used to own a vehicle but decided not to use it after relocating to a larger town going to college. Leaving your auto insurance policy lapsed for good reasons is understandable. However, if you haven't had coverage in a while and suddenly find yourself in need of it, you may discover your rates are greater than you recall. Your insurance prices will ultimately drop if you avoid accidents and avoid going to traffic court. 

Other individuals that need high-risk auto insurance may include first-time drivers and drivers with no credit or poor credit.

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