Car insurance company decides how much a policy would cost based on risk. Insurance providers are profit-oriented; they are no Santa Clauses who will give things as gifts. Thus they are also taking a lot of care when it comes to their assessments of applicants. They choose who to do business with. This may sound discriminating but that is how it works.
Insurance providers classify their applicants as low risk and high-risk. Of course if you are a low risk policy buyer you have been doing your home work thus you are given a lower premium rate. However if you are a high-risk driver chances are your application will be denied or you will be given high-rate premiums, depending on how risky you are. What makes you a risky driver by the way?
There are actually several factors that can influence your classification as a driver. Some may appear to you as reasonable, some would be fair enough, others may seem to be somewhat unfair and the rest may be totally injustice.
First factor that would define how risky or how safe you are as a driver is your driving history. This is expected. Your insurance company will be handling your troubles on the road thus they will check on your driving behavior before they make business with you. Now if you have records of at-fault accidents, you have got a great potential to be given high premium rates or even denial.
Well if you have no at-fault accident records but were involved in many not-at-fault incidents you are not helping yourself to get a nice reputation to be presented to your car insurance company. Even if you are not at fault that is still an involvement in a car accident and still earns you negative points. Your tickets and non-payment of these several issued tickets can also win you points for your application’s denial or to be a candidate for a sky-high insurance rate.
Another crucial thing insurance company a look at is whether there are gaps in your car insurance coverage records. If there I, it might appear that you were driving without insurance policy then you are on the right track of getting a high premium rates or denial of your application because you qualify as a high-risk driver.
Other factors that you might want to hold on to involve much of your personal profiling. If you are a teenager you are viewed to be more risky than aged people. If you happen to be a male, well statistics would suggest that you are a risky driver. And if you are living in an urban setting you are already on the risky category. So, are you a risky driver?