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High Risk Auto Insurance: What You Need To Know To Avoid It


If you think auto insurance alone is a pain in the head, what do you think of high risk auto insurance? This may sound more painful, especially on finances. Being a high risk driver means a more expensive insurance policy and higher deductibles; and being labeled as one is upon the company’s discretion. Now, if you try applying for a car insurance one day and was charged as being a high risk driver, you may wonder upon what grounds they consider you for such a policy. Here are a few criteria companies may take into consideration and some tips for you to avoid paying for a high risk auto insurance.

First, insurance companies consider age and gender. As we all know, teenagers are more reckless than adult drivers; thus, they demand higher premiums for applicants within this age group. Also, women are safer drivers compared to males, so the more cautious you are on the road, the more they will offer lower rates. Now, if you cannot do away with the fact that you are a male, what you can do is to impress them with a clean driving record in terms of traffic violations and vehicular accidents.

Second, credit history may affect rates. If you are asking why, it is possible to understand it with this simple statement: the more spotless your credit record is, the more promptly you can pay bills. They would usually take this into account, because they will have trouble reconciling their billing records if clients do not pay on time. That is why they would require a higher premium for those whose credit record is questionable. Hence, make sure you have settled your account when you apply for car insurance to avoid a higher rate.

Third, and most obvious consideration, is your driving record. If yours says “danger” all over it, the company would definitely consider you a high risk driver. There is nothing much you can do about it if you already have a bad record, but if you are considering to buy a car or get your license, make sure to keep your driving record clean so that you would not have trouble looking for cheap auto insurance in the future. Nevertheless, you can scout for auto insurance companies and compare rates, then get the best one for your car and budget.

Car insurance may be very expensive and looking for good offers may require a lot of time and effort, but what you might be paying for your car if you do not get one may leave you empty-handed in the future. Thus, consider it a good investment for your money and energy.