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What can cause me to have high risk auto insurance?


A poor driving record can cause you to have high risk auto insurance. It has a higher insurance premium than a regular one because reckless drivers are more likely to be involved in an accident. That means auto insurance companies will be shedding more money just to cover the cost than with a careful driver. They are called “high-risk” because they are a risk to the company’s assets. No company would like to shed more than what is coming in so if it really is unavoidable, and it is necessary to have car insurance, auto insurance companies will give a higher premium for these drivers to pay in exchange for that protection.

If you have a poor driving record, you may find it difficult to get auto insurances. Although it is hard, there will always be one that is willing to grant your request. You have to remember though that the evaluation of your car insurance premium is not solely based on your driving record but other factors as well.

A person’s age can also be a factor. People who are 21 to 25 years old are considered as high-risk car insurance policyholders. This is based on studies that were conducted and not based on the person’s being or characteristic. Another factor that can cause you to have high risk auto insurance is when you have a high-end, expensive automobile. When you scratch a luxurious car, it can cost you thousands just to remove it. This is the main reason why auto insurance companies consider it as a high risk auto insurance policy thus giving owners a higher premium. Your gender will also determine what your premium will be since there have been studies that one gender is more reckless than the other. Women are considered as low risk drivers because even though they are involved with several minor accidents, they are rarely aggressive on the road thus having little participation on major car crashes.

These are some things that can cause you to have high risk auto insurance policies. So, if your qualities are under a high-risk driver, it is unavoidable for you to be granted high risk auto insurance. If you do not have the funds to pay a high premium, be careful on your driving and keep your record clean. That can help you get a lesser premium. For factors that are set such as age and gender, the other two factors are more important so you don’t have to worry.