High Risk Auto Insurance: Do You Need One?


Auto insurance is an important security contract that covers both drivers and car owners alike. Driving without insurance coverage is punishable by law in most states in the United States, and registration and renewal would not be possible without it. This is the reason why millions of people are looking for auto insurance year after year.

Road accidents continue to rise each year. Varying scenarios have forced insurance companies to come up with new and interesting types of coverage to protect the motorists.

One of them is high-risk auto insurance; this aims to protect drivers whose driving records are not that impressive. Such drivers are considered to be in close proximity to troubles and road accidents.  This type of policy also covers other circumstances such as theft. Expensive vehicles are often targets of car thieves, and their costly price tags make them high-risk. Additionally, vehicles with expensive accessories or enhancements usually end up on the top of the list of car thieves as well.

However, not all people end up with a high-risk label. Auto insurance companies use certain criteria and variables to determine the risk level of an individual or the car. The policy is rewarded only after this part is cleared.

One of the most important criteria insurers consider is the age of the driver. The younger the driver, the higher the premium becomes. Teenage drivers are more prone to car accidents than their older counterparts. Statistically, teen drivers get easily distracted, do stupid stunts behind the wheel, and driving experience is fairly limited, which contributes to their lack of sense and reasoning to deal with the ever-changing road conditions.

The driver’s gender is also an important factor. Accordingly, men are cranky and impulsive behind the wheel while women are the complete opposite. Admittedly, there are a few cranky women drivers as well, but men in general, receive higher premiums due to this road behavior.

Another factor that is taken into account during computation is the driving history. Drivers with several road mishaps and elevated risk levels take high-risk insurance coverage as a recommendation. Nearly all drivers experience accident at least once. However, it could also mean other things aside from the usual human error.

Filing insurance claims on top of the other signifies the driving style and attitude of the driver. Being temperamental behind the wheel is never good news from the insurer’s point of view.

Insuring someone is not an impossible task, and finding an affordable insurance is relatively easy. However, if someone spells disaster on the road, the chances of getting one is extremely slim to impossible.

We can’t do anything to change how insurers view the age and sex factors to dictate the price of the policy. But keep in mind that even if you are a male student driver who is supposed to be a high-risk driver, there are things that can be done to reduce the rates. For instance, performing well in school and installing safety features to your car may entitle you to receive discounts. It’s also important to keep your driving history clean from tickets and fines to reduce your rates in the years to come.