High risk auto insurance is auto insurance given to people who don’t qualify for any other kind of insurance for various reasons. Insurance companies decline insurance to anyone they see as a high risk, or a potential risk in the future. However they have a high risk policy which such people can sign up for, at a premium price of course.
The policy document in such policies is drawn up with added clauses and provisions. For example, if the car is considered at a high risk of getting damaged, the owner needs to make efforts to decrease the risk factor. These provisions should be carefully studied. Such policies draw a higher premium as the insurance company sees the individual or their vehicle as a risk to their profitability. For a high risk vehicle or owner, there is a higher chance of the company having to spend on repairs and medical bills in the event of an accident. Its not uncommon for high risk policy holders to get implicated in law suits for which the insurance company needs to pay.
Insurance companies consider many groups of vehicles and people high risk. People with bad driving records, known alcohol and drug problems, teenagers, and senior citizens, are considered as high risk. Performance sports cars, and/or highly modified cars also attract a much higher premium. People who have repeat traffic violations such as speeding tickets, DUI’s and other offences have no choice but to go in for a high risk cover. Many insurance companies will help people come out of legal battles involving reckless driving and/or speeding. People residing in neighborhoods with high crime ratios also fall under this category, as their vehicle is more likely to be stolen.
Many people with high risk policies insure a host of safety features to bring down their premium. Another popular method is to find a company which insures high risk drivers under a non standard policy, this brings down your premium, but the process is a little longer. A driver’s ed course can be helpful too, if you do well in the final exam, you can also avail for certain discounts, as well as show your insurance company that you are making an effort to improve your driving skills.
Needless to say, keeping your drivers’ record clean is a good start, let bygones be bygones, you can’t change your past record; however you can do some damage control. You record lasts five years, so if you start today, you can end up with a clean record in five years or less. Once you achieve that, you can get a low risk (normal) policy.
Most people in this situation find it next to impossible to get auto insurance, however its not as complicated as it seems. You just need to find the right company, there are a lot of new private companies that specialize in high risk loans, make use of them. The best place to look for off beat insurance policies is online. You can request multiple quotes in a matter of minutes, and then choose the company that’s best for you. Don’t settle for the cheapest, settle for the best deal. Look for the best coverage you can get for the amount you can afford. Shop around, take as much time as needed, and go in for your policy.
