How a High Risk Driver can get cheaper insurance


A driver touted as ‘high risk’ is someone that no auto insurance wants to cover cheaply. These drivers are charged exorbitant amounts for their premiums. Unfortunately, the reality is that many drivers do fall into the category of high risk drivers. Some unfortunate people, through no fault of their own, still land up in this category. People who land up in this category have either got a bad driving record, or had their license revoked, or have a bad credit score, or a combination of two or more of these factors. Even the area in which a person lives can determine whether or not he falls into the high risk category.

You’re a High Risk Driver…now what?

But just being labeled as a High Risk driver doesn’t mean it’s the end of the road and that you are to be doomed with a sky high premium rate all your life. There is something known as the Automobile residual market available in most states that allows unfortunate customers stuck with the high risk tag to attain auto insurance policies at significantly lower rates. If a certain high risk driver does not manage to get an affordable insurance policy from any insurance company is his state, then he can approach the Automobile Residual Market of that state for help. Since an automobile insurance is mandatory as per the law, one must apply for one via the residual market pool if he doesn’t get a policy via the open market.

Getting in touch with the Residual Market Pool

Many however, do not know how to get in touch with the residual market pool. This can be done by contacting the chamber of commerce in your area. In the open market too, there exist a lot of companies which offer discounted premiums to high risk drivers. It may be a little hard to search for these companies, but don’t settle for any company until you’ve exhausted all sources of information. The internet can also be used to its maximum advantage in this aspect. One can search for multiple quotes online from insurers.

How to prevent falling into the High risk category

Many factors that put a driver into the high risk category can be prevented- like a bad credit score, or Driving Under Influence, or getting an insecure car; but these aren’t always controllable. Something you can control however is when you buy your new insurance. The very act of canceling out the old policy before a new policy is bought is more than enough to send a driver to the High risk category. Always remember to pick up new car insurance for the car while the old policy is still valid. Other factors like installing an anti theft device, or an alarm system, or even a GPS can somewhat help in reducing the price of the insurance premium.

The best thing for a high risk driver to do is to compare a host of quotes from a number of auto insurance companies. Usually it is suggested that one must take 5 quotes from different companies, but in the case of a high risk driver, at least 10 to 15 quotes from different companies must be taken. The quotes may then be compared and the company offering the best deal with the best customer service may be chosen.