High Risk Auto Insurance

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What is High Risk Auto Insurance?

Risk assessment is the single most important calculation that an insurance company needs to use to remain profitable. Identifying the riskiest demographics are done by using both historical and quantitative data to profile each individual driver. The insurance industry is moving in a direction that will leverage both historical, quantitative, and live data to better calculate how much risk each driver poses to the underwriter. You pay the insurance company every month a premium to have your financial backing if you are ever in need. Insurance companies process thousands of insurance claims every day and rely on algorithms to determine who is participating in insurance fraud or repeatedly filing claims.

Those who need to obtain high risk auto insurance, are at a higher risk to the insurance company because of certain characteristics. If you need to find high risk auto insurance, it is always better to consult with an independent insurance agent. An independent insurance agent can determine if you are overpaying for high-risk auto insurance. Independent insurance agents can help you lower your monthly premiums because they have the ability to directly quote insurance carriers. VA Car Insurance can help you determine if you are overpaying for your car insurance by connecting you with a local independent insurance agent. Below we go into more detail about who needs high risk auto insurance and the steps you can take to lower your overall risk to the insurance company.

Who needs high-risk auto insurance?

A driver can be labeled as a high-risk driver for multiple different reasons. A bad driving record, age, credit history, and vehicle are just a few of the reasons why a driver might be labeled as high risk. Being labeled as high risk does not necessarily mean you need to obtain high-risk auto insurance.

Bad Driving Record

If you currently are a driver with a bad driving record this might be one of the reasons why you are labeled as a high-risk driver to the insurance company. Having speed tickets, traffic violations, or if you are charged with driving under the influence of either drugs or alcohol will raise the driver’s risk to the insurance company.

Insurance companies have a low-risk tolerance so additional records on your driving record will force the insurance company to either drop you or raise your monthly premiums. Fortunately after a few years depending on the driving violation, your premiums will eventually go down.

Credit History

Your insurance company for has access to your financial records. Repeatedly not paying your bills on time will lower your credit score. Insurance companies take into account what the driver’s credit score is when they label a driver as high risk. Having a high credit score equates to a high risk you pose to the insurance company. Paying not only your insurance premiums but all your bills on time will raise your credit score and lower your monthly insurance premiums.

Steps to lower your high-risk insurance rates

Insurance premiums are harder to lower than they are to raise. Similar to how it’s difficult to raise your grade point average once you hit a certain point. There are two ways to lower your insurance premiums if you have high-risk auto insurance. Both time and change are how you lower your monthly premiums.

Generally, a younger driver has less experience on the road and are labeled as high risk because of the risk to the insurance company that the driver might file for a claim. They would pay more for their monthly premiums but would not necessarily need to obtain high risk auto insurance. Two of the most common reasons why a driver might need to obtain high risk auto insurance is if they have either a bad driving record or credit history.

Speeding tickets usually last for 5 years and driving while intoxicated charges typically last for less than 10 years on your driving record. That means within that time period your insurance company will be keeping tabs on you to make sure there are no additional driving infractions, and once that time has expired your premiums will gradually go down.

Both time and change go hand & hand in lowering your monthly premiums. The way you choose to drive your vehicle every day and playing it safe out on the road will reduce your overall risk to the insurance company and your premiums will go down.

Where can I find high-risk auto insurance?

Getting multiple quotes from different insurance carriers is how you get the cheapest insurance rates. At VA Car Insurance we work exclusively with independent insurance agents in your community. You talk to one insurance agent in your area, who can quote you on the policies you are interested or any current policies you have. They work directly with the insurance carriers to find the policies that fit into your needs and budget.