What You Should You Know About Insuring High Risk Drivers

Friday, February 8th, 2019 - Uncategorized

One of the main factors that auto insurance companies take into consideration when determining the price of an insurance policy premium is the level of risk the driver representations. Understanding risk is an essential part of acquiring affordable insurance, especially the criteria that makes an auto insurance policy high risk.

In the insurance industry, the term 'risk' means the likelihood of harm occurring. If the likelihood of harm is high, then the risk of insuring a driver is high. High risk is a consideration an insurance provider will factor when determining a policy premium. There are a variety of factors that are considered when determining a driver's risk. For instance, if a driver has a history of traffic accidents such as speeding tickets and car accidents, they will consider the driver a high risk and their premium will be higher to reflect that risk. The insurance provider determinates that there is an increased probability that the driver will file a claim or a claim will be filed against them. Companies often evaluate their risks when insuring high risk drivers so that the premiums are high enough to help offset a claim. When a company considers a policy, they will obtain the driving record of the potential policy holder. Reckless driving practices, drunken driving penalties, parking fines, speeding tickets, and accidents, are all considered when assessing a person's policy.

The risk of theft is another factor that is considered when assessing an insurance policy. For instance, cars lacking anti-theft devices such as alarm systems and tracking devices, and are parked on the side of the street overnight, are considered a high risk of theft. As well, expensive cars, sports cars, and luxury cars, are all considered a high risk for theft. Having security devices installed in your vehicle will lower your promotions.

Age and gender are two other criteria assessed when determining policy rates. For instance, research shows that teenage male drivers are higher risk drivers therefore they are a higher risk to insure. Young males under the age of 20 have a higher rate of car accidents and getting a speeding ticket. This is often due to lack of experience and maturity. The CDC reported that in 2005, "more than 4,500 teen deaths were caused by injuries from an automobile accident, and 400,000 experienced nonfatal injuries.

The best way to avoid being classified as a high-risk driver is to take a number of measures to lower your risk. This can include: taking a defensive driver training program recommended by your insurer, paying a higher deductible, purchasing an inexpensive car, maintaining a clean driving record, obeying all traffic rules, and reducing your mileage. One important thing you can do is compare insurance quotes from several different insurance providers. There are insurance quote services available at most online insurance information websites.

There is always risk involved when you drive; However, the key to lowering your risk is to know what makes a driver high risk and what you can do to make sure you are not assessed as a high risk driver. By doing so, it will help you obtain the cheapest car insurance possible.

Source : http://ezinearticles.com/?What-You-Should-You-Know-About-Insuring-High-Risk-Drivers&id=3737008

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