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What Is High-Risk Insurance

High-risk auto insurance is designed for drivers who auto insurance companies consider likely to file claims and cost them a lot of money. Auto insurance companies typically base this on your driving history, inexperience and other traits. Find out more about this type of policies and get free quotes car insurance from our website.

There are many reasons why you can be considered a high risk-driver:

  • auto-carAt-fault car accidents. If you’ve caused car accidents, your insurance company may expect you’ll cause more. While causing one accident isn’t likely to get you labeled as high-risk, more than one in the last three to five years will surely do that
  • Traffic violations.Multiple speeding tickets or other moving violations will place you in the high-risk pool.
  • DUI/DWI. If you have a DUI or DWI conviction, car insurance companies will increase the premium’s value.
  • Lack of experience. If you’re a teen driver or you’re newly licensed, you haven’t established a driving history. Insurance companies are likely to consider a driver with a lack of driving experience as more likely to make claims.
  • Poor credit score. In all states except for California, Hawaii and Massachusetts, auto insurers can look at your credit to help determine car insurance rates. Statistically, people who have lower credit scores are more likely to file a claim, according to the Insurance Information Institute.
  • Policyholders with bare-bone coverage.If you want to buy only the insurance required to legally drive, you might be considered high-risk.
  • Insurance coverage lapses. If you’ve ever been dropped or you canceled your car insurance without another policy in place, you have a gap in your coverage. This will make future insurers see you as high-risk,

 

Luckily there are many insurance companies willing to provide coverage for high risk drivers, of course, at adjusted costs. The last resort is to contact your local Insurance Department and ask to join the state’s assigned risk pool coverage.

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