If you own a car, you know that auto insurance is a necessity. But what do you do if you have a high-risk driving record? You may be wondering if it’s even possible to get insured. The good news is that there are options available for high-risk drivers, but it’s important to know what to look for when shopping for this type of insurance. For that, let’s discuss some of the things you should keep in mind when looking for high-risk auto insurance.
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Are You a High-risk Driver?
The first thing you need to do is determine if you are, in fact, a high-risk driver. There are several factors that insurers take into account when determining risk levels. If you have committed these violations, you may be a high-risk driver:
- DUI or DWI
- Excessive speeding
- Road rage
- Reckless driving
- Driving without insurance
- Hit and run
- Being at fault in an accident
- Moving violations
Other factors can cause an insurance provider to determine you are a high-risk driver. This includes being a first-time or teen driver, 65 years old and above, and having dismal credit.
What Is a High-risk Auto Insurance Policy?
A high-risk auto insurance policy is specifically designed for drivers who have been labeled as high-risk. This type of policy typically offers higher premiums and may come with some restrictions. For example, you may be required to install a device in your car to track your driving behavior. While there are companies that won’t cover high-risk drivers, some companies will do so. Progressive is one of the first companies to offer high-risk auto insurance. If you want to learn more about their policy and how they conduct their business, read as many Progressive car insurance reviews as possible.
What to Look for in a High-risk Auto Insurance Policy
Now that you know what a high-risk auto insurance policy is, it’s time to learn what to look for when shopping for this type of coverage. Here are some things you should keep in mind:
Coverage Limits
When looking for high-risk auto insurance, it’s important to find a policy that offers adequate coverage. You don’t want to be left with huge out-of-pocket costs if you’re involved in an accident.
Premiums
As mentioned earlier, high-risk policies typically come with higher premiums. Make sure you are comfortable with the cost of the policy before you sign up.
Exclusions
There are likely to be certain things not covered by a high-risk auto insurance policy. This could include damage to your car caused by a natural disaster or accidents that occur while you are driving out of state.
Claims Process
When you make a claim, you want the process to be as smooth as possible. Make sure you understand how the claims process works before you purchase a policy. As mentioned earlier, it’s crucial to learn from other people’s experiences before signing up for a policy. You can do this by reading high-risk auto insurance reviews.
Policy Length
Some high-risk policies are only for a short period, while others may last for several years. Determine how long you need coverage before you start shopping around.
Cancellation Policy
If you decide to cancel your high-risk auto insurance policy, make sure you understand the company’s cancellation policy. Some companies charge a fee for early cancellation, while others may not allow you to cancel at all.
You Don’t Have to Be a High-risk Driver Forever
If you have been labeled a high-risk driver, it doesn’t mean you are doomed to pay high premiums for the rest of your life. There are ways to lower your risk level and eventually qualify for lower rates. One way is to take a safety course. Many insurers offer discounts to drivers who have completed a defensive driving course. You can also lower your risk level by maintaining a clean driving record for some time. If you have been accident-free for a few years, you may qualify for a standard policy.
It’s also important to pay your bills on time. If you have poor credit, your credit score can have a big impact on your insurance rates. Not paying your electricity or credit card bill can adversely influence how much you’ll pay for car insurance. If you work on improving your credit, you may get lower rates in the future.
The smartest move you can make, though, is to become a smarter, more careful driver. High-risk drivers are more likely to get into accidents, so take measures to avoid dangerous situations on the road. Don’t text while driving, be aware of the speed limit, and always wear your seat belt. If you follow traffic rules, you’re less likely to get into an accident and eventually qualify for a standard policy.
The Bottom Line
As a high-risk driver, you must stay informed about your options when it comes to car insurance. By doing your research, you can find a policy that will work for you. Just remember, it’s possible to lower your risk level over time by driving safely and maintaining a clean driving record. With a little effort, you may eventually be able to qualify for a standard policy.