One of the most important factors affecting your auto insurance premiums would be the kind of Risk you are seen as by an insurance company. Most insurance companies offer several levels of premiums based on the risk you and the drivers in your household are, and more factors decide this than you may expect. These are the major ones:
- Driving record. Everyone knows that an at-fault accident will increase insurance rates, but tickets and not-at-fault accidents can too. Insurance companies believe that for every speeding ticket you get, your chances of being involved in a traffic accident rise by 100%. Insurance companies also believe that being involved in multiple car accidents, suggests there is a possible pattern of reckless driving, even if you’re “not at fault”.
- Personal profile. Insurance companies will always consider men a greater risk than women. Teens are always a higher risk than adults drivers. People who live in the city come in contact with more cars then people who live in rural areas.
- Continuous coverage. If you have not carried auto insurance coverage continuously over the past few years it will affect your ability to get an auto policy. This is because insurance companies assume you’ve either been driving without coverage, or had your policy canceled by the previous insurer.
- Your credit history. It may not seem fair, but your credit is a factor that increasingly influences other areas of your life, including insurance. Statistics show that drivers with poor credit file more auto insurance claims, and so companies use this info to classify high risk drivers. To read more about how your insurance credit score may affect your insurance you may want to read the Credit Blogs at this Link.
If you have become a high risk driver it may take a little time to move into lower risk categories with an auto insurance company. It is important to establish a clean driving record. Most insurance companies rate a driver with no tickets or accidents for three years as a good risk. Keep your auto insurance policy premiums paid and clear up any negative credit history you may have.
There are a few things that can be done to cut high risk auto insurance costs. Driving an older car and canceling your collision and comprehensive insurance coverage can save a lot of money. Shopping for auto insurance online is a great way to access high risk auto insurance companies in your area. You may even be able to comparison shop between several offers. Be sure to follow the tips for an accurate Auto Insurance Quote.
Blogs In This Series: Auto Insurance Policies 101:
- Liability Coverage
- Uninsured & Underinsured Motorist
- Medical Insurance & Personal Injury Protection
- Optional Coverage-Collision
- Optional Coverage-Comprehensive
- Optional Coverage-GAP
- Additional Auto Insurance Coverage
Glossary of Insurance Terms:
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