About High-Risk Car Insurance

What You Should Know About High-Risk Car Insurance

Some insurance companies may look at certain drivers in California as high risk. This means that these drivers present a much greater liability to insurers because of their driving record, the type of vehicle they drive, and even their less than stellar credit history.

These people will also find that their insurance rates will be higher because they are more expensive to insure.

Today we will talk about what you should know about high-risk car insurance.

What Is High-Risk Car Insurance?

High risk isn’t a specific type of insurance policy you get to suit high-risk individuals’ needs. It is rather a designation given to specific drivers by insurance companies matching the criteria mentioned above. High risk drivers are rarely seen as prime candidates and are often face much higher premiums as a result, along with fewer auto insurance options.

Factors Leading to a High-Risk Status

Driving and non-driving factors can both lead to an individual being considered high risk. Driving factors can include at-fault accidents, reckless driving, traffic violations, and driving under the influence. Whenever you accrue points on your license, you are entering the category of high risk in the eyes of auto insurance companies.

1. At-Fault Accidents: If an accident was the fault of your own, then you may see higher insurance premiums following the accident. Having more than one at-fault accident per year shows the insurance company that there may be a bad driving pattern.
2. Reckless Driving: This could be speeding, dangerous maneuvering, or ignoring traffic signs and lights. It puts the driver and others on the road in harm’s way.
3. Traffic Violations: Tickets are always a red flag for insurance companies and could directly affect premiums.
4. Driving Under the Influence: This has one of the most significant impacts on a driver’s auto insurance. They are almost always seen as an immediate and definite high risk.

As previously mentioned, some non-driving factors can include a driver’s age and experience, the make and model of the vehicle they are driving, a gap in insurance coverage, and their credit history.

1. Age and Experience: Younger drivers are more liable for getting into an accident because they are less experienced. With this inexperience, they may see more tickets and accidents.
2. Vehicle type: If you drive a sporty car, then insurance companies feel as if you are more likely to be involved in an accident or moving violations. For this reason, certain makes and models are put into the high risk category.
3. The gap in Coverage: If you allowed your auto insurance to lapse at any time, then you are seen to be less financially responsible, and this can place a driver in a high risk category and result in higher premiums.
4. Credit History: Credit scores are often used as indicators of what kind of driver someone may be. For example, those with poor credit scores are often seen as high risk.

Contact us

If you need more information on obtaining car insurance as a high-risk driver, don’t hesitate to contact the experts at Panorama today. Call: 818-781-6630