Whether you’ve had a serious accident or DUI, you may need high-risk car insurance. Luckily, Affordable Insurance caters to all types of drivers across Aurora and Denver. We understand that every driver is unique, and the best insurance plan for one driver may not suit the needs of another. Whether an experienced driver with a clean record or fall into the high-risk category, our expert team can help you get the best deal.
Most states require drivers to hold a minimum level of auto insurance. However, some drivers struggle to even obtain basic coverage. Drivers categorized as being “high-risk” face more challenges in finding insurance at an affordable price. High-risk drivers are seen as being more likely to file a claim. This means that the insurance company will have a much higher probability of losing money. To counteract this risk, insurance companies will charge these drivers a much higher premium for basic insurance, and some completely refuse to insure high-risk drivers.
So, how do you know if you need high-risk car insurance? If you can answer yes to one or more of the following questions, you may be considered a high-risk driver.
- Are You a Teenage Driver?
Newly qualified drivers are seen as high-risk due to their lack of experience. Young drivers under the age of 18 are usually charged at extremely high rates as they are the most likely to take unnecessary risks and end up in accidents. If you are a teenage driver, getting added to your parents’ insurance policy will be much cheaper than taking out an independent, high-risk car insurance policy. Premiums may even drop each year 20 as more experience is gained.
- Are You a Driver Over the Age of 70?
Older drivers are may also need high-risk car insurance according to various carriers. As we age, our reflexes slow down, our eyesight and hearing diminish, and we are more prone to mobility issues. All of these effects of aging can compromise our ability to drive safely. For this reason, older drivers may have to renew their driver’s license more frequently, and they may see their premium increase in proportion to the number of candles on their birthday cake.
- Have You Been in a Serious Car Accident?
After being involved in a serious accident, even if you were not found to be at fault, you can expect to be penalized when it comes to the price of your car insurance. A serious accident typically results in significant injury or property damage, but the exact definition varies between states. In addition to serious accidents, there are a few serious violations that will instantly put you in the high-risk insurance category. These include driving without a license, illegal street racing and any traffic violation that results in a fatality.
- Have You Had a Lapse in Car Insurance?
If you have had a lapse in insurance at some point in your driving career, you will find it more difficult to get a good price on your future auto insurance policies. Driving without car insurance is a huge financial gamble that leaves you open to crippling debt. It is also illegal and punishable by fines and legal penalties. Car insurance companies do not look fondly upon drivers who have delayed renewing their insurance policies. They will certainly place these drivers in the high-risk category and charge them accordingly.
- Have You Ever Received a DUI?
One of the most common reasons why you might need high-risk car insurance is a DUI, one of the biggest red flags a driver can have on their record. Drivers who have received a DUI are statistically more likely to repeat the offense or partake in other high-risk behaviors, causing insurance companies to see them a huge liability. DUI recipients are required to file for SR-22 insurance and pay considerably more for their insurance plans as long as the DUI is on their record (usually at least three years). Some companies may fully refuse to insure SR-22 drivers.
- Do You Drive a High-Risk Vehicle?
Driving a high-risk vehicle is reason enough for insurance companies to view you as a liability, even if you have a perfect record. Sports cars and supercars are associated with high-risk driving behavior and more expensive accidents. Exotic cars and collectible or vintage cars do not usually have readily available replacement parts. If these cars are damaged, it will cost a lot to import the replacement parts and find a specialized mechanic to repair them. For this reason, the cost of insurance on this type of vehicle will be much higher than for standard cars.
- Is Your Driving Record Littered with Offenses?
Your driving record is the easiest way for an insurance company to analyze your future risk. If you have a history of frequent traffic violations, you may need high-risk car insurance. Going a little too fast on the freeway may not seem too serious, but if your speeding tickets, minor accidents and traffic violations begin to add up, it does not paint a good picture of you as a driver. Insurance companies can get access to your record going back at least five years, so it pays off to be a careful driver with a clean record.
These are the most common reasons why insurance companies label a driver high-risk. If you have been categorized as a high-risk driver, it’s not the end of the world. You’ll have to pay more for your insurance premium the next time you renew your policy, but if you maintain a good driving record, you can eventually qualify for standard insurance.
If you are still unsure of whether you need high-risk car insurance or not, our team of experts can help you. At Affordable Insurance in Aurora, Colorado, we specialize in getting drivers the best deal on their car insurance, even if they are categorized as high-risk drivers. For the past 20 years, our friendly team has been helping drivers save money by designing personalized insurance packages. For a free, no-obligation quote, simply visit our website today.