Auto insurance companies aren’t in the business of taking chances, and if you have a suspect driving background or multiple offenses on your record, you may be labeled “high-risk.” This doesn’t mean you won’t be able to secure auto insurance. You may, however, face much higher premiums since the insurance company is taking a gamble that could cost them money.
3 Factors That Define a High-Risk Driver
1. Multiple Traffic Violations
If you’ve gotten a lot of tickets or caused an accident, the insurance company has to assume it may happen again due to poor driving. A handful of speeding tickets, for example, signals that you’re a reckless driver and will likely get another. The same can also apply to DUIs. If you fall into this category, you’ll want to explore high-risk driver insurance plans.
Teens are unfortunately considered high-risk drivers right off the bat. This is because they simply lack experience. Insurance companies have to assume they’re more likely to get into accidents or have traffic violations. If you’re a parent covering your teen’s insurance, connect with a car insurance agent to discuss options.
3. Poor Credit
A tarnished driving record isn’t the only factor that’s high-risk. A poor credit score can also make you a liability. The auto insurance company has to assume that you’ll have more financial difficulty with monthly payments and other costs. Luckily, you can raise your credit score with relative ease. Focus on paying off credit cards and debts and make sure you’re covering the monthly mortgage, loan, and credit payments.
If you’re in the market for an affordable car insurance plan, Aaron Insurance Agency has several to explore. This Dothan, AL, auto insurance provider covers cars, ATVs, motorcycles, and boats. Receive a free estimate on their website or call (334) 712-0777 to schedule a consultation. Connect on Facebook for news and more insurance tips.