If you have a designation as a high-risk driver, insurance companies may be apprehensive about covering you. These companies must assess certain factors about you and your driving record to determine how risky you are behind the wheel before offering a policy. Below are five reasons to be flagged as high-risk.
What Makes a High-Risk Driver?
1. Violations & Accidents
Traffic violations and at-fault accidents are a few of the biggest reasons for an insurance carrier to consider you a high-risk driver. One ticket will raise your rates, and having more than six points on your license will make you ineligible for preferred company plans. At-fault accidents with paid-out claims will automatically put you on the high-risk list even if there are other factors in the incident.
Young drivers immediately fall under the high-risk category because their inexperience and age often lead to accidents and traffic violations. A new driver usually falls into this category, and every driver will have to endure this time frame until they are older and have more experience.
3. Credit History
Insurance companies will look at credit scores to look for a higher chance of claims. The worse your score, the more high-risk they consider you. Auto carriers also look at your policy history and may require proof of at least six months of continuous coverage. If you are a licensed driver, but there is no history of insurance, you are a risk because they may assume you drove illegally without an active policy.
4. DUI Record
Having a DUI or DWI on your record guarantees higher insurance rates. You may even lose your policy completely once the police issue the ticket. Driving under the influence of drugs or alcohol makes you a risk on the road for yourself and everyone around you.
5. SR-22 Needs
SR-22 documents are filed by insurance companies with the state to ensure that the policyholder has met the minimum financial responsibilities for coverage. If you have a record of extensive and severe violations, your insurance company must guarantee that you have coverage.
If you are a high-risk driver and you need a policy, 1st Choice Insurance in Fairfield, OH, can help. Family-owned and -operated, the company works with young drivers as well as individuals with suspensions and credit issues to find the right policy. They also offer low-cost SR-22 bonds, which they submit to the state as proof of payment. In addition to auto insurance, their services extend to motorcycle and RV. For a quote, call (513) 860-0666 or visit them online for more on their high-risk insurance options.