When you become a licensed driver, it is legally required to obtain some degree of insurance coverage. However, the rates you can expect to pay will largely depend on your risk rating. If you want to pay the lowest auto insurance premiums, make it a goal to become a preferred risk driver.

What Does It Mean to Be a Preferred Risk Driver?

Finding the best auto insurance rates gets a lot easier when you become a preferred risk driver. You’ve demonstrated that you are a safe and responsible driver, and insurance companies will reward this conduct with discounts and lowered rates.

In many instances, agencies will also seek you out to be one of their customers since you pose such a low threat to their company. If you choose to purchase additional insurance plans from the same agency in the future, your status can also be used to lower the rates of these policies.

How Do You Become a Preferred Risk Driver?

Your driving record is the key factor in determining your auto insurance risk. Preferred drivers typically must have a clean record with only one to three moving violations—any ticket received for breaking the rules of the road—in the last three to seven years. 

Aside from your record, most agencies will also consider your age. It’s normal for them to disregard anyone under the age of 25 for this status as young drivers have less road experience and are statistically higher threats. However, anyone who hasn’t been licensed for at least five years, no matter their age, will also have a difficult time reaching preferred status. 

While it’s not always used, many insurance companies will look at your credit score. If they are having trouble determining your risk rating, their decision could come down to this number and your credit history. 

No matter what your circumstances are, you can find the best auto insurance rates for your situation at Lafever Insurance Agency in Cookeville, TN. For over 40 years, these independent insurance agents have provided affordable premiums for drivers in the Upper Cumberland area. Call them today at (931) 526-3377 for a free estimate, and visit their website to learn more about the services they provide.