Like all insurance, the premium you pay for automobile insurance coverage is based on the level of risk you present and the likelihood that you will file a claim in the future. Statistically speaking, high-risk drivers tend to get in more accidents and cost the insurance companies more money to settle those claims. Therefore, the premiums charged to high-risk drivers are often quite a bit higher than those charged to so called "low-risk" drivers.
If you happen to be under age 25, have been in too many accidents, frequently file claims, have a poor driving record, lots of speeding tickets, a suspended license, DUI or other negative marks on your record, you probably will fall into the high-risk group. Insurance may cost you more than most other drivers and if you are an extremely high-risk driver, you may even be turned down by some insurance companies. What can you do to get insurance and get it at a price that will not put you deep in debt? Following are a few suggestions for the high-risk driver.
All auto insurance companies are different. Some of them have a more lenient policy toward drivers that present a greater insurance risk. In order to get business, they are willing to insure high-risk drivers where other insurance companies would refuse. Insurance is a very competitive business and you may find one or two companies that charges a reasonable premium. You must realize that until you can improve your record and move out of the high-risk category, you probably are going to have to endure higher premiums. Consider it the cost of learning. High premiums do not have to last forever.
Taking a Safe Driver or Defensive Driving Course
If you can prove to the insurance company that you are actually a safe driver despite your youth or a couple of accidents, they might reconsider and put you in another category of risk and offer you a better rate on your auto insurance.
Stay Away from Fancy, Super-Cool and Extremely Expensive Vehicles
One of the components that auto insurance companies consider when assigning a premium is the type of car you drive. If you drive a $75,000 BMW or another car that ranks high on the" most often stolen" list, the premium will be high. Instead, buy an ordinary car, maybe 4 or 5 years old that is not a target for theft .
Even if you are a high-risk driver, you can get a break on your premium if your car has plenty of safety and theft deterrent equipment. Cars with airbags, anti-lock brakes, alarms and so forth are often afforded a discount by the insurance company.
Clean-Up Your Driving Record
One of the things anyone can do is to drive more safely. Avoid speeding and drive defensively. If you have unpaid tickets, take care of them right away. The fastest you can remove the blemishes from your record, the better the chance of getting affordable auto insurance.