When you say the word high risk, it typically involves something like a threat or an incoming danger. This is exactly how insurance companies view some drivers. There are several factors that may contribute to this label which we’ll cover in detail below. It’s always a good idea to look into whether your consider high risk or not so you can set proper expectations when seeking out insurance rate quotes.
So what makes a person a high risk driver in? Well, check out these factors and assess yourself whether you are one of them:
Low Credit Score
If you want an impartial evaluation of your risk factor, try looking at your credit score. You don’t have to have the highest score – that’s actually extremely difficult and unrealistic to achieve. All you have to do is take note that your in a stable financial situation and that everything in the report looks good. If you have some issues with your credit report or otherwise have an extremely low score it could play a role in labeling you as a “high risk” driver.
It doesn’t matter if you only have a single violation. The truth is, you have one. Of course, insurance companies will take note of any infractions you acquired over the years. Unfortunately, even simple traffic violation can put you in a position to pay higher insurance premiums. Traffic violations reflect how you perform on the roads. The more violations you have, the higher the risk you are when driving.
Young drivers, due to their inexperience driving, causes them to typically fall into the category of high risk driver. The amount of experience you have driving makes can lower the risk the insurance agency takes in offering you coverage. Typically, the more experience you have the less of a risk you are to get into an accident. The less accidents you are in the more money the insurance is able to keep in their pocket. Therefor it’s no surprise that teenage drivers have some of the highest insurance rates. Since studies show that most teenage drivers are more prone to accidents or violations it’s a factor that needs to be kept in consideration when determining auto insurance quotes.
DWI or DUI
This is a no brainer. When you drive under the influence of something, you are an immediate risk! Well. It’s no secret that the insurance companies want to keep you off the streets given the risk you propose driving under the influence. If found guilty of a DWI or DUI you can automatically assume you’ll be labeled as a high risk driver and pay the increased premiums associated with this label.
No Prior Insurance Coverage
Driving without insurance coverage is against the law in all states. Unfortunately, there are a number of drivers who take this for granted. They still manage to drive and don’t care much about the consequences. This scenario makes the person a high risk driver. It’s to your benefit to show proof of prior insurance coverage when shopping for a new rate. If you’ve made some mistakes in the past and have paid the price then with some time you’ll eventually drop the “high risk” label.
These are just a few of the factors that will make a person a high risk driver. Bear in mind that being a driver requires responsibility. The responsibility doesn’t stop at getting a driver’s license. Actually, being a responsible driver never ends.
Remember that just because you’ve been labeled a high risk driver today doesn’t make that true forever. With more driving experience and additional years of wisdom you can easily shake the high risk label and start saving even more on your auto insurance.