High Risk Auto Insurance

High Risk Auto Insurance
by James Robinson

What constitutes a high risk driver?

Demographics
The cold hard facts are that auto insurance companies consider women less of a risk than men, urban dwellers less of a risk than rural folks and adults less of a risk than teen drivers. More specifically when it comes to men, being under the age of 25, definitely means high risk auto insurance.

Credit History
You wouldn't necessarily think that having poor credit would be cause for high risk auto insurance, but sadly it is. Studies have shown that drivers with poor credit are more likely to file a lot of claims. Insurance companies use that data as backup when it comes to charging higher premiums. If you have poor credit, then this might just be good motivation to clean it up a bit.

Driving Record
You knew this one was coming, but did you know that speeding tickets and other road violations could raise your rates as well? It's not just about accidents. Basically, insurance companies require continuous violators to pay for high risk auto insurance. Why? Because statistics show that violators are more likely to be involved in a car accident. As a general rule, watch your speed and adhere to driving laws.

Lack of Coverage
Driving without auto insurance is taboo. If auto insurance companies see that you've been on the road without coverage or that your previous provider canceled your coverage, then you can expect to pay for high risk auto insurance now. Always get your car insured. Doing so will let insurance providers know that you're a responsible driver.

So, how can you improve your status as a high risk driver? Keep in mind that changing your status will take time. Here are some suggestions to avoid high risk auto insurance in the future.

Change Vehicles
If you're looking to save some money, you may want to trade in a newer car for an older one. Mature vehicles cost less to cover. In many cases, insurance providers only require you to have liability insurance.

Shop Around
The Internet is a wonderful tool. Take the time to scout out high risk auto insurance companies in your area. Just doing some research may help you find a company with rates more bearable for your wallet.

Alter Your Behavior
If you have a history of poor credit, accidents and traffic violations, it's time to clean it up. Sure, it will take time, but it is very possible to do. Most insurance companies drop insurance premiums if a driver has had a stellar driving record for at least three to five years. Think about taking a safety driver course. Sometimes insurance companies need to see that you're serious about making a change.

For those with poor credit, make sure you pay your bills on time. Consider debt consolidation to make it easier on yourself. Be frugal and stay within your budget. If insurance companies see you making an effort, they might waive your high risk auto insurance.