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What is a high risk car insurance company?

The car insurance company isn’t actually the high risk; it’s the clients that are presenting a high risk to the insurance company, but there are car insurance companies who are willing to write these people a high risk auto insurance policy.

Car insurance companies are experiencing the same difficulties as in other industries, and they need to lure customers away from the competition as much as they can. Some companies are only willing to insure older and safer drivers, so that leaves the door open for attracting those who are younger and less safe into their client base.

Comparison Shop to Find High Risk Car Insurance Companies

Finding these car insurance companies is a simple matter of shopping around and comparing various high risk car insurance quotes. It’s so easy because a comparison website chooses several insurance companies for their customers and sends them the quotes these companies’ offer for free.

In the case of high risk drivers, the comparison website will solicit quotes for them only from car insurance companies that are willing to sell them a policy. Because of this, their time isn’t wasted seeking quotes from car insurance companies that will never cover them because they have a DUI on their driving records.

Who are the high risk drivers?

Typical high risk drivers are the inexperienced (teenagers are notorious high risk drivers), people who have been arrested for DUI’s and DWI’s, people who have several points on their driving records, people who have filed several claims with a prior car insurance company, people with bad credit, and people who have let their car insurance policies lapse.

Inexperienced Drivers

Inexperienced drivers are known to be the cause of the most car collisions because of their inexperience. Teenagers who have just received their licenses are often classified as high risk because of this and the numbers of accidents that they are involved in shows that this isn’t unwarranted.

DUI’s and DWI’s

People arrested for driving under the influence (DUI) or driving while intoxicated (DWI) are in a demographic that is most often quoted the highest rates when they try to purchase car insurance. They are seen as the most dangerous drivers and their insurance companies often drop them from their coverage because they are too much of a risk for them to continue to insure.

Too Many Points on the Driving Record

People can receive points on their driving record for several reasons. Some of these reasons may be:

  1. Reckless driving
  2. Speeding
  3. Running a red light
  4. Running a stop sign
  5. Causing an accident

Each state has different criteria, but all these violations receive a set number of points that will be added to the driving record. More points means that the driver is a higher risk.

Filing Too Many Claims

People who have filed several claims to have their vehicles repaired several times make car insurance companies wary. These people will be quoted the highest rates because new car insurance companies know that they are very likely to file a claim with them because of their past histories.

Low Credit Scores

Car insurance companies know that people who have low credit scores have a bad history of paying their bills late. They also know that people with the lowest credit scores are less responsible in all areas of their lives, not just in financial matters. People who have bad credit and people who have bad driving records correlate highly and the car insurance companies call them a high risk.

Driving without Car Insurance

Some people are not diligent when it comes to their car insurance and they neglect to pay their premiums. The policy is cancelled by the insurance company, but these newly uninsured continue to drive without a care in the world. This action makes these drivers high risk because they are taking a huge risk driving without auto insurance and finding a new company to insure them has just become extremely difficult.

Several Denials and Rate Hikes

Any of the above six groups of people will have the same troubles with their auto insurance. When they are dropped from their car insurance companies, they need to purchase another policy as soon as possible. No driver can be without car insurance if their state has written a law requiring that they purchase it.

Is it even possible to find cheap car insurance for high risk drivers? Well, if people become high risk drivers after they have purchased a policy, the insurance company will assess them with higher premiums. Both the group that has their policies canceled and those who have their premiums raised may shop for a low rate from the many high risk car insurance companies that are looking for high risk clients to insure.

After newly classified high risk drivers have been denied coverage from several companies, they can shop for several quotes from a comparison website. They can also take the easier road and not try to do this work on their own in the first place. Go immediately to the comparison website and fill out the information to receive several quotes within minutes.

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