High risk drivers are often at a disadvantage when they are looking for affordable car insurance. Insurers still accept high-risk drivers, but they charge higher premiums. In a nutshell, high risk drivers are accident prone and inexperienced. Insurance companies want to gain profit from monthly premiums and high risk drivers file claims more often, statistically. Each driver has profitability index and car insurance company evaluate whether it is still profitable to include a new driver in their system. By charging high-risk drivers higher, insurance company is able to cover any loss.
Drivers from the 16 to 25 age bracket are considered as relatively less experienced and they are believed as high risk individuals. It is more likely for them to get caught in troubles. As drivers get older, they tend to drive slower and more carefully. It means that people above 25 could have lower premiums. However, people who are older than 55 could have higher premiums due to physical reasons and they are less responsive compared to younger drivers. High risk category may also include people who have multiple convictions of driving while intoxicated (DWI) or driving under the alcohol influence (DUI).
People who have their driving records peppered with multiple tickets are more likely to have more accidents over the year. The insurance company will need to pay for property damage, car repairs and hospital bills; so they try to reduce risks. We can also be included in high risk category if we have turbo-charged or heavily modified cars. Although it’s somewhat stereotypical, people who have faster cars are likely to violate traffic rules and get involved in an accident. It could seem impossible that high risk drivers are able to obtain affordable rates, but there are ways high-risk drivers access much cheaper car insurance.
- Improve driving record: Instilling good driving behaviour is something that we can do. We should check our driving history with local authority and find ways to improve it. This will allow us to know our baseline. From there, we could enrol an advanced driving course. If we have outstanding traffic violations, we should pay them and we shouldn’t repeat them. Teenagers and new drivers should be instructed to pay attention when driving the car. They shouldn’t update social network status when driving or for goodness’ sake, don’t get drunk.
- Install additional security and safety features: We should make it much harder for thieves to steal our car and our car should be safer to drive. As an example, we may install GPS tracker or immobilizer. Using better lamps, seat belts and other safety tools can help high risk drivers to reduce their premiums.
- Change the car: Instead of spending money on making our car faster, we should consider selling our current car and buying a safer model. The car may have anti-lock braking system and other advanced security features. More sedate car models should allow discourage us to drive faster each time we are behind the steering wheel.