Maybe sometimes you feel like pretending you’re Tom Cruise in an Mission Impossible movie; or maybe you imagine you’re driving your Batmobile through the city of Gotham and the GPD has given you a few speeding tickets or reckless driving tickets, but whatever the reason, if you’re considered a “high risk driver” by an insurance company, then you’re likely facing some pretty hefty insurance premiums.
Who Is Considered A High Risk Driver?
Are you a high risk driver? Picture by FlyingPhotography
Drivers who are considered high risk aren’t just those with a lead foot or that have gotten some kind of ticket or had an accident: sometimes a high risk driver can simply be a new driver or a youthful driver who is looking for a more competitive rate since they don’t have any driving experience and since insurance companies deem new drivers a higher risk. Sometimes a high risk driver can be born just from having too many violations within a certain time period, or from making a mistake and receiving a DUI or DWI. Whatever the reason though, finding affordable insurance as a high risk driver is possible and if you do the right things in the future, you will see your premium
begin to decrease due to these factors. It is possible to get a lower rate and to make sure that you avoid higher premiums in the future, and one of the most important things is understanding what makes a driver high risk and how to avoid it. Some reasons you may be considered high risk are:
- Having a lapse in auto insurance coverage
- Having too many tickets, violations, and/or accidents within a year
- Having poor credit
- Needing an SR-22 or FR-44
- Receiving a DUI or DWI
- Driving a ‘high risk’ vehicle when you’re already considered a ‘high risk’ driver or a driver who is close to being high risk
- Being a young driver
- Male drivers as opposed to women
- Residing in an area deemed high risk, such as New York City, where accidents and claims are more likely to happen.
- Having multiple accidents, regardless of who is at fault
Varying Factors That Contribute To Premiums As Though You’re A High Risk Driver
Some of the reasons one may be considered high risk are worse than others, so it’s hard to say exactly how much higher your premium will be just from being a high risk driver. However, simple logic will tell you what reasons will result in a higher premium than others: for instance, regardless of your age, if you have multiple accidents and violations, you’re probably going to have your rate increased more than if you’re considered high risk just because you’re a young driver. Additionally, sometimes the reason you’re considered a high risk driver can end up resulting in something that only makes you even MORE high risk, such as if you had too many violations, lost your license, and ended up needing a SR-22 on top of it. There are a few other offenses that are considered serious risk factors, and sometimes all it takes is one to make your rate increase even more, such as:
- a hit and run accident
- having a ticket for driving while on drugs, not just alcohol
- having just one reckless driving ticket, which in some states, can be defined as going more than 15 or 20 miles over the speed limit or having some kind of an accident, even if only your vehicle is involved
How To Save Money If You’re A High Risk Driver
It may seem impossible, but it is possible to save money even if you’re pegged as a high risk driver. More than anything, it’s all about finding the right insurance company, adjusting your coverage to get the best rate, and doing everything you can to ‘redeem’ yourself of being high risk.
Look For The Right Insurance Company
Some insurance companies specialize in offering insurance for high risk drivers, such as Victoria Insurance, which is owned by Nationwide Insurance and is offered primarily for these drivers, and some others that work with high risk drivers are GMAC or Progressive Insurance. You can also find many insurance companies online that specialize in working with these drivers, and instead of forgoing insurance and attempting to ‘wait it out,’ this is actually the worst thing you could do: although it means you’re paying a higher premium for awhile, it’s better to keep continuous coverage until you’ve proven yourself as a responsible driver. While being insured with these companies, you’re giving yourself the chance to rebuild your reputation as a responsible driver who is working towards re-establishing your record and righting the driving wrongs you may have made, or in some scenarios, waiting until you’re no longer considered a youthful driver, so sometimes, there’s simply nothing you could have done to not be considered high risk.
Take A Defensive Driving Course
One thing you can do to save some money if deemed high risk is to take a defensive driving course, which is like taking driver’s education again. You will have to pay for this out of pocket, and although you may not save the equivalent amount of money on your premium by doing so, it can sometimes give you up to 15% off your rates depending on who you’re insured with, and often you can continue to receive the discount even after you’re out of the high risk zone.
Drive A Low Risk Vehicle
Driving a safe car that is less of high risk will do wonders for your premium. This means avoiding cars that have high price tags, low safety features, or custom parts. Buy a vehicle that is has less of a risk attached: meaning cars with safety features like airbags, alarms, and automatic seat belts, anti-lock brakes, as well as cars that have parts that are cheap to buy and greatly available, like Hondas for instance, since there are so many Hondas available and have plenty of aftermarket parts that are cheap to buy and the car is cheaper to fix. Buying customized vehicles that are expensive or that have a lot of expensive extras will only increase your premium even more. At least consider driving a low risk vehicle until you’re out of the water as a high risk driver.
Look For Extra Discounts You May Be Eligible For
Most insurance companies offer discounts like:
- Affinity Discounts: Available for drivers who are members or employees of certain organizations, like banks, credit unions, or other organizations
- New Family Discounts: Some companies offer a discount if you’ve just had a child and are newly married
- Living in a low risk area: although not always possible, you can get a lower rate if you live in areas where auto theft is low, accidents, violations, and claims are less likely
- Long Term Customer Discounts: Stick with one insurance company and don’t become a ‘jumper,’ as you can get discounts after awhile for staying with the same company
- Multi-Policy Discounts: Try bundling all of your insurance policies, like putting your homeowners insurance with the same company. Sometimes the amount you save on one policy is enough to pay for the other policy
- Consider changing your coverage limits until your
risk is gone: Carry higher deductibles until you’ve re-proven yourself, or let go of ‘extra’ benefits, like roadside assistance. If you’re working hard to avoid accidents anyway, you can take this saved money and be less likely to need it anyway to pay for deductibles
Even if you’re high risk, it is possible to look for ways to save money, and regardless of whether you’re high risk for something you have no control over, putting some of these ideas into action will definitely help you get over this temporary hump.
Btw: The image credits go to FlyingPhotography on Flickr.
