High Risk Car Insurance

You have had the misfortune of getting involved in many accidents. Some of them are your fault some of them are caused by other motorist. All you know is that you have had to call your insurance company many times and they have had to pay a lot of money for whatever claims that you have asked for. The math of determining if you are a high risk customer is very simple. How many times has the insurance company had to pay out a claim for you? If the insurance company has had to spend a lot of money on you then you can expect that you will slowly but surely be moved to a higher insurance premium group.

According to the Insurance Institute for Highway Safety (IIHS) the definition for a high risk is as follows:

- A motorist who has had more than one speeding ticket within the last three years;
- A motorist who has caused more than one accident within the last five years;
- A motorist under the age of 25 particularly males;
- A student driver with low grades;
- A motorist with a DUI in the last 5 years;
- A motorist with a low credit score.

Although these definitions would seem extremely tight they are just guidelines by the institute. You will find that most insurance companies have such tight definitions. Although having any of these definitions would raise the risk levels seen by the insurance company, most wouldn’t deem you to be a high risk customer unless you have a combination of some of these definitions.

It is a simple fact that car insurance companies are out there to make money. If they see a customer as providing more risk to them then they will have to compensate for that risk by increasing their premiums. It really is that simple. Below are some steps that you can take to lower your risk profile so that your costs will also be reduced.

If you have a DUI then you can put yourself into a rehab program. You should however check with your insurance company which rehab courses they will recognize. More often than not any rehab program that is sponsored by the government agencies will be recognized.

If you have been caught speeding or have been involved in accidents then you can enter yourself into driving schools, specifically defensive driving schools. Again you will have to check with your insurance provider which schools they will recognize and also what discounts you can expect from passing the driving school’s programs.

Sometimes it will also be beneficial to go online to search for companies that specialize in high risk car insurance. You will find that these companies will charge a premium that is slightly less because they can pinpoint what type of driver you are and customize the insurance products especially for your needs.
Keep your deductibles or excess fee high. The math here again is quite simple. If you push your deductibles high your premiums will drop by a corresponding degree.

Your choice of car is also very important. If you are already categorized as a high risk driver, the insurance company isn’t going to like you driving around a sports car. Under these circumstances it normally pays to driver cars that are of lower value and have small engines. A Toyota Corolla or something humble like that will push your car insurance costs way down.

Your driving record is quite similar to your credit report. Even if it is bad currently, there is room to improve it. If you keep to the law and obey all traffic rules, within a couple of years your driving record would have improved to a point that you might no longer be considered a high risk customer. All it takes is patience.