What Makes Car Insurance Companies Think You’re a High Risk Driver?
Do you know the difference between a high risk driver and a good one? Chances are, your opinion is a little different from your car insurance providers! The question is, what does your insurer have to say about your driving history?
What Makes a High Risk Driver?
High risk drivers are a major concern for everyone. Most of us think of high risk drivers as people who get on the highways and do 70 in a 35, suffer from extreme road rage, like to have a few drinks before getting behind the wheel or have a inclination to doze off at 65 mph. These drivers definitely present a greater risk to pedestrians, bikers and other drivers than the person thats never broken the speed limit in their life, but for a car insurance company its not just about the risk they present to others. Its also about the risk they present to their insurer.
Car insurance companies are in the business to pay out claims when their drivers are involved in an accident. Seriously-would any of us be paying our insurance premiums if they didnt? Insurers arent philanthropists, however. Theyre in the business to make money, and its not good business to pay out more in insurance claims than you draw in by premiums every year. Thats why they have to carefully estimate the risk of all of their drivers before issuing a policy and do what they can to tip the scales in their favor.
High risk drivers are those that:
a) Are young and inexperienced. (Newly licensed teens and newly licensed adults are going to be judged using the same tape measure.)
b) Have been convicted of multiple traffic violations.
c) Have already caused an accident at some point in the last five years.
d) Are driving a souped up car that begs them to show off and break the rules a little bit.
e) Have been convicted of a DUI or DWI.
How Do You Know if Youre a High Risk Driver?
Chances are, after reading by the list above youve got a pretty good idea of what your insurance company thinks about you. If youre not sure exactly where you fall on the extent of good, bad and ugly go to your friendly neighborhood DMV and ask them how many points you have on your license.
Car insurance companies depend heavily on DMV points to help them determine how big a risk you are behind the wheel. You earn points for being a good driver for five years or more and for completing a driver education or driver improvement course. You lose points for being convicted of a traffic violation or a DUI/DWI.
Yes, you can have negative points on your license. It happens all the time. Check with the DMV to see where your license is sitting.
How to Change Spots on the Naughty and Nice List
If youre sick of paying ridiculously high premiums for your car insurance coverage, relax. Youre in good company! Its easier than you might think to clean up your driving record and get back in the game.
Cleaning up your driving record and putting points back on your license isnt as simple as just paying a few fines. Most traffic violations come off of your driving record after a maximum period of five years, which is why car insurance companies usually offer a five year good driver discount. All you have to do is keep your nose clean that long!
In the meantime, (voluntarily) sign up to take a driver improvement course. This probably wont help you much if youve been court ordered to complete one after a conviction, but if you havent voluntarily doing so can definitely work in your favor. Driver improvement courses are offered in most counties and online, making it easy for you to complete a class wherever you happen to live.
Being a high risk driver is no fun, either for you or for your checkbook, but with a little effort you can clean up your record and be enjoying great car insurance rates and the kind of coverage you deserve. No questions asked.