Being a high-risk driver, you probably regret shelling out high automobile insurance premiums. Your family members and friends would probably be paying lower rates of insurance. Of course, it is logical to get adequate coverage, knowing the risks to third parties and yourself.
As a driver, it’s natural that you would like to get the ‘risky’ tag removed at the earliest. However, as long as this tag continues to bother you, make sure to buy adequate coverage.
Considering the high premium rates that risky drivers need to afford, many of them consult insurance specialists like Surex. The specialists at surex.com/Insurance/auto-car/calgary have presented you with certain guidelines in this post regarding how you can purchase a cost-effective insurance package.
Who Is A High-Risk Driver?
From the perspective of the insurer, you may be a high-risk driver if you have a greater probability of filing a claim. The insurance companies decide this based on certain parameters that compare you to other drivers.
Now, you might be wondering what they might and might not consider being high risk! Usually, the insurers define the term ‘high-risk driver’ using a combination of different factors. You find yourself in this category if:
- You lack driving experience i.e. if you are a new driver
- Your number of traffic tickets exceeds two
- In case your license was suspended in the past
- In case you were at fault during an accident
- If your driving record shows a criminal conviction
- In case you had been delivering goods using your vehicle
- If you have modified the features of your vehicle, eyeing better performance
You might get the ‘risky driver tag even if any of the above situations do not match your profile. Some of the additional factors that contribute to drivers being high-risk are:
- If you have missed the payment of your regular premiums, resulting in cancelled policies
- If you own a car with a higher theft rate or lower rating for safety parameters
- If you had furnished wrong information to the insurer regarding your driving record knowingly
How Would Car Insurers Evaluate Your Risk Level?
Combining the parameters mentioned above, automobile insurers would assess your risk level, categorizing you in any of the following categories.
In case you have made a claim in the past, the insurers would consider that you are likely to make a claim in the future as well. This would hold good even if you had made a past claim for a different type of insurance.
Again, if a driver has an insurance claim filed against him or her, the person would be tagged as a ‘high-risk driver’. Therefore, even without any fault of your own, you might have to pay higher premiums. Shelling out an additional surcharge as ‘accident forgiveness’ can help you reduce this cost.
Low Credit Score
A low credit score implies that you might already be tackling different loans, or have failed to make timely payments for premiums.
Age of the driver
People aged between 16 or 24, or those who are new at the wheels are considered to be high-risk drivers. Lack of experience makes you susceptible to accidents. Some insurers even consider elderly drivers under this category.
How Much More Premium Do You Need To Shell Out?
Well, when it comes to high-risk car insurance, you can’t get it cheap. However, you can try and minimize the premium, and we have discussed this later in this post. Quite frankly, it should be mentioned that you need to pay anywhere between 25% to 100% more in terms of premiums if you are a high-risk driver.
The exact amount largely depends on the category you belong to, considering the options mentioned above, and the nature of your insurance policy.
How To Make Savings On High-Risk Insurance Premium?
Here are some strategies that established insurance specialists recommend to help you minimize your insurance premium.
Raising The Deductible
Raising your deductible is one of the most tactical measures to save on your insurance premium. The process is simple, and you can instantly lower the amount you are shelling out. When you raise this deductible, you need to pay more while making a claim.
However, you would save this amount in case there are no claims. So, you need to choose a deductible that suits your wallet.
Working On Your Record
To put it simply, once you have a clean driving record, you would have to pay lower premiums. Therefore, you have to be careful with the wheels. With consistently better performance and records, the ‘high-risk’ tag would stop haunting you and the insurers would consider you to be a more responsible driver.
Shop Around For Discounts
Often, drivers and car owners are not aware of the discounts that they might avail. Regardless of the insurer, discounts lead to lower premiums. Once you consult an insurance specialist, the professionals will guide you over these packages.
Besides, you may be eligible for these discounts if:
- You have undergone training through a driver’s education
- Your vehicle has an anti-theft device
- The mileage of your car is low
- You make an upfront premium payment for the entire year
- The car has snow tires installed
Getting Rid Of The ‘High-Risk Driver’ Tag
Practicing healthy driving habits and enhancing your skills can help you eliminate the ‘high-risk driver’ tag. In general, the records of missed premium payments and driving tickets remain active for 3 years.
However, if you are at fault during collisions, or have suspended licenses, the tag would haunt you for 6 years. Once you manage to clean up your driving record, you can switch to a standard car insurance policy.
Driving can be fun if you are steady and confident at the wheels. Practicing safe driving measures is highly recommended so that the premiums stop disturbing your pockets. For the time being, it’s logical to approach an insurance specialist that can guide you in choosing the right high-risk driver premium. Although these packages are expensive, experts can guide you over the strategies to try and minimize your expenses!