Insurance companies are more cautious than ever, which can lead to even experienced drivers being labelled “high risk” due to past mistakes or mediocre credit. If you have been deemed a risky investment, it can be difficult to find affordable insurance; or even any insurance at all. Rather than settling for the first insurance company that makes you an offer, it’s important to compare your options carefully. It also helps to understand how insurance companies assess risk to take charge of your situation and find the most affordable option.
Reasons for Being Termed “High Risk”
If you have recently been determined to be at fault in a traffic accident, it may come as no surprise that you are now considered to be a high risk driver. However, there are numerous circumstances that lead to this outcome. More than one speeding ticket, a suspended license, or failing to report an accident are all possibilities. The car you drive also has an impact on your risk as a driver, which is why it’s important to look at safety ratings and reliability along with engine power to avoid being labelled high risk. Financial history may also have some impact on your level of risk. If you have any history of missed insurance payments in the past, this could cause your premiums to skyrocket in the future.
Finding an Affordable Quote
The problem with being branded a high risk or “non-standard driver” is that it can make it difficult to find affordable rates. There is a separate industry that has arisen around catering to high risk drivers, offering already-expensive premiums at even higher prices. Although at first glance it may seem like you have very few options if your driving record is less-than-perfect, it’s still worth shopping around. Because every insurance company has a different formula for calculating risk, you may find one that is willing to overlook your high-speed sports car when presented with your clean driving record. Another way to find a lower quote is to drive a reliable car with excellent safety standards. You can read car reviews and comparisons on Motoring and other automotive websites to find a more insurance-friendly model.
Further Ways to Lower Insurance Rates
Many of the tips that apply to standard drivers apply to those at high risk as well. As you start reading reviews and shopping around to find a car that will help lower your insurance rates, pay attention to more than just the safety rating. You may read Holden Captiva review sites and see that it was awarded 5 stars in terms of safety, but it’s also important to consider the cost of repairs and built-in security features. Insurance is all about statistics, so choosing a car that is statistically less attractive to thieves and safer on the road will lower your overall risk.
Your annual mileage also factors into your insurance. If you are a new or high risk driver, lowering your annual mileage could help you incur lower rates. Paying a year’s worth of insurance at once will also help cut costs, rather than spreading it out over 12 months.
Finally, if you have a spotty driving record you might want to ask your insurer about taking additional driving courses to lower your rates.