This article will provide a detailed information about the high-risk auto insurance coverage, and how is entitled to take this type of coverage. Since this type of insurance coverage is costlier than normal types of coverage, we will provide guidance to the drivers, as to what they can do to avoid getting the high-risk auto insurance.
The general reason for this type of insurance
High risk insurance is also known as a non-standard auto insurance. It is necessary for selected category of drivers only, under the specific guidelines of the auto insurance companies.
An auto insurance company might only give a driver this option of coverage if it deems that the driver is at a higher risk of meeting an accident – most preferably those who drive under the influence of drugs – after the issuance of the policy. These drivers might make claims much sooner than the average drivers and insurance providers want to make sure they have as much money available in reserves as possible.
Auto high-risk insurance premiums are about 20 to 26% higher than the usual premium amounts asked for by companies.
Drivers who usually have to take high risk auto insurance coverage
A driver must understand the point system that is formulated by the Department of Motor Vehicles (DMV). If drivers have received higher demerit points (11 or 12 may be), on their driving records, their licenses will either be suspended for 90 days; or he will not be allowed to drive for at least 6 months.
- Drivers who were convicted of Drunk Under the Influence (DUI) or Drunk While Intoxicated/Driving while impaired (DWI) are usually offered this type of insurance policy.
- DUI means driving while drunk.
- DWI means the driver is under some recreational drug.
- Driving while impaired means driving while being on some medication.
In all these situations, a driver puts other people’s lives and his/her own life in danger. Sometimes an insurance policy is cancelled, if a driver is convicted of such offences. Or the driver’s policy is not renewed.
The driver would be penalized for 12 points by DMV for driving any vehicle under the influence of drug, as compared to 2 points for driving too closely to another vehicle or 5 points for driving 21 miles per hour faster than the mentioned speed limit on main roads.
- A total of 6 points are deducted against driver’s license in lieu of other traffic violations.
- Drivers with no proof of any previous insurance
- New drivers with no experience are given this coverage. The company might want the policy to cover the driver for 6 months before high-risk insurance policy is changed.
- Young drivers usually do not have a lot of experience and can easily have accidents.
- Drivers who don’t have their own homes
- Drivers who have insurance claims made against them, might be provided with this policy
- Drivers with poor credit-scores who might not be able to pay off deductibles, are up for this offering.
- The driver’s age will also be considered by the insurance company before making an offer. Usually, drivers in their 60s and above are considered high-risk drivers
- Drivers who are habitual of traffic rule violations, are also entitled to get high-risk insurance policy coverage.
How to escape getting only this policy
To avoid getting high-risk insurance coverage, the drivers must improve their behavior, and discipline themselves. They must drive sensibly on the roads. Once they stop driving carelessly, insurance companies may not force such drivers to obtain a high-risk insurance policy.
- Think about taking some special driving courses, such as defensive driving courses and winter driving courses
- Try to improve your credit-score points. Pay off debts on time. Discipline yourself
- Make sure you follow the driving rules and regulations. Do not make parking mistakes or avoid at all cost any speed limit violations. Do not get into any kind of accidents.
Some cheap high-risk auto insurance companies
Two insurance companies offer the most economical high-risk insurance policies. They are Progressive and GEICO. Approach them if you have no other choice.
You can avoid getting high-risk insurance policy. All you have to do is to be careful while driving. Don’t get yourself into trouble by violating traffic rules. Do abide by them and you are safe to drive your car at any place.
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