It's the worst label you could land when you're out shopping for car insurance-high risk driver. High risk drivers pay more for their insurance coverage. They're going to have to jump through more hoops to get high quality coverage at a low price, and they're going to find that getting any kind of insurance isn't nearly as easy as it was when their driving record was squeaky clean.
The question is, are you on your insurance company's high risk list?
Unfortunately, being considered a high risk driver by your insurance carrier is easier than you might think. See, issuing car insurance policies is like investing. It's all about profit, loss and risk. When an insurer pays out car insurance claims they're dipping into their profits. It's not a swipe at the insurance industry, it's proven fact.
Since car insurance carriers don't stay in business by paying out more in insurance claims than they make in a year they have to balance the scales, and they do that by evaluating the risk of their drivers when they issue a new insurance policy. If you're statistically more likely to have to file an insurance claim at some point during the life of your policy you're going to be considered high risk. When insuring a high risk driver insurance companies do what they can to tip the scales in their favor.
So what makes a high risk driver? Believe it or not, most car insurance companies have a pretty comprehensive list of what sets a high risk driver apart from other drivers who are considered to be more insurance friendly. That list includes (but is not limited to):
1) Young, inexperienced drivers. Anyone who's had a license less than five to ten years is going to be a bigger risk out on the road. Statistically, these drivers are over 60% more likely to be involved in an accident and need to file car insurance claims. You can see why the insurance industry would be concerned!
2) Drivers who have already been in an accident or two. The theory in the car insurance industry is that if you've been responsible for one accident you're more likely to be responsible for another at some point in the future. **Keep in mind that you have to actually cause the accident for it to count against you.
3) Drivers who have been convicted of traffic violations. A single speeding ticket might not make too much of an impact on your insurance rates (especially if your insurance company doesn't decide to check you out) but more than one can have some serious consequences. The same is true of running a red light, passing in a no-passing zone and just about anything else a judge can find you guilty of.
4) Drivers who have been convicted of a DUI or DWI. Getting behind the wheel after you've been drinking is going to cost you all the way around. If you're going to go out drinking make sure you've got a designated driver in tow.
As you can see, it doesn't take much to end up on your car insurance company's ten most wanted list, but that doesn't mean you have to stay there. Keep your nose clean and even if your driving record is blacker than black within five to seven years you'll be eligible for a good driver discount, enjoying the insurance coverage you need at a price you can afford.
