5 Things To Know About High Risk Car Insurance

As a driver on the road, you need car insurance. Since car insurance costs money, you want to be sure that you have the most affordable insurance possible so that you can continue to hold onto the policy and pay for it each month. Most people are able to get the most affordable car insurance possible; however, you won't be able to if you are considered a high risk driver. In this case, you will be required to hold high risk car insurance. Here are five things to know about this type of car insurance:

  1. Expensive: High risk car insurance is extremely expensive. You will have to pay for this if your car insurance company has labeled you as a high risk driver. In order for the car insurance company to save money, they will have you pay more for things, such as your deductible, premiums, and other out of pocket expenses. In some cases, you may not be eligible for additional coverage, but instead will only be able to receive the basic liability coverage.
  2. Avoid a DUI: If you receive a DUI, you are going to be labeled as a high risk driver automatically, even if you are a first time offender. In some cases, your insurance company may even drop your coverage completely. 
  3. Avoid Multiple Traffic Violations: One traffic violation isn't likely to affect your insurance drastically, but with multiple traffic violations, you will be labeled as a high risk driver. Car insurance companies aren't going to want to help protect someone who is not driving safely on the road. 
  4. Avoid Multiple Claims: Making multiple claims on your insurance policy is eventually going to label you as a high risk driver. Although you won't be able to avoid making a claim if you are in a car accident, you will be able to avoid making claims for small problems that you can afford to pay on your own. The best case scenario is not to file a claim if the damage done does not cost more than your deductible. 
  5. Could Be Uninsurable: If you are seen as a high risk driver, some car insurance companies will label you as uninsurable. In order to receive insurance, you will have to make a special request through your State Department of Insurance. This will allow you to receive minimum car insurance through the state, but for a high cost. 

When you know these things about high risk car insurance, you can better understand just how damaging poor driving habits can be. Be sure that you avoid illegal activity on the road and always drive with caution. Click here for additional information.