Information About High-Risk Drivers
If you’ve recently had a couple of moving violations and an accident, you may be one of the many people who are considered “high-risk” by the insurance industry. In insurance terms, these are people who are in the “nonstandard” classification. The first thing to know is that you will not be left without insurance coverage just because you are high-risk. Unfortunately, the truth is that you will probably be paying more for insurance.
The factors that can get a driver moved from the “standard” risk category to “nonstandard” or high-risk category are varied and may include any, or a combination, of the following:
- Having a major moving violation on your record such as exhibition of speed or reckless driving (depending on the points assigned for the violation).
- Purchasing a high-risk vehicle such as a sports car, muscle car or, even a good-old recreational vehicle.
- Obtaining a drivers license for the first time. (New drivers, no matter their age, often start out as nonstandard.)
- Having one or more DUI convictions.
- Being involved in a major accident in which you were found at fault.
- Allowing your auto insurance to lapse.
- Having a number of lesser moving violations (such as speeding or failure to stop) on your driving record in a short period of time.
Premiums for high-risk drivers are always higher than those for drivers in the standard category. The lowest rates typically start about 10 to 15 percent higher. However, just as in the standard insurance pool, rates in the high-risk pool vary substantially. Less experienced and teen drivers do tend to be charged more than older, more experienced drivers, and people who live in rural areas pay less than those who live in urban settings. Some nonstandard drivers with more severe violations on their records may be requested to file a form called an SR-22 with their state insurance departments. The SR-22 is, essentially, a proof of insurance. Not all auto insurance carriers will provide an SR-22 to their policyholders due to the associated risk. This can cause a number of complications to the driver that will probably end with a hike in premiums or possibly even a loss of insurance.
Insurance premiums for high-risk drivers can reach as much as three times the regular premium rate or more. Even worse, once you are a part of this group, it takes some time to get your rates back down again. Drivers with very poor driving records often end up in a state’s “assigned-risk pool.” This group is made up of drivers representing risks that carriers typically don’t want to insure. Assigned-risk drivers pay the highest rates of all, so if you are in this group, you should make absolutely sure there are no other options available to you. There are many carriers that offer high-risk policies, and if you shop around you may be surprised to find that your driving record isn’t as bad as you thought and you can avoid being placed in the assigned-risk group.
The good news is that you can get yourself reclassified… no matter how bad your driving record is. It will, however, take time and effort on your part. For most people, it’s simply modifying their habits. If you are a speeder, slow down. If you like to have a drink, don’t do it when you’re driving. If you have a poor driving record, keep it clean from this day forward. You might want to see if a defensive driving course could help with your reclassification. For most circumstances and insurance companies, if you can keep a clean record for three years, you will drop yourself back to the standard risk class.
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