What Constitutes "High Risk" In The Auto Insurance World

Posted on: 22 April 2019

If you have tried switching auto insurance providers recently, and you were told that you are too "high risk," you may be stunned. There are several reasons why insurance companies may label you as high risk, some of which you may find surprising. The following shows some of the ways in which companies consider you "uninsurable," and why you may need to look at purchasing high-risk insurance. 

Lead Foot Syndrome

Even if you have never been in an accident, more than two or three speeding tickets indicate that you could be in an accident very soon. You have what the insurance companies call "lead foot syndrome," because you drive too fast too often in zones where you should be driving slower, and you have been caught several times by police. Even if you do not mean to drive fast, it still poses quite a danger to you and those around you, which most insurance companies are concerned about. More often than not, you are either a very young and inexperienced driver, or a very distracted one. Either way, you are "high risk." 

Too Many Accidents on Your Record

Too many accidents on your driving record in a very short time, plus any personal injury or property lawsuits, also makes you a major risk to insurance companies. Personal injury lawsuits from car accidents do not sit well with any kind of insurance company, medical, auto, or otherwise. If you can avoid accidents and wait for them to fall off your driving record, then insurance companies are more apt to help you find a policy that works for you.

One (or More) OWI/DUIs

ANY OWI or DUI conviction on your driving record is high risk. The idea is that if you were willing to risk driving under the influence of drugs and/or alcohol once, you may do it again. If more serious charges accompanied your OWI/DUI conviction, such as injury to others, property damage, or vehicular manslaughter, prospective insurance companies will only offer you high-risk insurance policies. 

Bad Credit Scores

Bad credit scores means that you cannot pay your bills. You cannot keep up with your finances, which leads to erratic payments on your premiums. Erratic payments on your premiums leads to spotty coverage at best, which leads to possible lawsuits if you are not covered at the time of an accident. That is why some insurance companies look at your credit scores and label you a high-risk consumer, even if your driving record is totally clean. 

Contact a company like Allstar Insurance to learn more. 

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