If you’ve tried to get auto insurance and been told that you are in the high-risk category, you may be facing some pretty steep monthly premiums. But, knowing that it won’t last forever, and that you can absolutely take steps to get you back into the standard category can help to ease the burden.
Here are the basics of high risk auto insurance and some ideas for how to get those premiums down.
How Auto Insurance Companies Determine High Risk Drivers
Each auto insurance company has their own criteria for determining which drivers fall into the high-risk category. Here are a few common reasons:
- Newly licensed drivers
- A lapse in auto insurance
- A driving under the influence of drugs or alcohol conviction
- Accidents and violations (usually excessive)
- A poor credit rating
Insurers take many other factors into account when determining your risk category, but these are reasons that your company may automatically view you as a high-risk driver.
What You Can Do Remove the High-Risk Requirement
It can be difficult to be faced with the premiums charged to you as a high-risk driver. Getting back into the standard category should be priority number one. Here are a few ways to get there.
Clean Up Your Driving Record
If you are in the high-risk category because of excessive points on your record, do what you can to clean it up. Perhaps take driving course that will remove points from your driving record. And most importantly, obey traffic laws so that no new points are added.
Don’t Let Your Coverage Lapse
If you are experiencing higher rates because you’ve had a lapse in coverage, consider this a lesson learned. Pay your premiums and don’t go without auto insurance for any period of time. A lapse means higher premiums when it’s time to have auto insurance again.
Boost Your Credit Rating
There are lots of ways to boost your credit rating. The simplest way is to pay all your bills on time. If you need to build credit, consider a secured debit card. If you have bad debts, clear them up as soon as possible. Be sure to report rent on time rent or mortgage payments (if you aren’t already). A few months of steady and on time payments may boost your credit enough to show a drop in your premiums.
Wait it Out
If your higher premiums are because you are a new driver or you have had a severe traffic offense or DUI, you may just have to wait it out. Meanwhile, keep your driving record clean, stay out of trouble and pay your premiums on time.
The best way to know if you are getting the best rates is to get some quotes. Use the InsuranceWins quick and easy online form to obtain the best rates fast.