May 21, 2010

4 Ways To Avoid High Risk Auto Insurance Classification

With the rising cost of living, many people are looking for immediate solutions to lowering their bills. This, of course, includes what they are paying for insurance on their vehicle. Those who are concerned about what they are paying and are concerned about high risk auto insurance classification, will be happy to know that there are four ways to avoid this.

The first way to avoid being grouped into this particular classification is to keep a clean driving record. Anyone with a DUI or DWI on their driver’s record will immediately be considered as a high risk, as well as those who have been involved in two or more auto accidents. If you have received numerous marks against your record, it may benefit you to take a driver’s safety course.

Those who have large gaps in their insurance coverage will also find that the auto insurance quote they receive is often much higher. The reason for this is that insurance companies want to see that you have continuous coverage. In the event of gaps in coverage, they will believe that they, too, will just be insuring you for a short time and will be actually losing out on making a profit.

As young drivers are often placed in this category, without any fault of their own, other than being young, students and young adults will want to do everything they can to maintain good grades in high school and college. The insurance companies will consider any young person with good grades as a much more reliable individual. To them, more reliable means the young person will be less of a risk on the road.

Last, even older drivers can be classified as a risk, even if they have nothing on their driving record. Anyone with extremely poor credit will also be considered a risk. The insurance companies look those with poor credit as someone who may not be reliable behind the wheel or paying their insurance bill. Paying your bills on time and making sure that all of your insurance payments are made on time can reduce your chances of getting put into this category.

If you have recently requested an auto insurance quote and have received a higher than expected estimate, you may want to inquire whether or not you have been placed in the high risk auto insurance classification. It is important to remember that the insurance companies will do a thorough search of your driving history, as well as your credit history. The best thing you can do is make certain that any problems in these two areas are avoided to make sure your rates are affordable.