January 8, 2010

Do All Auto Insurance Companies Insure High Risk Drivers

A few accidents or traffic citations can greatly inflate the cost of your auto insurance policy – and the amount of effort it may take to find an auto insurance policy in the first place. Drivers with bad or tainted records are classified as high risks. The high-risk auto insurance they need costs substantially more than standard risk insurance. In fact, some drivers with several points on their records might find it difficult to get auto insurance at all. A number of insurance companies won’t even give an auto insurance quote to high-risk drivers, and outright refuse service. Of course, motorists legally need insurance to drive, so this can be a bit of a problem.

Auto insurance companies deny their services to high-risk drivers for fairly obvious reasons. Statistically, if a driver has been in several accidents or displays a tendency to risky driving behavior, he or she is more likely to make a claim against his car insurance policy. Claims aren’t good for car insurance companies. They cut into profits, especially when another vehicle is involved. If a car insurer doesn’t have the capital to invest in a risky driver’s policy (or, more accurately, if they don’t have the capital to insure every risky driver that applies for coverage), they’ll refuse service. However, this does not mean that high-risk drivers will be unable to find a safe amount of car insurance coverage anywhere.

Many major insurers have special programs designed specifically for high-risk drivers. As you might expect, these drivers will pay more to stay insured, but the coverage is still available. There are often incentives for the driver, too, that can help to bring costs down to a more reasonable level. If a driver isn’t involved in an accident for a set amount of time, rates may decrease. Drivers who take optional defensive driving classes may also see their premiums drop a bit.

If you’re deemed a high-risk driver, consider taking a defensive driving course, trading in your vehicle for a statistically safer car, van, or truck. This can make you less of a risky investment for an insurance agency, and you’ll have an easier time finding a company that will support you. Call insurance companies, and explain your situation to try to find ways to obtain coverage. Use car insurance comparison websites to get several auto insurance quotes simultaneously. Keep at it, and stay persistent to find coverage that works. You probably won’t have access to some of the specialty programs that many modern insurers offer, for instance accident forgiveness coverage (which might have helped you avoid high-risk classification). Still, you’ll be able to drive legally, and over time, you can work to get a lower rate.