When auto insurance companies calculate quotes for drivers, they often begin by evaluating details about the person requesting the quote. The purpose of this is to determine the person's level of risk. Of all the categories insurance companies use, the category of the driver that will pay the highest rates is the high-risk driver category. Here are some of the factors that cause people to fall into this category.
The first thing that can affect the risk level you are in is your age. If you are under 25 or over 70, you will probably automatically fall into the high-risk driver category. There is not a lot you can do about this factor, but just remember that this factor will change as you age.
Did you know that your gender can also affect what level of risk you are to insurance companies? Women tend to be more cautious when they drive, which means they are less likely to get tickets or get into accidents. Because of this, men tend to pay higher rates for auto insurance than women.
Where You Live
Insurance companies also factor a person's address into the calculation. If you happen to live in an area that has a high record of claims or tickets, this could cause you to be placed in a high-risk category. This means you might be paying more for your insurance simply due to where you live.
One factor you can control is your driving record. If you have a bad driving record, you will be in the high-risk category. Your driving record includes any tickets or traffic violations you have received recently. Additionally, if you have a DUI, or anything similar, on your record, you will also be considered a high-risk driver. Most tickets fall off your record after about three years, but this varies by state.
A lapse in Auto Insurance Coverage
Finally, if you have a lapse in auto insurance coverage, insurance companies will consider you a high-risk driver. Insurance companies do not like seeing lapses in coverage. It makes them suspicious about a person's driving habits and record. If you have experienced a lapse in your coverage, you can expect to pay more for your insurance.
If you are considered a high-risk driver and need insurance, shop around with auto insurance companies to find a company that offers the best rates and products for you and your situation.
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