High-Risk Insurance Definition and Detailed Explanation: High-risk car insurance is a particular form of high-risk drivers auto insurance policy. These drivers are liable, often resulting in higher vehicle insurance rates, for most insurance firms. But as a high-risk driver it cannot be economical to find it, this is not impossible. If you are a driver with a high risk, the following guide will help you get started.
What Is High-Risk Car Insurance?
High-risk car insurance coverage is reserved solely for vehicles and drivers with a high probability of getting into an auto accident. This type of insurance is typically more expensive due to the increased chance of vehicle damage or bodily injury.
This term can apply to several varied scenarios, such as:
- An inexperienced driver with several traffic violations
- A driver who is currently not eligible for car insurance
- A driver with a high-level offense on their driving record such as a serious injury or death
- Owner of a high-risk vehicle such as a specialized luxury car
Who Is Considered a High-Risk Driver?
Drivers that fall under these categories may be considered high-risk by insurance companies:
- Low credit score
- Multiple speeding tickets or traffic violations
- New or teenage driver
- DUI (Driving Under the Influence) or DWI (Driving While Intoxicated) conviction
- No prior auto insurance
What Is The Difference Between a High-Risk and a Low-Risk Driver?
While a high-risk driver poses a greater liability because of their poor driving record, a low-risk driver is much less likely to get into an accident. Factors that define a low-risk driver include an excellent driving record, a good credit score, no traffic violations, an experienced driver, and no lapse in holding auto insurance. These drivers may also work close to home or live in a smaller community. If so, they are on the road less often and have a reduced chance of getting into an accident.
What Is the Average Cost of High-Risk Insurance in Illinois?
According to research conducted across all 50 states, which also considered high-risk driving factors, the average premium rate of insurance in Illinois is as follows:
- Average: $1320
- Speeding Violation: $2784
- DUI + Car Accident: $2004
- Young Drivers: $6279
How Long Will I Be a High-Risk Driver?
For new drivers or those who have had a lapse in carrying auto insurance, they will be paying a high-risk insurance rate for at least six months. Once the insurance premiums have been paid consecutively for six months, it may be possible to have the insurance rates reduced. Those with multiple ticket violations may see a high-risk status for at least three years as driving violations can remain on a person’s record for three years or more. A major violation, such as a DUI or DWI, can influence car insurance premiums for up to five years.
What Questions Should I Ask When Looking for High-Risk Insurance?
When seeking affordable rates for high-risk auto insurance, it will be helpful to ask these questions of the insurance agent:
- How long will I have to pay higher premiums? An insurance agent can take a look at your driving record, as well as other related factors, and give an estimated time of how long one would have to pay higher insurance rates.
- How much experience do you have insuring high-risk drivers? A reputable auto insurance company with 30 + years of experience or more has the expertise and know-how to offer the most affordable high-risk insurance to their customers.
- Do I have to carry any specialized insurance? If convicted of a DUI, a specialized form called an SR-22 needs to be filed with the state of Illinois.
Do I Have to Complete an SR-22 Form?
Drivers who have had serious driving violations, such as a DUI, DWI, or death-related accident, are required to file an SR-22 document. This document proves that an individual has the minimally required automobile insurance that is required by law. Not all insurance companies offer this important form for high-risk drivers. At American Auto Insurance, we offer cheap SR-22 coverage, and we file electronically to quickly and efficiently expedite the process.
Do All Insurance Companies Offer a High-Risk Option?
Unfortunately, not all auto insurance companies offer high-risk options for vehicle insurance. Some car insurance companies will only insure those who have good or perfect driving records. There are also insurance companies that specialize in helping those with high-risk driving factors find affordable yet valuable car insurance coverage. When searching for high-risk insurance, be sure to ask this question first.
How Do I Find Affordable Options for High-Risk Insurance?
One of the best ways to find affordable options for high-risk insurance is to conduct research and ask the right questions. Gather several quotes from high-risk insurance companies and then compare them. Don’t only compare the cost as the type of coverage can be very valuable. For example, auto coverage with plenty of options, as well as excellent customer service, can be just as important as paying a cheaper car premium.
How Can I Lower My Risk of Becoming a High-Risk Driver?
There are several ways to lower one’s risk of becoming a high-risk driver. These same methods are also valuable for those who are already high-risk drivers, as well.
- Take traffic safety or defensive driving courses
- Follow proven action steps to improve credit score history
- Diligently follow all traffic and parking laws
- Avoid traffic violations by being especially mindful while driving
- Drive a vehicle with safety features such as airbags or automatic seat belts