Car Insurance for High Risk Drivers

Car insurance protects a car owner from financial loss in the case of an accident or any other damages covered by the policy. There are two types of car insurance available to car owners: Full insurance and liability. Car owners with liability coverage can cover the expenses of people injured by their car. High-risk car insurance is meant for people who are identified as high-risk drivers. The premium of this insurance is about 25 to 100 % higher than normal liability insurance.

Inexperienced drivers and drivers with a bad driving record are also categorized as high-risk drivers and are hence charged higher premiums. In California, high risk drivers are expected to have a SR22 insurance policy from providers authorized to issue it. The SR22 is needed for three years and the Department of Motor vehicles (DMV) has the right to decide when the three years will begin and end. If a driver defaults on the payment of the premium, the insurance providers are required by law to notify the DMV and the driver’s license might be suspended. To lift the suspension, the driver is advised to start a new coverage with another provider in the state. There is also a reinstatement fee to pay to the DMV.

Teenager drivers need to be taught the importance of following driving rules and the importance of a good driving record. A sports car also needs high-risk car insurance as it is considered as high-risk car. Age of the car owner, type of the car, deductibles, and credit score are factors that determine the premiums the owner of the car has to pay.

The car insurance company decides the premiums based on car owner’s last three years driving record. However, this rate varies between insurance companies. If the owner has a number of car accidents or a history of traffic violation on his/her record, then the premiums charged are higher. Brand new cars and drivers highly dense areas towns are also charged a higher premium.

Voluntarily enrolling in a safe driver program or class can help you get back in the lower risk category by lowering your credit risk score. High-risk car insurance terms and conditions are created to keep away cover expenses of insurance companies when insuring drivers within the highest risk group. To keep yourself in the low risk category, all you have to do is pay the premium every month and drive carefully.

Now, that you have understood what high-risk car insurance is, you are recommended to get yourself a policy as early as you can. Start using out free insurance quotes system below and see how much you can save.

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