The High Risk Driver for Insurance Firms
Thousands of drivers in the US remain to be uninsured despite carrying car liability insurance or financial responsibility being a mandate in all states (car insurance is not required on drivers in the states of New Hampshire and Virginia, however, they still need to prove capability to provide sufficient funds in case of an at-fault accident; this can be done by posting a bond or cash). The truth is many drivers find insurance policies expensive. Worse, some insurance firms make situations harder for drivers as these continue to look for ways that will enable them to increase premiums.
One way to justify high premiums is by proving that someone is a high-risk driver. Insurance firms identify drivers to be high-risk based on any of the following factors:
a. A driver’s age and driving experience
Young drivers, due to their lack of maturity on the road and lack of experience behind the wheel are more prone to accidents than experienced drivers. Due to this, they are considered high risk drivers by insurance firms. It does not end here, though, for even those who have been operating a vehicle but for only a few years, despite their not having been involved in any type of accident or not having incurred any traffic violation, are also considered by these firms as high risk simply because their driving behavior is still difficult to accurately determine.
b. Type of car driven
Driving a high-powered sports car renders drivers more prone to accidents than those driving regular passenger cars, thus, regardless of how long a person has been driving, he or she will definitely be paying expensive premiums.
c. Driving history
Having been involved in a car accident recently or for a number of times, or having been cited for reckless driving or DUI, will have major effects on the cost of an insurance policy. It is sad to know, however, that some insurance firms make even parking tickets one of the reasons for making insurance coverage more expensive.
d. Need to carry an SR-22 filing
An SR-22, also called certificate of insurance, is required by the court on drivers who have been cited due to driving without insurance or those whose license has been revoked or suspended for whatever legal reason.
For drivers with a suspended license, carrying an SR-22 filing is necessary in order to have their driving privileges or license reinstated. An SR-22 usually lasts form three years; for those charged with DUI, it can be extended up to five years.
The high cost of premiums required by some insurance companies can really be a burden to many drivers. According to Franklin, Wisconsin car accident attorneys, by searching online to compare auto insurance rates or by asking for quotes from independent car insurance companies, drivers will find a really great deal that is within their budget – this is regardless of their age, driving experience and history, type of car driven, or need for SR-22 filing.