Move from High-Risk to Standard Car Insurance
Car insurance companies categorize drivers into different tiers according to the perceived risk of each driver. Based on your driving record and other factors, you'll purchase car insurance in either the standard tier or the high-risk tier. The high-risk tier is considered less desirable and is associated with higher rates.
High-risk drivers may have problems finding auto insurance companies willing to insure them. In turn, they may have to purchase high-risk car insurance, which is typically much less affordable than standard car insurance.
There are ways, however, to change your standing and move from high-risk car insurance to standard car insurance.
Defensive Driving Courses
Your driving history plays a big part in how you are rated by auto insurance companies.
You are likely to be categorized as a high-risk driver if your driving record reflects that you have recently:
- Had several traffic violations.
- Been convicted of a DUI/DWI.
- Been involved in a serious accident.
Several states allow you to take a defensive driving course to get a reduction in car insurance rates. While these courses do not exactly remove your violations or accidents from your record, they may be used to reduce your driving record points and can prove to car insurance companies that you are trying to improve your driving.
Defensive driving courses may be taken in person in a classroom setting, or sometimes online from your computer. Find courses in your state today.
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Driving Accident- and Violation-Free
It may seem obvious, but one of the best ways to move to the standard car insurance tier is by avoiding accidents and violations. While this is seemingly simple, however, there are some considerations to keep in mind.
You'll need to have to consider the amount of time you'll have to keep a clean driving record before you see a change in your status.
State law typically restricts car insurance companies to factoring only the past 5 years of a driver's record into his risk profile. This means that if you keep your driving record clear for at least 3 consecutive years, you are highly likely to move back to standard car insurance rates and see cheaper car insurance quotes.
NOTE: There are a handful of states that allow car insurance companies to look much further back into your driving record. Contact your auto insurance agent or your state's department of insurance for more information.
Buying a Safer Car
It may be a dream come true to own that expensive exotic car, but that same car could be the reason for your classification as a high-risk driver.
Before you purchase any car, consider how much it will cost to insure it. This is especially true for:
- High-end luxury cars.
- Sports cars.
Because of the price of these cars, they can raise your risk profile. You may find that the cost to insure such cars is not worth owning one.
If you absolutely must have a sports car or supercar, shop around for your car insurance, as some car insurance companies specialize in covering these types of vehicles. Getting your car insurance quotes online can make this process fast and easy.
Fix Your Credit
The majority of states allow your credit-based insurance score to be factored into your car insurance rates. If you have a poor credit history, you may be considered a high risk to insure.
The first step to improving your credit is knowing your credit score. You can get a free credit report online through various companies. From there, you can take steps to improve your credit by:
- Paying your bills on time.
- Working with your creditors on plans to help pay off your debts.
- Fixing any errors on your credit report.
While there are various ways to improve your car insurance risk rating and find affordable car insurance, the most effective of these options is improving the way you drive.
Stay safe and drive in compliance with traffic laws, and you are likely to see your risk rating improve, along with your car insurance rates.