How to Challenge High Risk Auto Insurance Brokers to Lower Rates

Although being declared a high-risk driver can be unsettling, it does not have to mean that your insurance premiums will cost a fortune from here on out. Thankfully, there are many ways to challenge a high-risk auto insurance broker and lower your rates.

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If you have received a high-risk classification, you know that finding standard car insurance seems like a dead end. While high-risk insurance brokers often charge more for their policies, you can put the brakes on their higher rates by following these great tips.

High-Risk Drivers

Usually, a combination of factors plays into why someone receives high-risk status. For example, if you have caused an accident or two and received several speeding tickets, a provider may decide it is more expensive to insure you. Drivers who have been responsible for causing accidents have cost insurance providers a lot of money on claims.

Insurance companies know that people who repeatedly received citations for speeding or driving dangerously are more likely to cause a crash. The more incidents on a person’s driving record, the more likely they will be declared a high-risk driver. As a result, a provider may decide that they can no longer sell insurance to them at the standard rates most people pay.

If there is a high risk of costly insurance claims, the provider needs to charge more for coverage.

You can also be declared a high-risk driver if you do not have a bad driving record. If you have had cash flow problems or your car insurance was canceled due to non-payment, a provider may determine you are a high risk to insure. In addition, if a person has let his or her insurance lapse, he or she could receive high-risk status.

An insurance provider may also decide that an extremely rare and expensive vehicle is too risky to insure at standard rates. Depending on the circumstances, you could receive high-risk status if you drive a dangerously fast vehicle.

For example, if you own a very fast motorcycle, it may take fewer incidents that you cause before you receive the high-risk label.

If you have filed several claims because your car has been broken into or stolen, a provider may also decide you are a high risk to insure. This is more likely to happen in regions with extremely high crime rates.

File Forms

Being convicted of a driving offense is another way to receive high-risk status. For example, if you are convicted of driving under the influence or another serious infraction, most companies will no longer offer you standard insurance.

In fact, drivers who have committed a crime may be required to submit an SR-22 or SR-21 form so they can drive at all. These documents prove that a driver has purchased the amount of insurance they are legally required to have. People who have had their license suspended or revoked must file these forms.

Once the SR-22 or SR-21 form expires, the insurance company must inform authorities.

Although not every state requires you to file these forms, most do. You can find out more about the documents by contacting your state government. For example, in Oregon, the Department of Motor Vehicles oversees regulations regarding SR-22 filings in that state.

Non-Standard Car Insurance

Once you receive high-risk status, providers typically will not offer you standard insurance policies. As a result, coverage for high-risk drivers is widely referred to as non-standard insurance, as the policies are not offered at standard rates.

The goal of these policies is to give high-risk drivers an opportunity to work their way back toward standard rates.

Some major providers sell non-standard policies for high-risk drivers, but many do not. As a result, many firms and brokers specialize in this niche market. Where you can buy high-risk car insurance can also depend on where you live. For example, Indiana requires that each provider cover a certain number of high-risk drivers.

If you are legally allowed to be on the road, you cannot be denied insurance outright.

However, the trick may be finding coverage that you can afford. The good news is that there are several ways to go about lowering your non-standard insurance rates. In fact, depending on your circumstances, you may be able to work your way to prices that are in line with standard rates.

Drive an Inexpensive Car

One of the most practical ways to lower your non-standard rates is to drive an inexpensive car. Valuable cars can easily cost thousands of dollars to repair after an accident, and providers must charge more to insure them. If you are a high-risk driver, providers expect to file claims. By driving a pricey car, carriers will have no choice but to charge you much more in premium.

Drive a Safe Car

Insurance companies like to see high-risk drivers behind the wheels of safe and less dangerous vehicles. It is for the same reason that providers charge high-risk drivers more if they own expensive cars. The safer a vehicle is, the less likely it will be involved in a costly accident that will cost an insurance company a lot of money.

Cars that protect their passengers effectively reduce the chances of a provider having to pay for expensive medical bills after a crash.

In addition, vehicles with modern safety features are better at avoiding serious accidents. You can learn which cars are the safest to drive through various organizations and publications.

For example, according to the U.S. Department of Transportation’s Safecar.gov website, the 2012 Honda CR-V received a five-star rating for safety. The Insurance Institute for Highway Safety, a non-profit organization, awarded the same vehicle a “good” rating for several safety tests.

Improve Your Driving Record

Taking steps to improve your driving record is an effective way to reduce your high-risk coverage rates. Insurance companies examine a person’s more recent driving past as opposed to what happened years ago. In other words, if you drive safely and avoid accidents or tickets, gradually your rates will come down.

Contact your Department of Motor Vehicles to ensure that you have paid off any tickets or fines you have received. If you have any outstanding fines, your rates will go up.

High-risk drivers who have not taken driving lessons should strongly consider doing so.

Nearly every insurance provider offers lower rates to people who have completed driver’s ed. Taking lessons also shows insurance providers that you are serious about improving your driving skills.

Pay Your Bills on Time

If you have a bad credit rating, your rates are probably higher than those of someone with good credit are. If you have had trouble paying your bills in the past, insurance providers will be concerned about getting their money on time.

As a result, it is extremely important to pay your premiums when they are due and to ensure your policy does not lapse.

Similar to your driving record, as you pay off your bills and your credit score improves, your insurance rates should come down.

Buy the Right Coverage

You can save money on your non-standard car insurance by purchasing an amount of coverage that is right for you. It is important for high-risk drivers to carry a significant amount of liability insurance, which pays for damage you cause in an accident. While you may not want to cut corners on your liability insurance, you may not need much more additional coverage.

For example, if you drive an inexpensive car, you may not need very much collision coverage. This type of insurance pays for the repairs your car needs if you cause a crash. Remember, cheap cars are also cheaper to repair.

The same can be said about comprehensive insurance, which pays for damage that does not occur from a car accident. For example, if your car is damaged in a hurricane, comprehensive coverage will help pay for the repairs.

If you do not drive very much, it is also a good idea to ask your broker about a low-mileage discount.

Some providers offer discounts to people who hardly drive at all. After all, the less often you are on the road, the lower the chances of an accident are.

Agree to a Higher Deductible

You can lower your high-risk auto insurance rates by paying a higher deductible. The deductible is the sum of money you agree to pay whenever you file a claim. Therefore, if you agree to a $1,000 deductible, that is how much you will pay out of pocket toward any damage.

The more you agree to pay up front, the less your insurance provider will have to. As a result, your premiums will be lower.

Shop Around

Plenty of companies sell non-standard insurance policies. Look around and find the best deal before you buy anything. A quick and easy way to do this is to shop at a website that compares coverage quotes. After you provide some information about your car and driving history, the website will send you quotes from several providers.

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