What Makes A Driver High Risk
Car insurance companies divide policyholders into different categories of risk in order to determine how much rates should cost. These categories are: preferred-risk, standard-risk and high-risk. The final one is also the most expensive category of risk. These drivers pay more than anyone else for auto insurance and have the most difficult time procuring insurance coverage. But what makes a company classify you as high-risk? Find out more on our blog and get car insurance quotes online free from our website!
Car insurance companies assess an individual driver’s personal information, statistical data, geographic info and numerous other demographic and personal factors when determining the cost of a policy. The insurance industry relies heavily on statistics, and they review studies and reports each year about various populations of drivers in order to accurately assess driving habits.
Due to discrimination laws, drivers will have no rates increase or decrease due to race or religion. They can, however, have their rates be affected by age, gender and marital status. These statistical factors will have less bearing on a driver’s insurance costs than their personal driving history.
Different carriers will weigh various factors differently. For example, a single accident may cause a higher rate increase for one company than for another. Aside from car accidents, there are several other factors that can lead to a driver being categorized as high risk:
— Traffic violations, tickets or citations
— DUI/DWI convictions
— Inexperienced drivers
— People whose previous insurance policy was canceled or with insurance gaps
— Drivers between 16 and 25 years of age
— Drivers with poor credit score
Teenagers, especially teenage males, pay more for car insurance than any other group of people. This is because male teenagers are involved in more auto accidents than any other demographic, and auto accidents are the leading cause of death for people that group age.
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