What is a High Risk Driver?
The term high risk can be used in different ways. Sometimes it refers to one driver being a higher risk than another. It can also be used in reference to a driver not eligible for insurance through a preferred carrier. Most drivers do not get the very best insurance rates. Therefore, most drivers are a higher risk than those few so called perfect driving risks.
The most common ways to not get the very best rate include:
1. Having a Traffic Violation or At Fault Accident
Even one traffic violation puts you at a higher risk than someone with none. It can be frustrating when you have gone years and years with no tickets to get a surcharge for one small lapse in judgment. Some insurance carriers do offer an extra bells and whistles type coverage which would waive a single minor violation per driver.
The same goes for at fault accidents. Filing a claim is a sure fire way to become considered high risk. Sometimes even not at fault claims can raise your rates. Insurance carriers have come up with a way for you to avoid those increases by purchasing Accident Forgiveness.
2. Being a Teen Driver
It is true, young drivers do not have to do anything wrong to be considered a higher risk than a seasoned driver. Their age alone instantly puts them in a high-risk price range. So many young drivers are in accidents and have traffic violations which increases the severity of already high cost insurance. All drivers go through this period of high risk.
3. Not Owning a Home
Normally the term high risk and non-home owner do not go together. But, the homeowner discount can be so good when you think about it, non-home owners must be considered a higher risk than homeowners in the eyes of insurance carriers. Insurance companies like stability and owning a home is a large part of the stability factor. Several online insurance companies do not rate based on home ownership.