High Risk Car Insurance
Posted: Wednesday, February 16, 2011
by Alston Balkcom
1800insuranceCT.com
Nothing makes a person cringe more than the idea of having to purchase a high risk automobile insurance contract. One of the things that makes the subject intimidating is that “high risk” is subjective, and means different things to different people. Let's take a look at high risk car insurance, and put things into perspective.
There are several common factors that most auto insurance carriers will automatically label as high risk in a client. These include multiple at-fault accidents within three years, multiple (more than three) not at-fault accidents within two years, insuring a luxury car a low credit score (under 525), a major driving violation (DUI, Reckless Driving), no prior insurance coverage (or gap in coverage more than 30 days) or a SR-22 Filing Requirement.
Some of these factors can be corrected by the consumer, in a year or less. This means they can then be moved to a “standard” insurance company and pay less premium. These would include improving their credit score and simply staying insured for a longer period of time Other issues can be managed through proper insurance company selection. Some insurers, for example, will not raise rates dramatically, for the first DUI offense, if there are no other violations and the potential insured has a good credit score. Other insurers have a very minimal fee for an SR-22 filing, and one or two will specialize in writing those high value vehicles.
Shopping for more competitive auto insurance rates is going to be more challenging for a high risk potential insured, but it very well could be worth a few hours of effort. Sometimes an existing broker, if used, will automatically refer a customer to the state assigned risk, reinsurance, or facility auto pool – which is probably going to be the most expensive option. Checking rates online or with a few other local agents, could end up saving a considerable amount, over the state “last resort” automobile insurer.
Using a local agent, or calling the prospective insurance company directly, could also result in getting additional credits applied to the account, to lower the premiums. Some of the lesser known credits, can include aftermarket anti theft discounts; home ownership discounts; various driving school discounts (they aren't just for teens, in some states!), and the “package credit” for having homeowners or renters insurance with the same company. Yes, purchasing a second contract, such as renters insurance for an average $130, could save $400 or more in discounts on a high risk car policy. Of course, some of insurers that write this type of auto plan, don't write dwelling insurance. This may mean you need to look at other insurers.
When a customer is facing the prospect of a high risk automobile insurance plan, it literally pays to look beyond the label, do some homework and some legwork, and take these few simple steps to get the auto insurance policy rates back under control. An agent should be doing some of the work for the potential insured. If an agent can't or won't sit down and help you understand your policy choices, and devise a plan to eventually move out of the high risk marketplace, it's time to find a new broker.
You can save money on your car insurance by requesting auto insurance in New Mexico.
You can also lower your cost for homeowners insurance by requesting home insurance in Pennsylvania on the author's Alston Balkcom's website.
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