High Risk Insurance at the Lowest Cost – A Money-Saving Guide was written for Playlouder by Cristina Par. Please note that contributing opinions are that of the author. They are not always in strict alignment with my own opinions. –Joe.
Some drivers are seen by their insurance companies as high-risk. That means they are more likely to get into an accident and file a claim.
Therefore, if you are a high-risk driver, you will have to get nonstandard auto insurance, which is higher than the cost of standard auto insurance. However, even as a high-risk driver, there are ways that you can get insurance for a lower cost. Check out this money-saving guide to learn more.
Who is regarded as high-risk?
In the world of car insurance, the following people are regarded as being high risk:
- First-time drivers.
- Teenage drivers.
- Drivers who are sixty-five years of age or older.
- Drivers who have lapsed coverage.
- Drivers who have poor credit or no credit.
- Drivers who have DUI or DWI convictions.
- Drivers who have moving violations.
- Drivers who have other serious violations.
Shop Around
If you have committed a serious violation, such as a DUI offense or vehicular assault, most states will require you to get an SR22 certificate of financial responsibility before you can legally drive again, let alone go on a road trip.
The certificate acts as a guarantee to the state DMV, showing that you have obtained and will maintain the legally required car insurance coverage.
While it is true that SR22 insurance can be expensive – in fact, it can be twice as much as standard auto insurance – you can lower the cost by shopping around.
For instance, you can get the cheapest SR22 insurance by using an online comparison platform to compare different insurers.
Whether you have committed a serious violation or you are deemed to be a high-risk driver for another reason, such as being a teenager or a senior, one of the best ways of lowering the cost of your car insurance is to shop around.
Take a Defensive Driving Course
If you can prove to an insurance company that you are now a safe driver, you could get a lower insurance rate. So, one option that is available to you is to take a defensive driving course.
When you successfully pass an approved defensive driving course, your insurer could offer a lower rate for your coverage. Just make sure you check with your insurance provider before you proceed with enrolling in a course.
Defensive driving courses can particularly be beneficial to first-time drivers, teenage drivers, and drivers who have lapsed policies who want to lower their auto insurance costs.
Get a Higher Deductible
One of the simplest ways for high-risk drivers to get insurance at the lowest cost is to raise their deductibles. However, this option does mean you will pay more out-of-pocket should you need to make a claim.
So, make sure getting a higher deductible makes financial sense before proceeding. The more of a risk you are willing to take yourself with paying higher deductibles, the lower your insurance rate will be.
Maintain a Good Credit Score
You may not even realize it, but your credit score can affect the cost of your insurance. Therefore, you can potentially get a good price on your auto insurance if you pay bills on time and avoid getting into debt.
On the other hand, if you have bad credit, insurers will see you as more high-risk and you will likely pay a higher car insurance premium.
Bundle Your Insurance Policies
If you have several insurance policies, or are intending to take out multiple policies, such as home insurance or life insurance in addition to your car insurance, if you bundle your policies with the same insurance company, you could pay less for your coverage.
If you are seen as high-risk for life insurance as well as high-risk for car insurance, bundling your policies can especially make good financial sense.
Install an Anti-theft Device
Another way that high-risk drivers, and anyone else, can save money on car insurance is to install anti-theft devices in their vehicles.
Some insurance companies enable you to lower your annual premium by installing anti-theft devices like LoJacks and car alarms. Indeed, some insurers enable you to save as much as 25%.
Just make sure that you know your insurer offers a discount for installing anti-theft devices and ensure you know which devices qualify before you proceed with installing such devices.
You also need to consider whether the cost of adding a device to your car makes financial sense by weighing up the cost with the savings you can make on your auto insurance.
Keep Your Car Safe
Some insurance companies also provide discounts to drivers who keep their vehicles safe. For instance, if you are able to keep your car in a locked garage at night or when you are away from home, there will be a much lesser risk of your car being stolen or vandalized.
Inquire About Additional Discounts
In addition to the potential discounts you can receive by doing things like installing anti-theft devices and storing your car in a locked garage, you should ask potential insurance companies if there are other discounts you could be eligible for.
For example, some insurers offer discounts to drivers who pay their entire six-month or annual premiums in one go instead of paying monthly. You could qualify for a discount if you agree to receive bills digitally, too.
Being a member of particular organizations or groups could also potentially help you to save money on your car insurance.
Carefully Consider Extras
Sometimes, you can have coverage that you do not actually need, so spend some time looking at the extras that are included in an auto insurance policy and get rid of any unnecessary add-ons that are costing you money, such as legal cover, roadside assistance, and car rental coverage.
Do not feel pressured into adding extras to your insurance for the sake of it. By getting rid of add-ons that you do not require, you can potentially make significant savings on your insurance.
Downsize Your Vehicle
Large and expensive vehicles can cost more to insure than smaller commuter cars, so both high-risk drivers and other drivers have the potential to save on their car insurance by downsizing their vehicles.
If you do not actually need a huge SUV and can instead get by with a standard small car, you could make substantial savings on your insurance.
Just make sure you ask a prospective insurer how much you can save before you ditch your top-of-the-line car for a smaller vehicle.
Consider Moving to Another Location
The cost of your car insurance can differ depending on where you live. Some states have cheaper insurance rates than others.
While you probably will not want to move home simply to save on your car insurance, if you are considering moving anyway, you may want to consider a location that can save you money on your auto insurance.
Summing Up
If insurance companies regard you as a high-risk driver, your first step should be to get SR22 insurance.
There are various ways in which you can get an auto insurance policy at the lowest cost.
To recap, your options include:
- Shopping around for the best car insurance policy.
- Taking a defensive driving course.
- Getting a higher deductible.
- Maintaining a good credit score.
- Bundling your insurance policies.
- Installing anti-theft devices.
- Keeping your car safe when it is not in use.
- Enquiring about additional discounts.
- Carefully considering your extras.
- Downsizing your vehicle.
- Moving to another location.
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