4 Important High Risk Car Insurance Factors

Posted on 02 September 2011 by Tony Santos

Let’s face it; even if you happen to be living under a rock, car insurance is still a required monthly expense that we all look to mitigate under any possible circumstance. This holds true, if not more so, for the high risk driver, or who high risk insurance Ontario companies like to call the floating craps game, as nothing puts insurance companies on edge more than an insured individuals who seems dicey.

So what can a person do who has been dubbed a high risk? The first answer is to understand the exact reason, or reasons, why they have been thrown in with the lot whose premiums start to resemble the GDP of small island nations. Knowing is more than just half the battle, it could identify half the cause behind your increase in monthly insurance costs. It, therefore, behooves an at risk driver to take some time to know why any past auto thefts, current vehicle location, poor credit score, or whether the insured car is new or used, may be contributing to their status as a gambling prospect.

Grand Theft Monthly Paycheck

While it may be true that lumping driver A, who has a spotless department of motor vehicle record, in with Driver B, a repeat drunk driver, might be considered unfair, if Driver A has had their car stolen, insurance companies often fail to see the difference. Even worse, a person might not even need to have their car stolen for it to increase their premiums, just purchasing a car that is more likely to be stolen, or living in an at-risk area for auto theft, can find the insurance man dipping into your pocket to cover the possibility of theft.

It helps to then do a little legwork before buying your car, as a car model that rarely sees the inside of a chop shop could easily pull you out of the deep end of high risk insurance.

You Live Where?

High risk auto insurance calculations don’t stop and start with theft, and, in fact, much of the work is based around where your car will spend its day, or its night. Driving in a city not only increases your chances of being subjected to pollutants, road rage, and over-active meter maids, it increases your insurance risk, which drags premiums up along with it.

Cities are calculated at being more risky in the insurance game, by way of them simply having more vehicles on the road for you to possibly have an accident with, and increasing the possibility that a parked car could undergo damage from a variety reasons related to a high population.

Not Given Enough Credit

In today’s volatile workplace, a past history of being able to pay debts often gives insurance companies peace of mind when deciding to place an insured driver in a certain risk bracket, and they will pull nary a punch when it comes to finding out if you haven’t paid your cable bill from two years ago.

Cherry Picking

It’s not rocket science to realize that a new car is often worth more than a used one, and insurance companies do enough calculations to protect their investments that they might as well be rocket scientists, so this is beyond clear to them. As such, they will quickly flag an insured driver as at risk if the insured just purchased a new car, thereby raising insurance rates to prevent the possibility of losing out if an accident or theft happens.

Although high risk drivers will find it much more difficult to be insured, it’s not impossible. The internet is a great avenue where users can get insurance quotes in a seamless fashion.

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