December 4, 2019 by Arian
What is High Risk Car Insurance?
High risk car insurance is a car insurance policy where you as a driver no longer qualify to be insured with most regular market car insurance companies due to tickets, accidents or cancellations.
How You Become A High Risk Car Insurance Driver
Every car insurance company has filed rules – this means rules of which they will insure a specific driver which are filed with the government. For example:
Insurance Company A: We will only insure drivers with up to 3 tickets.
Insurance Company B: We will only insure a driver that has up to 2 tickets.
Now picture, every company having rules such as these ones above and when you no longer meet the criteria for any regular company, you may have high risk companies who will say:
Insurance Company C: We will only insure drivers who have 2 minor tickets or more but not more than 6 tickets.
Insurance company C – a company for high risk drivers is saying they will insure drivers who have at least 2 tickets but not more than 6 – doing the insurance for these types of drivers usually comes at a higher premium. While the other two companies A and B have far stricter criteria. Furthermore, if you do not qualify for even high risk insurance companies – your only other option can be the Facility Association which can get super expensive.
Common Examples You can become categorized as High Risk:
Impaired Driving / DUI
Often referred to as a DUI, if you are caught driving impaired this is a serious conviction and most regular market insurance companies do not provide insurance for drivers with impaired driving convictions.
Too Many Accidents
At fault accidents can impact the price you pay for car insurance. Even if you are considered 50 or 25 percent at fault, it will impact your record
Too Many Speeding Tickets
Typically having three or more minor tickets such as speeding or even one speeding ticket which is 50 km/h over the limit is considered a major violation and usually is a one way ticket to a high risk company.
With some insurance companies even one distracted driving ticket can get you kicked out which may result in being classified as high risk.