When people discuss car insurance the term high-risk driver often comes up. But most people misunderstand what a high-risk driver is and what it entails. Sometimes a high-driver is a comparison between drivers due to factors that determine rates. Other times the labels used for people who have a history of car accidents, traffic violations and more. Ultimately being labeled high risk is never good for your insurance rates, and you may be denied insurance from certain companies
To begin, I want to discuss when certain groups are automatically labeled high-risk. Depending on your age, you may be considered a high-risk driver. Insurance companies believe it is riskier to insure individuals in their teen years, first-time drivers, and those above 65 years old. Insurance companies tend to lump Teen drivers and first-time drivers due to their inexperience driving. On the other hand, companies label those over 65 as high-risk because they are more likely to suffer health issues that may impact driving abilities. So, the label high-risk in these cases are relative, while other groups fall under a different high-risk category.
The other group of people labeled high-risk drivers are those who either caused a serious accident, drive uninsured/unlicensed, or had repeated traffic violations. Insurers label These individuals as high-risk due to their personal driving history. In these cases, people labeled high-risk driver will often need Sr-22 insurance along with their standard auto insurance. The cost of your standard insurance will certainly go up, and your company may drop you. Fear not, however, because companies that deal with high-risk drivers exist.