How High-Risk Drivers Can Cut Insurance Costs

Whether you are shopping for an underage driver or have had more than your share of fender benders, finding high-risk auto insurance doesn’t have to be a hassle.

Fortunately, there are some effective strategies to help reduce the cost without sacrificing coverage options.

The first step is to determine whether you really are high risk.

Auto insurance underwriters tend to have different criteria, so it’s a good idea to understand what your auto policy expects for “preferred” and “standard” drivers.

High-risk drivers tend to have several criteria in common, including being young or inexperienced drivers, having an excessive number of tickets and accidents, or having a history of driving under the influence or other infractions.

In many instances, it is possible to reduce the cost of coverage by taking a few precautions or completing additional training.

For example, young drivers with good grades and graduates of driver education classes may qualify for reduced rates. Those with tickets or other traffic violations may qualify for reduced points by participating in special classes.

When in doubt, ask your agent about other incentives or programs in your area.

Some people are good drivers, but still incur higher-than-average premiums due to other risk factors such as credit scores, lapse of coverage and type of car driven. In this situation it is often possible to make a few strategic changes to help reduce auto insurance rates. Common examples include paying down credit card debt, signingup for automatic insurance renewals and carefully selecting your next sports car.

Some drivers are considered so high risk they are repeatedly denied coverage. In such situations, it is still possible to obtain an auto policy via the state “assigned risk” pool. Since this is often the most expensive option, it is a good idea to speak with your agent about other possible alternatives before making a final decision.