Usually high risk auto insurance is a term used to describe car insurance coverage involving high rates. For this type of coverage, insurance companies will almost definitely charge a higher premium than for other types of coverage. You will most likely see a difference in rates of each company, but usually you can expect to pay several hundred dollars more for high risk coverage.
Who Exactly Needs High Risk Auto Insurance?
Wondering if it is possible to determine ahead of time if you will need this type of coverage? If a few of the below factors apply to your case, chances are you will need high risk auto insurance.
1. You recently received your license
2. Being younger than 20 can definitely be bad when it comes to car insurance
3. Continuously canceling your insurance
4. You a have very poor credit history
When considering the list of items above, it becomes obvious that there are several things that can cause someone to have to have high risk insurance. Many people think of this type of insurance as bad driver insurance, but considering the reason just mentioned, referring to is as such would obviously be a false statement. Although it may be true many people requiring high risk coverage need them due to a bad driving history, the people who have to have this type of coverage because they are first time drivers, or under a certain age would probably resent having their car insurance referred to as bad driver insurance.
Many people who need to get high risk insurance might be required to obtain an SR-22 form from their insurance company. If you are told by the RMV you need to have this form in order to be able to drive, it will be necessary for you to obtain car insurance from an insurance company which has filed with the state to issue SR-22s.
As a rule, people who have been convicted of a traffic violation and were unable to prove insurance coverage will require this form. Also, those who caused a traffic accident because of major driving violations. The amount of time SR-22 filings are required will vary from state to state, but most states say a minimum of three years. When you cancel your auto insurance or fail to pay during that time, your insurance provider will need to file an SR-26 informing the state you are no longer insured.
Because of the higher premiums associated with this insurance, it can be very unnerving to be told you will have to get high risk auto insurance. At least with the quotes available online today, you will be able to compare companies and make sure you’re getting the best deal. Simply by, paying on time and avoiding moving violations, you can eventually remove the high risk stigma.