What Is High Risk Car Insurance?

High risk car insurance is defined as insurance coverage provided for an individual or vehicle that is considered to be more likely to be involved in an insurance claim related situation. A high risk vehicle could also include one that was extraordinarily high priced. A Lamborghini could be considered a high risk vehicle, for instance.

To determine the risk factors for a particular person, insurance companies will look at that person's driving history, occupation, expected annual travel distance, and many other factors. High risk drivers fall into a number of different risk categories. A brand new driver is a high risk, based on lack of road experience, but they are not the same type of high risk as a person who has been convicted of two or more DUIs. And believe it or not, men and boys are a higher risk than females, where all other factors are considered equal.

As a rule, high risk car insurance is going to cost anywhere from 15-100% more than low risk insurance. The higher cost reflects the insurance company's prediction that a claim is more likely to be filed and thus a greater risk to the insurance company of having to pay unrecoverable money. Some insurance companies will not insure high risk drivers at all, and the higher the risk becomes, the more difficult it is find coverage, until the only remaining choice is to purchases coverage through a company that specializes in high risk car insurance coverage, and this is some of the most expensive auto insurance available.

For high risk drivers, it may be especially important to find any discounts they may be eligible for. Obviously, safe driver discounts are not likely, but there are still discount available for a number other reasons, including the person's occupation, or special safety features built into the car. If the court has not ordered the high risk driver to take a safe driving course, voluntarily signing up for one may be another method to get a car insurance discount- talk to you insurance agent and find out if this applies to your situation.

High risk car insurance is no joke. It can be very expensive to maintain, and the best advice is to find a way to reduce the risk assessment as soon as possible. High risk insurance exists primarily for those people who must use a vehicle for transportation, but for which traditional coverage is not likely to be sufficient, it is meant to provide for a segment of the population that must be insured by order of state law, but do not qualify for ordinary coverages.