There are several different types of auto insurance policies that you can choose from. Based on your credit history, driving record, number of claims, age, previous accidents, and a few other things you could end up paying more than the average person for auto insurance coverage. If you are considered a higher risk to the insurance company, you will pay more for auto insurance coverage. An insurance company that places you in the higher risk category often deems you risky because of your history of getting into accidents along with DUIs and other things. Elderly individuals that have had multiple claims often have high risk auto insurance coverage that can cost upwards of $450 a month for one vehicle.
Why High Risk?
Insurance companies have to pay thousands of dollars when a person is involved in an auto accident. Not only do they have to pay for the repairs on your vehicle (for full coverage insurance) they also have to pay for the repairs to the other cars that were involved in the accident as well as medical needs and lost wages. Individuals that make multiple claims will have an increase in their insurance premium and too many claims may cause the insurance company to drop you from their plan altogether because you are considered too risky for them to cover.
Categories of High Risk Coverage
According to several insurance companies there are 2 main types of high risk coverage. First is younger drivers or elderly individuals. These drivers tend to make up a large majority of vehicle accidents each year. If you are trying to insure your teenage drivers ask your insurance company about student auto insurance coverage. Elderly individuals often get into multiple accidents and deal with a number of physical limitations such as poor eyesight, hypertension, and diabetes, all which will place them into a higher risk pool.
The second category of high risk insurance coverage will be the individuals that are prone to accidents and have a history of safety violations. Drunk drivers will automatically fall into this coverage. Individuals with multiple speeding tickets will also fall into the high risk category as it is considered rash driving. In some states you must agree to a comprehensive auto insurance plan and sign legal documents with the state in order to drive.
Costs of High Risk Auto Insurance
So how much will you pay for the high risk auto insurance? It varies from one insurance company to the next but the rates are significantly higher. Most of the individuals will want to choose the comprehensive insurance coverage as it pays for your medical expenses, but these policies are very expensive. If you drive a sports car or a vehicle that is already deemed risky, it too will increase the costs of your insurance coverage. It is wise to check with your health insurance company to see what type of coverage they will provide to you if you are injured in an auto accident. This may help you to reduce the premiums on your high risk auto insurance as you do not need to have a higher coverage amount.