subject: Why Does Auto Insurance Company Requires You For A High Risk Car Insurance [print this page] As a car owner, you carefully look for which insurance company to go for. Unknowingly, an insurance company also studies and cautiously selects to whom to offer their service. Insurance companies provide you and your vehicle the needed help. However, you need also to put in mind that these companies are there to make money so they check if there is a need for an owner to have high risk car insurance.
Important factor that affects the kind of insurance rate you will be having is your history in driving. Most companies define you as a high risk driver when you have a history of conviction for driving a vehicle under alcohol or drug influence, or any vehicular violation with in the period of twelve months. This includes hit and run, or reckless driving. If you have one of this driving record this means you have demerit point and will be immediately categorized as a high risk driver.
Driver's risk rating is the basis for car insurance companies in calculating the rates that will be given to owners. Those considered to be a high risk are being forced to invest on higher insurance rates. It is expected that premium rate will be like ten percent higher than the standard one, assuming minor breach. Depending on the company's reason in putting you on a high risk category, you may anticipate the rate may increase about three times higher than the regular insurance rate. This is to cover the cost that will be accrued by high risk driver in the case of accidents which may possibly result to property damage caused by hasty driving.
Companies have different meaning on high risk. A company may assess you to have lower risk than other company does basing on same criteria and these companies may offer you much lower rates.
If you want to be put on a low risk category, it requires a lot of time. Driving safely and steer clear of getting demerits is one thing you should do. And be on time in paying your premiums.
Again, it may even take years to make a transition depending on your record in driving. This ensures your car insurance company package that you choose would not affect your past record.
However, there is another quick option to reduce the cost of your insurance even if you are being recommended to opt for high risk insurance. There are car insurance companies that offers low rates if you choose driving an old model car.
by: Lance Thorington
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