Factors on why your Auto Insurance Rates May be high

Speeding Ticket

Posted On November 15, 2020

Garuav Sharma

Written by Gaurav Sharma

Team Lead & Underwriting Manager
Zehr Insurance Brokers Ltd.

Understanding the need of high-risk auto insurance

Youthful drivers under 25, drivers with performance cars such as sport car or on the off chance that you live in certain postal code zones, may some insurance companies view all as a high risk. Then there are numerous drivers out on the road that are viewed as high risk drivers. They are with multiple speeding tickets, DUI offenders and others who make bad terrible decisions. Driving a vehicle has its own inborn danger factors.

By deciding, to exacerbate those components with careless conduct often leads to accidents, arrests, citations and more. High risk drivers who are arrested for such conduct are frequently imprisoned, fined, have their permit suspended or revoked, have insurance premiums increased or can possibly even lose their job.

The Impact of Convictions (Tickets)

Speeding tickets remain on your driving record for three years. Those who repeatedly get speeding tickets before older ones have lapsed are more likely to be deemed high risk.

Insurance companies typically pull driving records when individuals apply for insurance or when the time comes for a renewal of the policy. The information found there is the basis of the insurance rate you are assigned. At times, if you have just a minor conviction you may find your insurance rates going up. Insurance companies encourage drivers with no conviction by often giving them up to 15% conviction free discount.

On the other hand, if you accumulate multiple convictions, you have become a high risk driver and that insurance is harder to come by.

Each insurer treats information found on your driving record differently. The weight given on your record can vary greatly from one company to another. However, if your company raises your rates, expect them to remain that way for three years. If your driving record is worse than the insurer accepts, you will be deemed high risk and denied coverage. Because guidelines differ for companies, you may or may not find that all companies consider you high risk. If you are truly a high risk driver, as in the case of those with DUI convictions, you will need to get insurance quotes from companies that specialize in offering high risk car insurance.

The Impact of a Suspended Licence

If you lose your driver’s licence, it can affect your life in a variety of ways including interfering with your family obligations and possibly even causing problems in your career. Many jobs are contingent upon having a driver’s licence. If this is the case, a suspended licence causes even more difficulties.

When your insurer learns that you have lost your licence, your policy will be cancelled. This makes it even more difficult to obtain coverage when you need it again. Because of the cancellation and the suspended licence you will likely have to go through a high risk insurance company in order to get coverage, which you will need to have in order to get your licence reinstated.

The Impact of an At-Fault Licence

Sometimes there is no avoiding the fact an accident was your fault — if you hit another driver from behind or hit a stationary object, it’s hard to argue that you were not to blame. Insurers will investigate each claim and will decide which driver was at fault. If you are deemed to be the at-fault driver, this will be noted on your claim.

Unfortunately, at-fault claims tend to affect insurance premiums more than any other claim, as drivers with at-fault claims are statistically more likely to make another claim that will be costly to the insurer.

Tips To Improve Your Rates

In order to keep your rates as reasonable as possible, make sure that you have paid any moving violations that you owe, so they can be cleared from your record quickly. You can also invest in a vehicle that is more safety conscious, less costly to insure and less likely to attract the attention of the police. Increasing your deductible is another option to lower your insurance premium.

By putting these tips in place and shopping around carefully for coverage, you can succeed in keeping your car insurance costs as low as possible, considering your driving record.

Call Zehr Insurance brokers and see if we can help you with your insurance needs.

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