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High Risk Automobile Insurance

Guest post by: Alston Balkcom

Article Overview: Nothing makes a person cringe more than the idea of having to purchase a high risk auto insurance policy. One of the things that take issue with is that "high risk" is such a subjective opinion, and means different things to different people. Let's take a look at high risk automobile insurance, and put things into perspective.

High Risk Automobile Insurance

Nothing makes a person cringe more than the idea of having to purchase a high risk auto insurance policy. One of the things that take issue with is that "high risk" is such a subjective opinion, and means different things to different people. Let's take a look at high risk automobile insurance, and put things into perspective. Although automobile insurance is currently regulated at the state level in the United States, most states allow carriers some flexibility in the actual contract coverage form, and have a wide latitude when it comes to choosing which applicants to insure. They also have some choice as to how they apply the state approved rate structures to each potential insured. This is particularly important when considering the high risk customer, because it means that not all car insurance companies are going to judge the same customer as "high risk".

There are certain factors that most car insurance carriers will automatically label as high risk in a client. These include multiple (more than two) at-fault accidents within three years, multiple (more than three) not at-fault accidents within two years, insuring a high value vehicle (over $70,000), a low credit score (under 525), a major driving violation (DUI, Reckless Driving), no prior insurance coverage (or gap in coverage more than 30 days) or a SR-22 Filing Requirement.

Some of these factors can be corrected by the customer, in a year or less. This means they can then be moved to a "standard" insurance company and pay less premium. These would include improving their credit score and simply staying insured for a longer period of time Other issues can be managed through proper insurance company selection. Some insurers, for example, will not raise premiums dramatically, for the first DUI offense, if there are no other violations and the consumer has a good credit score. Other insurers have a very minimal fee for an SR-22 filing, and one or two will specialize in writing those high value vehicles.

Shopping for more competitive automobile insurance rates is going to be more challenging for a high risk consumer, but it very well could be worth a few hours of effort. Sometimes an existing broker, if used, will automatically refer a potential insured to the state assigned risk, reinsurance, or facility automobile pool - which is probably going to be the most expensive option. Checking premiums online or with a few other local agents, could end up saving a considerable amount, over the state "last resort" car insurer.

Using a local broker, or calling the prospective insurance company directly, could also result in getting additional credits applied to the account, to lower the premiums. Some of the lesser known credits, can include aftermarket anti theft discounts; home ownership discounts; various driving school discounts (they aren't just for teens, in some states!), and the "package credit" for having homeowners or renters insurance with the same company. Yes, purchasing a second contract, such as house insurance, could save $400 or more in discounts on a high risk auto plan. Of course, some of auto insurance carriers that write this type of automobile plan, don't write home insurance. This may mean you need to look at other insurance companies.

When a consumer is facing the prospect of a high risk automobile insurance plan, it pays to look beyond the label, do some homework and some legwork, and take these few simple steps to get the car insurance policy rates back under control. A broker should be doing some of the work for the potential insured. If an agent can't or won't sit down and help you understand your policy choices, and devise a plan to eventually move out of the high risk marketplace, it's time to find a new insurance agent.

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Article Tags: auto insurance policy, automobile insurance, high risk auto, high risk auto insurance
Referred by: http://www.searchengineworkshops.com



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