Are You a High-Risk Driver? How To Find Out
Insurance companies classify driver premiums according to driving habits. The best drivers get the lowest premiums, while those classified as high-risk pay the most. Here’s how insurance companies categorize drivers and how you can tell if you’re a high-risk driver.
Insurance companies divide drivers into preferred-risk drivers, standard-risk drivers and high-risk drivers. Here’s a look at each.
- Preferred-risk drivers. Preferred-risk drivers get the best auto insurance rates because they have fewer accidents and file fewer claims. Insurance companies want more preferred-risk drivers as clients, so these drivers have more power than drivers in other categories because they can shop around and get the best rates.
Preferred-risk drivers are usually over 25 years old, have a clean driving record with minimal at-fault claims, have established a history of paying their premiums on time and own a home.
- Standard-risk drivers. Most drivers on the road are standard-risk drivers. Standard-risk drivers aren’t the best drivers on the road, but they aren’t the worst.
Standard drivers may have one or two traffic violations, no more than one at-fault accident, an average insurance credit score and a history of at least six months with insurance.
It’s important to note that standard-risk drivers can still get very low insurance rates. A perfect credit score may make you eligible for a reduced rate even though you have an at-fault collision. Alternatively, an ideal driving record may cancel any missed payments or blemishes on your credit record.
- High-risk drivers. High-risk drivers pay the highest premiums because they have a record of multiple traffic infractions and at-fault crashes. Rates can become so high that they can’t pay their premiums, leading to missed payments and poor credit scores. This can result in an endless cycle of unaffordable insurance premiums for years and years.
High-risk drivers are often young, male, have a significant traffic violation such as a DUI, a combination of at-fault crashes and traffic tickets, have no prior insurance and have poor credit scores.
A high-risk designation isn’t a life sentence. Insurance companies can be lenient on high-risk drivers who improve their driving records. Check with an insurance broker about high-risk driver’s insurance and what rates you may be eligible for.
How to Track Your Driver Classification
At Eisenhauer Insurance Inc., we offer an app that tracks how you drive to classify you and provide extra discounts on your auto insurance coverage.
The app monitors your driving behaviour and tracks things like:
- Quick stops or accelerations
- Driving at high-risk hours
- Distracted driving such as texting or making handheld calls while the vehicle is moving
This app links directly to the company and adjusts your rate accordingly to the positive for you, based on your usage and safe driving. The app also lets you know your driver category and provides tips to improve your driving for better rates.
High-Risk Driver Car Insurance in Nova Scotia
Our experienced brokers at Eisenhauer Insurance Inc. can help you find comprehensive auto insurance. We specialize in high-risk car insurance and offer 24/7 emergency claims assistance to all our customers. We’ve got you covered in Halifax, Dartmouth and all of Nova Scotia. Contact us today to schedule a no-pressure, no-obligation consultation with an experienced auto insurance broker.