Key Strategies High-Risk Drivers Can Use To Save Money On Auto Insurance Premiums

Jul 27, 2022


Key Strategies High-Risk Drivers Can Use To Save Money On Auto Insurance Premiums

Calculating auto insurance premiums is complex at times because every driver is unique. Generally, insurance companies focus on a person's driving record. If you have been classified as a high-risk driver, finding rates that align with your budget could be challenging. Luckily, you can implement a few strategies to help lower your auto insurance premiums.

Being Classified as a High-Risk Driver

Insurers may classify you as a high-risk driver based on multiple factors. Traffic violations on your driving record are a red flag. You may also be classified as a high-risk driver if you have been convicted of DUI or you were responsible for causing a serious accident. If you own a high-end sports car, insurers may classify you as a high-risk driver because of the costs involved with repairing or replacing parts. If you're driving a car with high crash and theft rates, insurers will also raise your premiums. Be aware that major violations such as DUI and traffic stops will stay on your driving record for an extended period of time.

Common Tips to Help Save Money on Auto Insurance Premiums

Complete A Safe Driving Course

Every state offers diver safety classes. Most of the classes are available in one six-hour session. Completing a driver safety course can help you qualify for a discount and lower your premiums. You should contact your insurer to see which driver safety classes you can take to lower your auto insurance rates.

Assess Multiple Quotes

It's recommended that you shop around and assess rates from multiple carriers. Some auto insurance companies offer policies specifically tailored to high-risk drivers. Whenever a major moment happens in your life, such as buying a home or getting married, your auto insurance rate will likely be impacted. Shopping around during this time period could help you find a cheaper rate.

Purchase Usage-Based Insurance

Major auto insurance carriers give drivers the option to purchase usage-based insurance. These policies are connected to your smartphone and allow insurers to monitor your speed, braking distance, and other metrics. You can earn a discount if the system classifies you as a good driver.

Reducing Coverage

Be aware that you are legally required to carry a minimum level of liability coverage in your auto insurance policy. Some carriers may require you to add personal injury protection as well. While adding collision and comprehensive insurance to your policy is recommended, they aren't legally required. If you're having financial issues, consider reducing your coverage by dropping one of these policies.

If you have an older vehicle, it's recommended that you consider dropping collision coverage as your deductible may not align with the current value of your vehicle. Dropping coverage can help lower your auto insurance premium. It's recommended that you avoid dropping your coverage altogether, as a gap in coverage could lead to you paying higher premiums over the long haul.

Purchase a Different Car

If your vehicle is the primary reason you're paying high insurance premiums, consider switching to another model that is cheaper to insure. For example, switching to a standard model from a luxury car can help lower your premiums. Driving a safer model can also help lower your premiums. It's recommended that you visit the National Insurance Crime Bureau and research vehicles that have high theft rates.

Consult with Udell Family Insurance

If you're classified as a high-risk driver, you may be forced to wait a few years until your status changes. These tips can help you lower your premiums in the meantime. It's also important to practice safe driving habits at all times. If you have any questions, contact our team here at Udell Family Insurance, and we will assist you.

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