Insurance companies place drivers into categories, and these categories are divided by risk levels. Anyone who is considered a high-risk driver is placed in the high-risk category, and this means that he or she will pay the highest rates for insurance coverage. The bad news is that high-risk insurance costs more than low-risk policies, but the good news is that you do not have to stay in the high-risk category. If you are wondering how long it will take for you to fall into a different category, here are several things you should know.
Age plays a role in this
A lot of people are placed in the high-risk category of insurance rates simply because of their age. People who are under the age of 25, for example, are usually considered high-risk drivers, primarily because they have a lack of experience behind the wheel of a car. If you are considered a high-risk driver due to your inexperience because of your age, you should know that there is light at the end of the tunnel. Over time, you will gain experience driving, and this will likely help you qualify for a lower-risk category in the future.
Your driving record plays the biggest role
The main reason people are considered high-risk drivers is due to their driving record. For example, a person who files a claim on their auto insurance policy every year will be considered high-risk, as insurance companies will expect the person to file a claim every year. A claim filed is money the insurance company must pay out. To compensate for this, insurance companies charge higher rates to people who have a high probability of filing a claim in the upcoming year.
Tickets and driving charges are another factor that affect a person's driving record. A person who gets tickets regularly will be considered high-risk, primarily because if the person is getting tickets a lot, it is likely that he or she is not following the laws of the road. This increases the person's chances of getting into an accident and filing a claim that the insurance company may pay.
If you have a DUI on your record, it will cause your rates to be higher for the longest amount of time, as this is a serious driving offense.
The good news is that if you work hard to become a safe driver, your driving record will improve over time, and you may eventually no longer need high-risk insurance.