Auto insurance costs depend on a variety of factors, from the driver’s location to their driving habits. Being deemed a high-risk driver tends to lead to high insurance rates for one simple reason: a high-risk driver is more likely to make a claim on their policy. But what is a high-risk driver, exactly? And what should high-risk drivers know before shopping for auto insurance? Here are the answers to some of the most common questions.
Who is considered a high-risk driver?
Drivers under the age of 25 are assumed to be high-risk drivers. They’re generally not as experienced and are more likely than older drivers to underestimate the risk of driving. Those who drive trucks, tow trucks or performance vehicles are also considered high risk due to the inherent danger of driving these vehicles. The other categories of high-risk drivers are more obvious: drivers with convictions like DUI or reckless driving, drivers with multiple traffic violations, and drivers with prior claims or accidents.
How does this impact insurance rates?
Rates for high-risk drivers tend to be significantly higher than those for drivers who are deemed safe. This makes it especially important to compare rates across different insurance providers. Some auto insurers outright refuse to take on high-risk drivers, especially if the high-risk aspect is not disclosed as part of the initial conversation. Others claim to exclusively take on high-risk drivers.
