Car Insurance for High Risk Drivers
High-risk auto insurance comes with a hefty price tag, and depending on the level of risk, your application might not even receive approval. If an insurance company has labeled you as ‘high-risk,’ but you are not sure what that even means, then this guide on car insurance for high-risk drivers is just for you.
Read it until the end to find out about high-risk drivers' attributes, how much you can expect to pay for high-risk car insurance, and tips for finding cheap car insurance for high-risk drivers in Ontario, Canada. If let's say you happen to live in Kitchener or Kingston, you can see what kind of rates you will be able to get for car insurance in Kitchener, Ontario, or car insurance in Kingston and get a quote.
What Is High-Risk Auto Insurance?
Before we go into the car insurance aspect, let’s shed some light on what a ‘high-risk’ driver is. Anyone who is likely to file more auto insurance claims than a typical motorist is considered a high-risk driver. Several attributes make one risky in auto insurance companies' eyes, and we’ll dive deeper into this in the next section, so stick with us.
From the standpoint of car insurance in Ontario, things are much more difficult for ‘high-risk’ drivers because they are essentially a liability for the companies. Rash driving or traffic violations in the past increase a person’s probability of repeating the same mistakes and resulting in frequent claims in the future. If you are one of those 'high-risk' drivers, feel free to check rates for places outside of Ontario for comparison like car insurance in Yukon or car insurance in Red Deer, Alberta.
No insurance company wants this because insurance is a ‘pool’ of money pitched in by multiple policyholders for a rainy day. It would not be fair to use a bigger chunk of that sum just on one person because of their repeated mistakes.
We understand that you’re genuinely concerned about your and others' safety and want to get insured as well because of Canadian law. So the GOOD NEWS is that there’s still hope! Whether you’ve had a bad driving record, multiple violations or you’re just someone who’s received their license recently; you can still get high-risk auto insurance. The only catch is; the cost can be through the roof.
Common Types of High-Risk Drivers:
Insurance companies categorize risky drivers in various types, but some of the most common ones that a majority of drivers fall into are:
Poor Credit Score: This means that either the individual will not make timely premium payments because they might be under various loans. Or, it can also mean that they are more likely to make a claim in the future.
Past Insurance Claims: Claims made in the past, even for another type of insurance, can increase your probability of filing a claim for an auto policy. Furthermore, if you have an insurance claim filed against you, you can become a high risk even if you were not at fault. You can still reduce the premium cost of your high-risk auto insurance by getting ‘accident forgiveness.’ This means you’ll pay extra money in case of a surcharge following an accident.
Driver’s Age: If you have just received your driving license or are between the ages of 16 and 24, you’ll be considered high-risk. Since you don’t have driving experience, you are likely to make mistakes on the road that can cause accidents or traffic violations. Similarly, elderly drivers might also be considered high-risk.
Not Owning a Home: Some insurers consider people who don’t own property as high-risk. Having a home in your name means financial stability and surety of timely payments. However, only a small chunk of insurance companies rate stability based on this factor.
Note: Expensive cars like sports or luxury vehicles require a hefty budget for repairs. So even though the driver might not be a high-risk, their car type can increase the premium cost.
How Much Can I Expect to Pay For High-risk Car Insurance?
We won’t sugarcoat things because we’re all about integrity and transparency, so when we say that there’s no such thing as ‘cheap’ high-risk insurance, then we mean it. However, there are always some ways to get affordable car insurance for high-risk drivers, and we’ve discussed them next.
That being said, depending on which type of driver you are from the aforementioned categories and the type of coverage you’re getting, expect to pay an additional 25% to 100% or more in premium costs than an average low-risk driver.
However, as discussed above, there are ways to get the cheapest car insurance in Ontario for high-risk drivers; make sure to read them below.
How to Get Cheap Car Insurance for High-risk Drivers in Ontario
If you’ve made it this far, you might’ve become a bit tense seeing the horrors of being a high-risk driver. However, let us assure you, it’s not as scary as it might seem. Yes, you might be on the list of high-risk drivers now but knowing what’s making you one and how you can overcome it can move you up to the leagues of reliable motorists. Here are a few tips for doing so:
Driving Course: Take a special Defensive Driving Course to decrease your risk of violations and accidents. This can help in reducing your premium cost.
Work on Credit Score: Improve your credit score by at least making the minimum monthly payments on your credit accounts. If possible, paying back all the credit balance can make a difference in your insurance premium.
Drive with Care: Be very vigilant when on the road and DO NOT DRIVE UNDER THE INFLUENCE at all costs. The longer you manage to stay out of troubles, the less risky you’ll become for the insurers.
Choose Your Ride Wisely: Get a car that’s not too luxurious or made for racing/off-road driving. Plus, having additional safety features will help as well.
Shop Around: This point cannot be stressed enough. Do not take the quotes of a few high-risk auto insurance companies you encounter at the start as something written in stone. Connect with a reliable auto insurance broker to get access to certified high-risk insurance companies, get several quotes, compare them, and then decide. You’ll find lower prices with good value this way.
Will I Always be a High-risk Driver?
No, and Yes! This depends on you and you alone because you’ll be under the microscope of the insurance company as soon as you sign that policy form.
If your driving record stays clean from then, you will start climbing out of the ‘high-risk pit,’ and your premium cost will start going down.
Keep doing a good job long enough, and you’ll shake off that high-risk driver status too, which is a great thing to get rid of. Check also this post about drag racing and insurance.