How can a high-risk driver get the best rates on car insurance? "If you have been identified as a high risk driver, the issue is not how you can get the best rates on insurance, but rather whether you are eligible to get insurance at all," says Clark Jackson, President and CEO of Jackson and Jackson Insurance Agents a.
"If you have been identified as a high risk driver, the issue is not how you can get the best rates on insurance, but rather whether you are eligible to get insurance at all," says Clark Jackson, President and CEO of Jackson and Jackson Insurance Agents and Brokers in Glendora, California. "Most states do not require insurance companies to offer insurance to any person who walks in their door. One exception to this is California, which requires all insurers to offer coverage to good drivers but not to drivers with accidents or other significant infractions on their driving records."
Because most states require drivers to carry a certain level of insurance (minimum limits) there is a mechanism in place that is called the "assigned risk plan". "This is a pooling arrangement," Jackson explains, "which is underwritten by all of the insurance companies offering automobile insurance in your state. It is specifically designed to insure those drivers who cannot find insurance through any other available means. Talk to an insurance agent about this type of coverage to see whether it's applicable to your situation."
"If you are able to obtain quotes from insurance companies," he says, "you may want to consider various levels of deductibles that will accordingly affect the premium you pay. Be careful, however, when selecting a deductible. This is an amount that you will have to pay out of pocket before any of your insurance coverage kicks in. Let's say, for example, that your deductible is $500. Your car is vandalized to the tune of $565 worth of repairs at the body shop. With a $500 deductible, you would be responsible for paying that much up front before the insurance company chips in for the remaining $65. That said, do not select a deductible amount unless you are sure that you would be able to make that payment in the event of loss or damage."
Another considerations that can reduce the amount of your insurance premium is the level of coverage you require. "While a good driver should look more towards asset protection (i.e., home, property, possessions)," Jackson points out, "a high-risk driver may not have that luxury. Consider lower coverages as well as higher deductibles to make insurance more affordable."
Some states, including California, allow their financial responsibility requirements to be met by the driver(s) depositing cash or obtaining what is called a surety policy with the Department of Motor Vehicles. In California's case, that amounts to $35,000.00 on deposit. This can be compared to the practice of banks and credit card companies that allow individuals with poor credit to put some of their own money upfront as a guarantee that they will be able to make payments responsibly and, in doing so, help restore their less than stellar ratings.
"Finally," Jackson adds, "it's important to aggressively work on getting your driving record cleaned up...and making sure that it stays that way! Have a conversation with your agent regarding about how long citations or other violations remain on your motor vehicle record and how insurance companies review this information. In addition, many states allow for the records of minor violations to be expunged if the person who was issued the citation agrees to go to traffic school and refresh their memory on the rules of the road." Ironically, many people eschew this option because they equate going to school with being punished or are embarrassed about being recognized. The fact of the matter is that your fellow "classmates" are all there for the same reason!
