Everything You Need to Know about High Risk Auto Insurance
Every person is unique, and as such, their insurance needs are unique, too. You may have come across the phrase “high risk insurance” while shopping for your insurance policy and wondered if it applies to you. Here, we answer the most frequently asked questions about high risk auto insurance.
What is high risk insurance?
High risk insurance is an insurance market for drivers who are more likely to have a claim. Drivers who fall into this category are those who have:
- Multiple traffic tickets (all traffic tickets affect your insurance rating regardless of points, except parking tickets)
- One or more accidents for which they are at fault
- Cancellations from insurance companies for not paying their premium
If you find yourself with one or more of the above, you may fall into this category for automobile insurance, and unfortunately, you may be there a while. Traffic tickets take three years from the date of conviction to fall off your record, whereas at-fault accidents take six years.
How long will I be “high risk”?
The good news is you will leave the high risk category once your previous tickets or accidents come off your record. In the meantime, it is essential to practice safe driving habits, such as:
- Avoid distracted or impaired driving: Keep your smartphone and electronics out of sight, and never drive while under the influence of drugs or alcohol. These could lead to a major traffic ticket, license suspension, or a serious accident.
- Follow the rules of the road: Stay within the speed limit, keep a safe following distance and obey all traffic signs.
- Review defensive driving habits: It may have been a long time since you received your license, so it couldn’t hurt to review some tips for safe driving under all conditions.
- Pay your insurance premiums on time: Payment issues and cancellations can keep you in the high-risk category. If you are worried about upcoming payments, your broker may be able to make accommodations with your insurance company.
Does high risk insurance cost more?
High risk auto insurance is more expensive than the average cost for car insurance because drivers who are high risk are more likely to have a claim under their auto policy. Insurance is a pool of money; if more payment comes out to pay claims, more money will have to go back in.
Do all insurance companies offer high risk auto insurance?
Most insurance companies target experienced and lower risk drivers. If your driving record changes and you are no longer one of their targeted clients, you will likely find yourself not being offered a policy at your next renewal. If you are insured with a direct insurance company, you will probably need to look for a new car insurance company. If you use an independent insurance broker representing multiple insurance companies, they should be able to offer you auto insurance with a high risk insurer.
Where can I get high risk insurance?
There are a few options for high risk insurance in Ontario. Some companies that provide high risk insurance include Echelon Insurance, Jevco Insurance, Pafco Insurance, Coachman Insurance and Economical Insurance. For the highest risk drivers, Facility Association is often the only auto insurance option. Facility is an organization that guarantees insurance coverage for drivers who cannot get it elsewhere.
If you need high risk auto insurance, contact a licensed insurance broker. Only an insurance broker can shop the market and find you the best coverage for your situation. Some high risk insurers may offer multi-vehicle discounts or home & auto bundles that would keep you covered and help reduce premiums. Your broker will provide you guidance on how to improve your driving record and review your policy each renewal to ensure your policy details are up to date to move you out of this insurance market as soon as possible.
To learn more about high risk auto insurance, feel free to call or email a professional insurance broker at isure insurance! We are always happy to go through the types of insurance that will suit your needs the most and find you the best rate.
Tags: Auto Insurance