How to Lower Rates on High Risk Auto Insurance

High risk insurance can be caused by many things. A bad driving record will put a driver in the high risk category. If you have had multiple speeding tickets, a charge of driving while intoxicated or several at-fault accidents, your insurance company probably considers you high risk. There are several other factors that will place you in the high risk insurance category, resulting in a very high premium.

Take Steps to Lower High Risk Auto Insurance Rates

If you have had multiple speeding tickets, make an effort to slow down and avoid adding any more tickets to your driving record. Depending on the state you live in, your insurance may look at the last 3 to 5 years of your DMV report. It is a slow process to clean up your driving record, but worth the effort in the long run.

Cleaning up your credit report will also help to lower your high risk insurance. Insurance companies periodically check a client's credit report. If your credit report numbers are low, your automobile insurance will be higher. An insurance company will assume you to be high risk for paying your bill.

According to insurance companies, a bad credit report also shows that you are probably stressed about financial matters, and may not be an attentive driver because you have so much on your mind. Get a copy of your credit report and try to remove as many of the debts as possible to raise the score.

Other things that may cause an insurance company to assess a driver as high risk may be where you live, or even the automobile you drive. High crime areas or certain sports cars can cause the insurance company to declare you as high risk. Moving may not be an option, but trading in a high risk sports car for an older, less riskier model will lower the insurance.

Shop Around For Companies that Offer Lower Rates on High Risk Auto Insurance

Many insurance companies deal specifically with high risk insurance. They have a larger client base of high risk insured, so they are able to offer better prices. The best place to shop for high risk insurance is on the internet. You are able to fill out forms to get quotes from several different companies at once. They will compete for your business, which may mean a substantial savings to your premium.

Keep an Auto Insurance Policy Active

People think that the best thing to do if their car breaks down is to just not pay the insurance premium. If you do not notify the insurance company, your policy is canceled for non payment. This could increase your chances of being considered high risk when you want to reinstate the insurance.

The insurance company sees two black marks on your record. You were canceled for non-payment, and you have been uninsured for a period of time. If your car will not be operable for several months, some insurance companies give you the option to suspend the insurance, or put storage insurance on the vehicle.

Storage insurance on your auto will still have a monthly premium, so it shows you as having insurance even though you were not operating the vehicle on the road. Discuss your options with an insurance agent, before you let the coverage lapse.

Sources:

"Car Insurance Rates," CarInsuranceRates.com.

"Insurance," FinancialWeb.com.