Are you a new driver? Then you might have heard about high-risk auto insurance.
Some car drivers are more likely to involve in accidents, driving without insurance or other traffic violations more often. In that case, high-risk insurance can be your ultimate savior.
So what is high-risk auto insurance is and what it does? Stick till the end to know all about this.
What is high-risk auto insurance?
High-risk auto insurance is a type of insurance that covers damages for automobile operators. In Canada, there are several insurances available – high-risk insurance is one of them. It is similar to normal car insurance, except it has different installment amounts and terms and conditions.
However, you may find affording high-risk automobile insurance challenging.
Under some specific situations, the insurance company will allow you to get high-risk auto insurance in Canada.
You usually need high-risk auto insurance under the following scenarios:
- More than one collision recently
- Multiple tickets for over speeding
- Accused of reckless driving
- Charged with drunk and drive
- Accused of other serious driving offences
If you are guilty of any of the above-listed offences, you will be labeled a high-risk driver.
Additional parameters to determine a high-risk driver
Insurance companies have a tricky policy to determine individuals as high-risk drivers. They call it a general rule of thumb.
In short, they use existing statistics to categorize new or old drivers as potentially high-risk drivers. Thus, an insurance company will pressure you to purchase high-risk auto insurance.
Below is the list of people who might be labeled as potentially high-risk drivers.
- A first-time driver
- Drivers above the age of 65
- Individuals with other crime records
- Poor credit records
- Record of juvenile detention
However, you can always find another company that might not take statistical probability to label you as a high-risk driver. In the next section, you can learn six effective tips to buy high-risk auto insurance.
What you need to evaluate before buying a high-risk auto insurance
There are things that you need to consider before buying high-risk auto insurance. Usually, young adults and senior citizen drivers are accused of being high-risk drivers.
If you are categorized as a high-risk driver, you can follow the below tips.
Tip 1: Optimize your options
Numerous companies offer attractive packages for high-risk auto insurance. Check their rates of insurance premium. It will help you to skip rip-off insurance offer.
Tip 2: Look for the small insurance company
Big companies label new drivers as high-risk drivers whimsically. On the other hand, small companies will be relaxed to offer you even regular automobile insurance.
Tip 3: Buy an insurance policy from a specialized company
If you buy insurance for the first time, you should go for insurance companies specializing in high-risk auto insurance. The small and specialized insurance company will provide ultimate benefits.
Tip 4: Ask for additional benefits
Normally, the standard and high-risk insurance usually cover similar types of damages. You may need to purchase additional benefit packages. You can also request them to add the extra benefits on the main package for the same price.
Tip 5: Negotiate for discount
Don’t just simply ask for a discount. Use persuasive language to get a deal. The insurance business is crowded with extending number of competitors. Therefore, you can turn the table of value for money on your side.
Tip 6: Compare insurance pricing
Never be shy to compare insurance pricing with other insurance companies. That means you should not buy an insurance policy on your first go. The first offer may seem to persuade you, but you have to ask the seller to put a hold on the offer.
Visit at least two or three companies to compare the best rate.
In fair assessment, there is no special difference between regular and high-risk car insurance. The most vivid distinction is the rate of insurance.
However, in some situations, you may not be able to skip buying high-risk auto insurance. In such a situation, follow the above-listed tips. And if necessary, don’t hesitate to consult an expert lawyer in the related field.
Good luck! Drive responsibly on streets and highways.
Frequently Asked Questions
Below is the list of most commonly asked questions related to high-risk auto insurance. You can read them to clarify similar doubts.