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High Risk Auto Insurance in Canada

High Risk Auto Insurance in Canada

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.

Sometimes, you may need to take legal assistance to get a reasonable car insurance plan. You can also hire a lawyer to lift the label of a high-risk auto driver from you.

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.

Closing notes

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.

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