Driving is a privilege, but it comes with its own risks. The unfortunate truth is that accidents happen and car insurance can help cover the costs of these accidents. But what happens when you’re in an accident with someone who has no insurance? It’s unfortunate, but it happens: sometimes we’re in a situation where our car is totaled in an accident. Maybe you were rear-ended by someone who ran a red light, or perhaps the roads are just too icy to drive on.
High-risk auto insurance is not cheap – so before something like this happens to you, make sure that your policy will cover the cost of repairs with no deductibles and no co-pays. This guide will teach you about high-risk auto insurance coverage so that if this situation ever arises, you’ll be prepared.
What Is High-Risk Auto Insurance?
High-risk auto insurance is for drivers who have been denied coverage by regular insurers or if they are unable to find affordable rates elsewhere. These policies typically come with higher premiums, but the added expense may be worth it in order to get behind the wheel again fully insured. Carriers that specialize in high-risk coverage offer a range of options when it comes to pricing and features, so finding one that suits your needs should not be too difficult.
One important thing you might want to consider before applying is whether you need an SR22 filing as well; this depends on state requirements and will determine what sort of policy you can buy.
Which Factors Lead to High-Risk Auto Insurance?
Some essential factors lead to an individual requiring high-hazard accident coverage: driving and non-driving.
1. Speed Trap
What is a speed trap? A speed trap is a place where police watch for drivers going over the posted speed limit. Cameras are often set up, and if you’re caught speeding past one of these cameras, your car’s license plate will be photographed. Speeding equals more tickets for fines that can quickly rack up with each mile per hour over the legal limit. The best way to avoid a speed trap is to slow down.
The best way to stay out of trouble is not to break the law. If there’s one thing we can all agree on it’s this: don’t do anything illegal! Driving close to 100 miles per hour over the posted limit puts people at risk for both life and limb – not just themselves but also their passengers who they’re endangering by putting them in harm’s way.
2. Traffic Violations
Traffic violations are one of the most common ways for your insurance rates to skyrocket. This is because these tickets often come with higher fines and points on a driver’s license, leading to increased premiums or even an inability to renew coverage. Fortunately, there are some things you can do if you want to avoid getting traffic tickets.
If you’ve received a traffic violation or are looking to find out how your insurance rates will be affected, contact an independent agent today for more information. Protect yourself with high-risk auto insurance from the experts at Insurance Agencies.
3. At-Fault Accidents
If your car is involved in an at-fault accident, this could impact your insurance rates. Your insurer will likely assess the cost of repairs to determine how much you have to pay for coverage (also called a deductible). You may also have to pay more for liability coverage.
4. Model Of Vehicle
When purchasing a new car, one of the first decisions you’ll need to make is what type of vehicle to purchase. Many factors will go into this decision, like if your insurance company has an established rate for certain types of cars and how much money you have available to spend.
5. Credit History
One of the first things to check is whether a driver has any significant credit issues. This can include bankruptcy or foreclosure, unpaid taxes, and other heavy debt that will affect their ability to pay an insurance premium. When drivers apply for coverage with a new carrier, they are expected to have at least six months of clean driving records in addition to having a clean credit report.
Summing Up On High-Risk Auto Insurance
The key to choosing the right high-risk auto insurance for your needs is understanding what you need it for. It’s a good idea to make sure that the company also offers other types of coverage so that if they choose not to insure you, at least you’re still protected in case of an accident. This type of insurance may be better suited than regular auto insurance because there are fewer companies who offer this specialized service and rates tend to be lower.
You will have more control over your premium cost as well since most people only get into accidents every few years or more often depending on their driving record.
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