Insurance Experts Explain Who Is Considered A High-Risk Driver

LOS ANGELES, Nov. 19, 2020 /PRNewswire-PRWeb/ -- Insurance companies classify drivers into 3 main risk categories: Preferred, Standard and High-risk. Policyholders placed in the third category pay really expensive premiums, to compensate for the higher risk of making a claim or missing payments.

• Drivers with a high number of traffic violations are considered high-risk. People with multiple traffic violations in the recent 3-5 years are likely to be placed in this risk category. At-fault accidents and DUI/DWI convictions will automatically make a person be labeled this way. Investing in Accident Forgiveness programs will help drivers avoid rate increases after the first at-fault accident.
• Even a lapse in coverage of just a few days will negatively impact future premiums. Insurance companies prefer clients that had continuous coverage over the course of years. Companies ask about recent coverage lapses before issuing coverage.
• People with a low credit score are also considered riskier to insure. Most insurance companies take into consideration a client's credit score when determining rates. Drivers with poor FICO scores should look for ways of improving their creditworthiness.
• Teens are automatically considered high-risk drivers. Persons between 16 and 25 years old are considered high-risk, due to their lack of experience behind the wheel. However, teens can get a series of discounts, like a good student discount or for leaving the car at home during the academic year.
• Seniors over 65 years old are also labeled "high-risk". According to the CDC, there are higher chances of being involved in accidents after the age of 65. Diminished sight and hearing, plus medication will impair a person's driving capabilities.

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