Car insurance companies use an individual’s driving history and personal information as key factors when determining their monthly premium. Based on this information, insurance providers might classify someone as a “high-risk driver.” Knowing whether you are a high-risk driver can help you make better decisions about your auto insurance policy and motivate you to drive safely. Let’s discuss what this label means and how to find out whether you’re a high-risk driver.
What Is a High-Risk Driver?
A high-risk driver is more likely to be in an accident, miss premium payments, or file more claims compared to the average driver. Insurance companies use various factors to determine this status, which can affect your insurance premiums and coverage options. High-risk drivers are riskier to insure as they are more likely to cost insurance companies money.
Signs You Are a High-Risk Driver
Insurance companies have their methods of creating a risk profile for each driver they insure. Ultimately, a person’s driving record, demographic factors, and vehicle information are some of the most important considerations when assessing if someone is a high-risk driver.
Driving Record
A poor driving record and committing serious driving offenses are common signs you’re a high-risk driver. Here are some specific indicators on a driving record that signal high risk:
- Being at fault for one or more accidents
- DUI/DWI convictions
- Frequent speeding tickets or other traffic infractions
- Driving Without Insurance
While some citations and at-fault accidents may remain on your driving record for three to five years, more serious offenses can stay for up to 10 years or permanently—depending on your state and local laws.
Other Factors
Other factors related to a driver’s personal information can make them appear high-risk to insurance companies. We will explore a few key indicators below.
- Teenagers and college students are at higher risk because they have less experience driving.
- Insurance companies may view individuals with poor credit scores as higher risk due to financial instability and the potential for missed payments.
- Luxury or sports cars are riskier to insure.
How To Avoid Being a High-Risk Driver
The best way to avoid a high-risk driver label is to drive safely on the road, avoid causing an accident, refrain from risky behavior, and follow all traffic laws. Over time, you can build a clean driving record. Practicing safe driving can mitigate your risk and possibly shorten how long you are considered a high-risk driver. Driving safely also aids in reducing your insurance premiums and promotes safer roadways for everyone.
