High-risk drivers end up incurring hefty premiums on car insurance. You might know how difficult it can be to find cheaper options. But with a few considerations, it’s reasonably possible to save money and find affordable car insurance policies.
In this article, we will discuss how a high-risk driver can save on car insurance. Car insurance providers in Alberta prioritize a cleaner record over any other factors.
Here’s what you need to know about insurance for high-risk drivers.
- 1 Who is a high-risk driver?
- 2 Things to know before getting car insurance for high-risk drivers
- 3 How can high-risk drivers save money on their car insurance?
- 3.1 1. Maintain a clean record
- 3.2 2. Bundle multiple insurance policies
- 3.3 3. Raise your deductible
- 3.4 4. Ask for insurance discounts
- 3.5 5. Go to specialized insurers
- 3.6 7. Compare several quotes
- 3.7 8. Ensure a cheaper car
- 3.8 8. Try to improve credit score
- 3.9 9. Consider giving up coverages
- 3.10 10. Take Defensive Driving Class
- 4 Conclusion
Who is a high-risk driver?
Any driver who is more likely to file a claim is considered a high-risk driver by the insurance companies.
Things to know before getting car insurance for high-risk drivers
Car insurance can come with significant complications, especially for high-risk drivers. There are certain things you need to know about insurance for high-risk drivers:
1. Consider your age
According to car insurance companies, people younger than 30 to 35 years are considered high-risk drivers. Younger drivers usually have less experience and are more likely to file claims than experienced ones. Therefore, the younger you are, the higher your risk profile is as a driver.
2. Your marital status
Married individuals enjoy an almost 5% drop in car insurance irrespective of their age. Married people are seen by insurance companies as more likely to have a stable income source and a family, thus being more reliable. Hence, compared to single individuals, insurance companies considered them safer drivers.
3. Check your claim history
If you have filed multiple claims in the past, your insurance cost might increase.
4. Your location
Your car insurance premium cost depends majorly on your location as well. If you reside in a location where more accidents occur, the insurance premium will be higher considering the probability of frequent claims.
How can high-risk drivers save money on their car insurance?
Here’s how you can save money on car insurance as a high-risk driver.
1. Maintain a clean record
A person with a clean driving record has increased chances of saving on their car insurance premium. The cleaner your driving record is, the better your chances of transferring from the high-risk to low-risk profile.
2. Bundle multiple insurance policies
When you buy more than one insurance policy from the same insurer, they usually provide you with a discount. If you have multiple policies, especially for cars and homes, you can bundle them to save money. The two most common bundling types are bundling multiple car insurances and bundling car and home insurances.
3. Raise your deductible
If you want to save money on car insurance, raise your deductible. Though you’ll be paying more on claims, you can save money if there aren’t any claims. This is beneficial, especially when you have a clean record, and there are minimal chances of you making a claim in the future. Check the deductible options the insurance companies are offering and choose the one you’re most comfortable with.
4. Ask for insurance discounts
Though discounts vary from company to company, every insurance company offers varied discounts to its customers. These include good student discounts, discounts for retirees, and professional association discounts.
5. Go to specialized insurers
Many insurance companies specialize in insuring high-risk drivers. If you’re one of them, go to a specialized insurer and avail of cheaper car insurance. They usually have better deals than the bigger insurance providers, making it easy for you to save money.
7. Compare several quotes
While looking for car insurance, you’ll get several quotes from different insurance companies. However, don’t settle on the first few and take your time to compare. Once you compare different quotes, you can find the best deal for yourself.
8. Ensure a cheaper car
The cost of insuring a car depends on the vehicle’s valuation. If you want to save money on car insurance premiums, go for a cheaper vehicle. Your insurance premium will reflect the difference once your vehicle valuation goes down.
8. Try to improve credit score
An individual’s credit score makes a significant difference in car insurance premiums. Compared to a high-risk driver who has a bad credit score and pays lump-sum premiums, you’ll be saving a lot on premiums, thanks to your good credit score.
9. Consider giving up coverages
If your vehicle is old or has almost lost its value, there’s no point in paying lump sum premiums for coverages. Instead, you can consider dropping the coverage and buying a new car. You will surely end up saving a significant amount.
10. Take Defensive Driving Class
Taking defensive driving training from a government-approved center might benefit high-risk drivers. These courses can help you reduce points on your license and lower your premiums.
Now you know how to get the best insurance for high-risk drivers. Though there’s little you can do to change your designation as a high-risk driver, you can still take the necessary steps to begin to make a difference. The key is to have patience and take your time to develop yourself as the ideal low-risk driver.