Car Insurance for Risky Drivers, Online Vehicle Insurance
Each insurer has its own guidelines that it follows and as they receive an application for automobile coverage they will evaluate the risks associated with insuring particular individuals and determine rates based on the chances that the potential policyholder will cause a loss. There are many reasons that can make a motorist seem riskier to insure and unfortunately, car insurance for high risk drivers can become less affordable and in some cases downright expensive for certain consumers.
Motorists who have been convicted of driving under the influence of drugs or alcohol will likely find themselves in the high risk category and end up paying more for coverage for many years to come; statistics show that one in three persons arrested for a DUI are repeat offenders. In the eye of insures this means that the policyholder with a prior conviction of driving under the influence is pretty likely to do so again and operating a vehicle while impaired will definitely increase the chance of a traffic collision; therefore, providers must increase premiums to compensate for the potential loss.
Although individuals have the choice not to drive while impaired, there are drivers who may pay more for auto insurance due to factors beyond their control. Motorists under the age of 25 are charged more for premiums, especially in their teenage years; teens are statically shown to be four times more likely to be involved in a traffic accident than more mature drivers and insurers will charge accordingly. While this may seem unfair, the statistics compiled are gathered and analyzed by reputable safety advocates and carriers must protect themselves from losses in the form of higher rates.
Tuesday, Jun. 1st 2010 2:54 PM at 2:54 pm
One very common reason an unlicensed driver would need to obtain coverage is if their driving privileges have been suspended and they need to prove that they have purchased the state’s requirements in order to have privileges reinstated.
According to the South Dakota Department of Public Safety, an operator who has had their driver licensed suspended or revoked following a judgment, lack of insurance, driving under the influence, vehicular homicide or for two convictions of reckless driving in one year must obtain proof of financial responsibility before operating a vehicle within the state; this also applies if they wish to register a vehicle in SD as well.
Although this is an example of one particular state’s laws, there are many cases when unlicensed motorists will need to obtain coverage. Consumers should be sure to be familiar with their state’s requirements to avoid penalties for lack of an automobile policy.