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All About High-Risk Auto Insurance

Driving a car can be a risky undertaking, and with so many cars on the road accidents and crashes have become an unfortunate fact of life. Car insurance companies know this, and they write their policies and set their premiums accordingly. When an individual applies for car insurance, he or she will be rated on a number of different factors, including the part of the county they call home, the type of vehicle they choose to drive and of course their individual driving record.

Those who’s driving records are spotless – free of moving violations, traffic tickets and accidents – can expect to pay the lowest possible premiums for the car insurance coverage they need. These individuals typically have their choice of insurers, and they generally will not run the risk of being turned down for coverage. That is because a stellar driving record makes the applicant a good risk – and a good deal for the insurance company.

Those whose driving records are not so spotless may have a more difficult time obtaining the coverage they need at an affordable price. Car insurers, like insurance companies everywhere, are all about risk, and the risk they perceive is reflected in the decisions they make. When a car insurance company finds an applicant with a less than perfect driving record, they may assess a higher premium or even deny coverage altogether. These decisions can be devastating for drivers who need the coverage, but there is a solution to this all too common dilemma.

For drivers with a string of accidents, tickets and other driving challenges the answer may lie in high risk auto insurance. This type of car insurance coverage is designed specifically for those with less than perfect driving records, and it can provide the needed coverage at an affordable price. As with other types of car insurance it is important to shop around and compare rates carefully. The premiums for the same type of coverage can vary quite a bit from company to company, so it definitely pays to shop around.

Individuals who are having a difficult time finding affordable car insurance may also want to check with their state’s insurance commission. Many states have set up a high risk pool that drivers can buy into. By spreading the risk around these high risk pools seek to keep premiums low enough to be affordable. Each state uses a different state of criteria, but a high risk pool can often be a good choice.

Drivers in search of affordable coverage for high risk car insurance should be wary of the minimum coverage trap as they shop. When requiring car insurance coverage states set their own levels for minimum coverage, but often these minimum coverage requirements are unrealistically low. It is important for drivers to look at their state’s required minimum coverage and determine for themselves if it truly meets their needs. Those drivers may find that adding additional liability coverage is not very costly, and this additional coverage will provide much needed peace of mind as well as financial protection.

There is no doubt that finding affordable car insurance coverage is more of a challenge for those who have had one or more accidents. But by shopping around those individuals may find that they truly can afford the coverage they need. And of course keeping a clean driving record going forward will help those drivers recover the exceptional premiums available to the best drivers.