High Risk Auto Insurance

There are different types of auto insurance policies that are generated by several insurance companies world-wide. A common convention that is used to categorize the different auto insurance policies is to segregate them according to the level of risk which they bear, which brings us to high risk insurance policies. The concept of high risk insurance basically, means that the insured person has a history or probability of getting into an accident. In the following article, some important aspects of such insurance policies have been discussed.

What is High Risk Insurance?

This must be the first query that you may be having in your mind. In order to understand what does high risk category mean, it is first important to ascertain the working of the auto insurance policies and insurance company mechanism.

Auto insurance is a coverage policy that is provided for people who drive any vehicle. In some states of the United States, auto insurance is a compulsion, without which a person is not allowed to drive. Based upon the person's age, driving record, history of health, type of car and commutation distance, the auto insurance company is to be paid a specific premium. This amount is then given a maturity period. Upon cases of accidents, the auto insurance company pays for a considerable amount of expenses such as car repair, legal and court fines, some health and first aid expenses and also damage to property. These compensation items are included in the insurance agreements.

High risk auto insurance is provided to some people who are prone to accidents, or have a history of accidents. The term 'high risk' is basically an implication of the larger risk levels that are foreseen, implying that the high risk people will demand compensation and claims in greater volumes and with a greater frequency. From the company point of view, the 'risk' of such insured people is greater. There are two principle categories of insured people who are offered high risk insurance:

    Young drivers or drivers who have started driving recently, similarly very old people suffering from chronic illness such as diabetes and hypertension. For young chaps, there are separate student auto insurance coverage.
    The second category is that of people who have a record of rash driving and safety violations. This class of insured people have records of drunk driving also known as DUI, and by law they need a DUI auto insurance. Often you will find a requirement of a legal document issued by the traffic authority indicating a SR-22 insurance requirement, which is usually a comprehensive auto insurance policy. It must be noted that in many states, regular rash driving and over speeding may also result in the issuance of a SR-22.

High Risk Auto Insurance

The high risk insurance rates are sky-high, which is often viewed to be a drawback. Such insurance policies are never included in cheap auto insurance categories. The high risk polices, usually include, the following:

    Auto repair and medical (first aid) expenditures of the insured person. In some cases where the person is not driving his own vehicle, the repair cost is not reimbursed.
    Often, when the coverage is a comprehensive coverage, the repair or first aid cost of the other people involved in the accident are also covered. The premium of such a coverage is high.
    In some cases of high risk policy, the liability insurance also becomes a part of such an insurance policy. It means that if a person gets sued after the accident, a substantial amount of cost arising from thereof, is covered by the auto insurance company.

There are a substantial number of high risk insurance providers and would be excellent to get auto insurance quotes from top auto insurance companies.


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