high risk car insurance

Why Do People Say I Need High Risk Car Insurance?

If somebody called you a high-risk driver, you would probably be 50% complimented and 50% bemused. It sounds more like you are a stunt car driver than a regular driver. Yet, if you are designated as a high-risk driver, it simply means that the insurance companies are going to charge you extra if you want insurance with them. It is more of a label to hang around your neck that allows people to charge you significantly more for what is often termed high risk car insurance.

Is It All Your Fault?

Perhaps it is not all your fault, but you are going to have to take some of the blame if they are calling you a high-risk driver. There are several parameters through which you may become a higher-risk driver. Here are a few of the most commonly recorded reasons for calling somebody a high-risk driver. This is not a checklist. In many cases, just having one entry in this list is enough to designate you as high risk.

  • You have had a car accident and a claim has been made by or against you
  • You have had more than one car incident where the insurance companies found out
  • Your record shows you have multiple traffic citations
  • You have received speeding tickets more than once and/or in close proximity to each other
  • You have been convicted of driving while intoxicated (DWI)
  • Your record shows you have been convicted of a DUI (Driving Under the Influence)
  • You received your driving license recently
  • This is the second or more time you have had to reapply for your license
  • You have been required by your state to file an SR-22
  • You have a very poor credit history
  • You drive a very modified vehicle or specialized vehicle
  • Your car is a fairly high-value car

Quite a few of these seem a little unfair, so below we will cover some of the more unfair ones. You will be happy to know that the most unfair ones are the most temporary.

high risk car insurance

The Unfair High-Risk Driver Rules

Having a poor credit history is a pretty lousy reason to label somebody as high risk, but it speaks to something about their character rather than their financial status. If somebody is irresponsible or makes mistakes with money, then they are likely to continue that trend for the rest of their lives. Plus, if they are in a  lot of debt, then things like car insurance, car maintenance, and the payment of tickets will probably suffer. Plus, the companies want to know that you are going to pay your premium every month.

On the flip side, it seems unfair to punish people for driving a high-value car, but the insurance companies are worried about losing money. You may look great in your Lamborghini, but the insurance company doesn’t know if you spend all day looking at it in your garage, or if you are doing donuts in the Walmart parking lot with it.

If you have just received your licenses for the first time, then it is unfair that you are called a high-risk driver, but this is often a temporary matter and you can still find pretty cheap insurance from companies like Mona’s Insurance. In many cases, you can get a great deal on high risk car insurance if you opt to go with Mona’s Insurance because people are judged on a case-by-case basis rather than being lumped together into one big quantifiable group.


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