What Factors Determine if Someone Is a High-Risk Driver?

When it comes to car insurance, being labeled as a high-risk driver can dramatically affect your coverage and premiums. But what factors determine if someone is a high-risk driver? Let’s explore how insurance companies track your driving history and why certain behaviors might increase your insurance premiums.

Serious Traffic Violations

Driving Under The Influence (DUI) and reckless driving endanger lives and are red flags to insurance companies. These offenses are taken seriously and often lead to a steep increase in insurance premiums.

The sting of these violations doesn’t fade quickly. Insurers often keep track of such incidents for years, making it challenging to avoid high-risk classification. Taking defensive driving classes is one of the most common ways to lower insurance costs after a DUI.

Frequent At-Fault Accidents and Claims History

Your claims history tells insurers a story about your future risk on the road. A long list of claims is another factor that determines if someone is a high-risk driver.

Driving defensively and avoiding distractions can work wonders for your driving record. Demonstrating sustained safe driving habits can encourage insurers to eventually reclassify a driver as a lower-risk policyholder.

Invalid Insurance or a Suspended License

Operating a vehicle without valid insurance or a suspended license is another huge red flag for insurance providers. These actions show a lack of accountability, which often correlates with risky or unlawful driving behavior.

Having valid insurance and a proper license aren’t just legal requirements, they demonstrate your commitment to responsible driving. Skip these basic legal requirements, and insurance companies will quickly flag your application, increase your premiums, or deny you coverage.

Exceeding Speed Limits or Accumulating Tickets

Speeding tickets are signals to insurance providers that a driver poses a heightened safety risk on the road. Speeding typically correlates with a greater likelihood of accidents, prompting insurers to apply higher premiums to these drivers.

A collection of multiple traffic tickets further establishes a pattern of risky driving behavior. These infractions suggest a disregard for traffic laws, which raises concerns about future violations and potential claims, leading to stricter policies and increased costs.

Lapsed Insurance Coverage or Policy Cancellations

Letting your insurance lapse signals to insurers that maintaining consistent coverage may not be a priority. Repeated lapses often trigger the need for an SR-22 document to reinstate driving privileges. This requirement ensures you adhere to legal standards, and an SR-22 affects insurance rates. It raises premiums immediately and can keep rates elevated for several years

Drivers with frequent policy cancellations face challenges when shopping for affordable insurance options. To avoid this situation, always prioritize keeping your policy active, even during short-term gaps.

Driving behaviors like DUIs, speeding, and frequent at-fault accidents signal to insurers a heightened likelihood of future claims. These actions not only result in immediate consequences, such as higher premiums, but can also have lasting effects on a driver’s insurability. To avoid penalties, keep your license and insurance valid and your driving record clean as the Black Hills air.