If you are considered to be hard to insure driver, most likely you are now in the high-risk category for insurance coverage. There can be a lot of reasons as to why a driver may end up in this category that includes:
- Their age
- Driving experience
- Poor driving record that lists multiple tickets
- Being charged with driving infractions such as a DUI
- Having a record of too many at-fault claims
- Letting insurance lapse
- The type of vehicle being insured
- The demographics of the driver
The consequences of being classed as a hard to insure driver is having to pay higher premiums.
How Much Is Hard To Insure Insurance?
As a high-risk driver in Ontario for example you can expect your premiums to be significantly higher than the average insurance rates. High-risk insurance can range between $2,500 to $5,000. All of which is based on several metrics that will be used by the insurance company.
The insurance provider is going to look at all the circumstances that have put the driver in the high-risk category. Then based on this along with the other metrics will come up with an amount.
Insurance Companies do have rules and regulations to follow which are set by the Insurance Bureau of Canada (IBS). This includes how they can go about using the metrics for setting their rates.
A driver who has had their insurance lapse can end up in the high-risk category of insurance. There are several reasons why insurance can lapse and not all of them will cause an increase in insurance rates.
One driver may fail to pay their premiums. This will put them into the high-risk category.
Another driver may have lost their licence for a driving infraction which also puts them in the high-risk category.
The IBC does not allow Insurance companies to treat both these drivers the same when it comes to the increase in premiums.
The insurance companies must look at the severity of the cause of the lapse and based their rates on the merits of the cost.
Finding Cheap Car Insurance For Hard To Insure Drivers
Most that are in this category know that they are high risk. They may have been turned down for renewal by their previous insurance company. Or they have been shopping around and have noted that the rates being given are very high.
Usually, it is the passing of time and making sure there are no reoccurrences of the original causes of the high insurance that will get the premiums reduced. In the meantime, there are some things that can be done to help with the costs.
There are plenty of Insurance Companies and although they all have rules and regulations to follow there will be some significant differences among them. For example, they may feel that some of the high-risk infractions are not as serious as some of the others within this category. Compared to one of their competitors. The only way a driver is going to know this is by doing some insurance comparisons.
There are two ways they can go about this. They can surf the internet to seek out well-known insurance companies then ask for quotes from each of them.
Or they can use a quote finder who is able to do this much quicker and faster. This service will then present a list of options based on price quotes so the driver can choose from the one that they feel is best.
How long the driver is going to remain in the high-risk category is going to depend on the reason they ended up in this category. Much of the information that the insurance company used to come to this conclusion will have come from the driving record. How long that information remains on the record is going to be the indicator of how long the high-risk insurance is going to apply.
For example, a DUI will put a driver into a high-risk category. This can remain on the driving record for up to six years. This means the driver is going to be paying higher insurance premiums for that period of time.
A driver may be in the lower end of high risk because they are insuring a vehicle that is considered to be high risk. It may be a high risk for collision or theft. As long as that vehicle is posing a high risk to the insurance company then the driver will pay more for insurance.
Some of the ways to lower the cost of insurance are:
- Maintain a perfectly clean driving record going forward. Avoiding even minor infractions.
- Choose a vehicle to insure that falls into the cheapest vehicle to insure category.
- Live in an area that is not considered to be high risk.
- If possible reduce the mileage that will be put on the vehicle. For example, instead of using the vehicle to go back and forth to work every day use public transit.
- Look for all the possible discounts that may still be applied even to high-risk insurance. For example, an insurance company may over a discount for using winter tires.
- Increasing the deductible can help as well.
- If the vehicle is an older model consider not opting into collision coverage.
- There may be discounts for installing a theft-deterrent system.
- Consider using telematics. This is an installed device that records driving habits. Some insurance companies may use this to monitor the insured and based on the information it provides lower the premiums on the high-risk insurance.
- Bundling insurance can also help to reduce rates. For example combing vehicle and house insurance.
In summary, every little bit helps. By applying as many of these reductions each year it could significantly reduce the cost of insurance even though the driver is still within this category.