Who Are the High-Risk Car Insurance Companies?

Who Are the High-Risk Car Insurance Companies?
Who Are the High-Risk Car Insurance Companies?

It is hard to categorize many carriers these days as they have their hands in many pies. Also, they can differentiate the market segments that allow them to charge more for a group of drivers while they can be very competitive for another group. These are just part of basic marketing techniques applied in all industries.

Actually, high risk designation doesn’t come from companies offering them. It is rather a designation for the drivers they insure. When we talk about high risk car insurance companies we mean the carriers who cover more hazardous motorists. They don’t have to have terrible records like DUIs or anything. A driver can actually be categorized in this group for not having any record.

Drivers Who Need These Providers

Straightaway, you could include teenagers in this group since they are considered the riskiest motorists. They have no driving experience or history and usually their credit scores are low too. New drivers are not far off either no matter their age. Companies thrive on information and are scared when there isn’t enough.

You might just be back from overseas after several years. Even though you may have been driving over there and you are an excellent driver, you are still a novice over here and need to pay for it. Recent claims and traffic violations can put you on the list that is avoided by most firms. People with foreign driving licenses are in this category as well simply because they are not standard.

Who Are These Vehicle Insurers?

The link above will offer you a few names. You may be surprised to see some big brands there. As mentioned earlier they do differentiate their rates so that they can still accommodate certain motorists. Or they can charge them more. Applying surcharges is another way of doing it. Therefore, you may want to start with them no matter what the problem is. Anyway, it doesn’t harm to get a few quotes.

Failing with them, you will need to apply to a different class of carriers who are specialized purely on difficult clientele. They are pure high risk auto insurance companies. They may not do things in a conventional method. For example, they may not check your credit score before giving you a quote but this doesn’t mean they are going to be cheap.

It is fair to say that their base rates are expensive because only the people who cannot find coverage anywhere else come to them. One interesting point to note is that you may not know their name but they aren’t totally unknown. Many of them are actually subsidiaries of a larger carrier. They operate under a separate identity but financed by a known brand.

What to Know about Them

Perhaps you shouldn’t have high hopes of better prices through them. They are specialists in certain risks that others aren’t interested in. For example, they offer liability only vehicle insurance to immigrant communities with foreign (often Mexican) licenses. Brand name carriers don’t find these communities profitable enough to go through the paperwork. Also, they don’t like liability only policies anyway.

In a way, high risk vehicle insurance companies offer invaluable service to people who would otherwise struggle to get covered and be legal drivers. Again, their purpose in the system is different in some cases but not always. They can offer policies to people who just ended their suspension after a DUI.

So, if you are one of those motorists who finds it difficult to get a reasonable rate through normal channels you may try some of the companies on that post. There is got to be one that will help you out unless you really are hopeless. In that case, you need to turn to the state insurance department for help.

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