And really, why an insurance company sees some people as high-risk drivers and why these companies charge those more for car insurance than to other people? Is this something that these people did wrong or they just have bad luck? Or this is just a discretionary decision of insurance company; a decision that we have to accept and pay for it in the same way that we are accepting to pay other bills?
We all know that if we want to drive a vehicle, some kind of insurance is obligatory. However, the price for insurance can vary widely here, and this is what an insurance company evaluates based on a driver’s characteristics and the category to which he belongs. In some cases, the insurance company will deny to provide coverage plan if people who are dealing with such evaluation conclude that certain drivers are too risky for them. Of course, we should not take this personally, although it is a very personal matter. It is all about the money. All these companies make profits if nothing happens. We pay to protect us from unwanted situations in the future and if nothing happens, then all money stays to companies. This is why these insurance firms sometimes refuse to take the money from certain types of drivers. Although it sounds pretty much strange (it is not usual that someone doesn’t want to take cash), they are doing this because they want to avoid extra costs.
Who is a high risky driver for an insurance company?
In short, high-risk driver is a person for who is believed that will fill a claim on car insurance more likely than other drivers. This is the reason why these persons are declared for some kind of unwanted clients. When we talk about this specific category of drivers, we have to say that there is no strict definition about it, so every insurance company has its own rules when makes such evaluation. Despite everything, most companies still follow these criteria when they are judging drivers and their characteristics.
First of all, every single person that was convicted for DUI/DWI or “driving under the influence of alcohol and drugs” will be considered as unwanted client for almost all insurance companies. And this is a reasonable attitude. People who were convicted for such offenses do not represent the danger only for themselves, but also for other people and their property. These people will have to pay more for car insurance or, in some extreme cases, their application will be denied for good.
In the same category are people who were convicted for the speed drive, participating in illegal street races, people who were caught driving without driving license or people who were involved in some serious car accidences.
However, not all deserved this infamous title became they did something wrong. All new drivers and all people over 70 will be automatically characterized as high risk drivers, no matter what and they will have to pay more for car insurance. The same situation is with people who have “unusual” vehicles, such as sport and luxury cars.