Car Insurance for High-risk Drivers

A high-risk driver is more likely to apply for an insurance claim than an average or a low-risk one. This causes the insurance companies to be wary of high-risk drivers. Though not as well-defined and established in India at the moment, risk-based analysis of your profile by the car insurance providers is catching on which can make it difficult to secure a good car insurance for high-risk drivers.

Let us first understand what being a high-risk driver means.

Who are High-risk Drivers?

If you have a history of accidents or multiple traffic violations,then you might be categorised as a high-risk driver. Such a driver is more likely to raise insurance claims frequently which makes the insurance provider to bear more expenses.

Given below are some of the factors that can be reviewed by insurance companies for high risk drivers categorisation, to predict the future risk level and to decide your premium amount:

• Driving Record - This can include your history of accidents, speeding tickets, and other traffic violations. So, for those with a bad driving record, insurance can be expensive. 
• Age and Experience - Generally, younger drivers tend to be more accident prone due to their inexperience and relatively higher risk-taking capacity.
• Previous Claims - Frequent claims in the past can suggest a higher likelihood of future claims as well, which in turn can affect your insurance rates.
• Vehicle and Location - A high-end or luxury vehicle would be expensive to repair or replace. Moreover, living in areas where the crime rate is high or where traffic jams are frequent can increase the risk of theft and accident. Both such situations can be deemed to be high-risk by the insurers as they can cost them more.
• Credit History - A low credit score might also increase the risk factor as insurance can be understood as a line of credit and someone with a poor credit history or score is expected to be a less reliable client.

Car Insurance for High-risk Drivers

Though getting car insurance is fairly easy, getting one with good terms and conditions can be daunting for some. Let’s have a look at what getting car insurance for bad drivers entails.

Car Insurance Challenges Faced by High-risk Drivers

Finding affordable car insurance for high risk drivers can take some time and effort. This is so because insurance companies view these drivers as more likely to file claims and are thus vary of offering them coverage at good terms. Below mentioned are the major challenges faced by such drivers while getting a car insurance: 

Higher Premiums

Car insurance for high-risk drivers can come with significantly higher rates than average because of the increased likelihood of them getting into accidents and filing for claims. In addition to higher insurance premiums, insurers may raise deductibles to balance out the risk which can result in you paying more out-of-pocket before your insurance comes into play. 

Limited Coverage Options

Some insurance companies can be reluctant to offer car insurance to high-risk drivers which not only limits your options but also makes it harder to find a policy that fits your needs. Some insurers only agree to offer basic coverage and limit your benefits by excluding features or discounts that other low risk drivers might be able to avail.

Also Read: Best Car Insurance Companies in India

Tips to Get a Good Car Insurance

In order to counter the challenges that a classified high-risk driver may face, there are certain strategies that you can implement to manage and potentially improve your car insurance rates and coverage. Here are some of the tips that can help a high risk driver get a better insurance deal:

• Compare Your Options

Different insurers can have varying criteria to determine the risk-levels. So, it becomes crucial to compare the policies and quotes offered by multiple insurance companies to find the best-suited terms for you. For this, you can also use online comparison tools or use the services of insurance brokers. This way you can explore and compare the options available for you as per your eligibility before deciding on the final one.

• Improve Your Driving Record

Adopting a safer driving practice by following the traffic rules, being alert and conscious of your speed, and maintaining enough distance with other vehicles is one of the most effective ways to improve your driving record. This would also lower your risk profile. You may also opt to take a refresher driving course to brush up your skills and increase the chances of getting good insurance coverage and lower rates.

• Maintain Good Credit Profile

Responsibly handling and repaying your debt can help you improve your credit score and profile which in turn can positively impact your insurance cover options. To do so, you can pay your credit bills on time and in full, clear any outstanding dues, and regularly track your credit profile to make the necessary improvements, as needed. 

• Negotiate

It is recommended that you try to negotiate the terms of the insurance coverage that the provider offers you to get a more favourable deal. You can also inquire about all possible discounts, better rates, and lower premiums with better coverage. You may also request your insurer to lower your premiums once you have improved your driving record.

• Review Your Coverage Regularly

As your risk profile changes with an improved driving record or moving to another area, you can review your insurance coverage. You might be eligible for a better rate or different car insurance policy that is better aligned with your current needs, so a regular policy review can come in handy.

If not chosen well, car insurance for high-risk drivers can be a financial burden. Understanding the factors at play and employing strategies to manage your risk level can make a significant difference. By taking proactive steps to improve your driving habits, maintaining a good credit score, and exploring your options for better rates, you can work towards getting a good car insurance. Getting the right coverage and improving your risk profile can lead to manageable costs and better financial security in the long run. So, despite being a high-risk driver, you can still work towards getting an affordable car insurance with the required features by taking the necessary measures. 

How to Get Car Insurance for High-risk Drivers?

You can compare and buy the most suitable car insurance through InsuranceDekho. Given below are some easy steps to get the best car insurance for high-risk drivers:

Step 1: Click here to reach the form to check the available car insurance policies.
Step 2: Enter your vehicle number and submit to view the insurance plans.
Step 3: Compare the plans as listed and select the one that best meets your needs.

Step 4: Once selected, make the payment online via debit/credit card, UPI or QR code to purchase the plan.

You may be asked to provide some additional details to complete KYC or to submit documents like passport size photographs during the application process.

In case you have any query or require assistance in choosing the right car insurance plan, you may request a call back from an InsuranceDekho advisor by calling on 755 1196 989 or sending an email on support@insurancedekho.com.