High Risk Car Insurance
High risk car insurance is a real drag on the wallet and it's all about a driving record and other factors over which the driver may or may not have any control. It's about powerful cars in the hands of young people and seniors that have had few too many fender benders. It's about living in a big city instead of living in the country where the cows roam. And it is about the personal history of auto coverage for the driver over the past few years preceding the need for the high risk car insurance. Fair or not, the higher price of coverage is all about actuarial figures which study the risk and probability of events.
A person doesn't get stuck with this more expensive kind of coverage on just the whim of an insurance carrier. They have the desire to make a profit and keep customers but those are the order of priorities, and profit comes first. So the companies providing auto coverage do the thing that is anathema to politicians and others who might scream bloody murder in any other circumstance. It's called profiling and everyone who has ever been stopped by a roadblock and been given the hard look by law enforcement has been profiled and everyone who has been part of the Nielson ratings study has been profiled. It means that a person has either been compared to a profile, or been arrested or employed because he has fit a certain profile. And as much as we might despise it, the high risk car insurance company could not survive without the marginalizing of demographic groups.
Teens are a higher risk than adults because of their lack of driving experience and males are a higher risk than females according to the accident reports and traffic violations that are recorded each year. The problem with this is that we all have anecdotal proof that this isn't right but the actuarial charts have the statistics. Here's another hard pill to swallow: a bad credit history will pump helium in auto coverage rates. The thinking, fair or unfair, is that carelessness with credit spills over into how one approaches driving. But then again, bad credit can also keep someone from renting an apartment, let alone buy a house so it isn't just the high risk car insurance company. Be very careful not to fall for the subtle philosophy that says all creation on the earth is the same and deserving of the same consideration. The great value of mankind is set forth in scripture: "..."What is man, that thou art mindful of him? or the son of man, that thou visitest him? Thou madest him a little lower than the angels; thou crownedst him with glory and honor and did set him over the works of thy hands." (Hebrews 2: 6b, 7)
If a person lives in an urban setting where people are basically living almost on top of one another and the streets are crowded from city limit to city limit, there is more of a chance for accidents to occur than for Farmer Jones who lives on a back road just north of Nowheresville. One will pay more for the joys of driving in the city than country and one will pay more for the type of car one owns and drives. If a high risk car insurance company has tagged a driver of a beautiful new Porsche with higher rates, sell that thing and get an 83 Hoopty. Rates will go down guaranteed. But if the Hoopty idea isn't real exciting, there are also other things to do to get those costs down.
Oftentimes the reason the high risk car insurance company zaps a person with a high cost policy is because of a DUI or DWI. Check to see if taking a driver's education course or another alcohol related defensive driving course might help in lowering costs. While this may not quickly lower premiums, the class completion may bring about a gradual reduction over the course of a year or more. Getting a vehicle with seatbelt and airbags might help but then that Hoopty may not have those. It's a pickle all right.
Some large insurance companies have recently experimented with monitoring a customer's actual driving habits through the use of electronic tracking using newer auto's onboard diagnostic electronics. This has some real possibilities because then the driver is billed each month for the driving already completed. Factors such as mileage, speed and times of day for motoring are all figured into the cost. Of course this has not become a widespread practice as of yet and worries about Big Brother's nose in personal business have cropped up in the discussion of this particular method, but for some drivers this option offered by a high risk car insurance company may be palatable. The last option is probably the one most drivers will first consider.
When faced with a sudden increase in coverage premiums because of the move to a big city or the purchase of a pocket rocket auto or a DUI or some other abrupt occurrence, there is one quick solution. The driver must lower all of the coverage to the bare minimum. One of the biggest costs a high risk car insurance company has is the comprehensive and collision claims. Removing those could drastically reduce a high risk premium, but if one's car gets T boned, or a fender dinged or any other mishap, or if that tornado takes the car four miles away and is totaled, there is no coverage for repair. Lowering the liability to state minimums will also bring down the cost, but you are the cause of an accident and cause grievous bodily harm to someone else, all your property could suddenly become theirs.
A person doesn't get stuck with this more expensive kind of coverage on just the whim of an insurance carrier. They have the desire to make a profit and keep customers but those are the order of priorities, and profit comes first. So the companies providing auto coverage do the thing that is anathema to politicians and others who might scream bloody murder in any other circumstance. It's called profiling and everyone who has ever been stopped by a roadblock and been given the hard look by law enforcement has been profiled and everyone who has been part of the Nielson ratings study has been profiled. It means that a person has either been compared to a profile, or been arrested or employed because he has fit a certain profile. And as much as we might despise it, the high risk car insurance company could not survive without the marginalizing of demographic groups.
Teens are a higher risk than adults because of their lack of driving experience and males are a higher risk than females according to the accident reports and traffic violations that are recorded each year. The problem with this is that we all have anecdotal proof that this isn't right but the actuarial charts have the statistics. Here's another hard pill to swallow: a bad credit history will pump helium in auto coverage rates. The thinking, fair or unfair, is that carelessness with credit spills over into how one approaches driving. But then again, bad credit can also keep someone from renting an apartment, let alone buy a house so it isn't just the high risk car insurance company. Be very careful not to fall for the subtle philosophy that says all creation on the earth is the same and deserving of the same consideration. The great value of mankind is set forth in scripture: "..."What is man, that thou art mindful of him? or the son of man, that thou visitest him? Thou madest him a little lower than the angels; thou crownedst him with glory and honor and did set him over the works of thy hands." (Hebrews 2: 6b, 7)
If a person lives in an urban setting where people are basically living almost on top of one another and the streets are crowded from city limit to city limit, there is more of a chance for accidents to occur than for Farmer Jones who lives on a back road just north of Nowheresville. One will pay more for the joys of driving in the city than country and one will pay more for the type of car one owns and drives. If a high risk car insurance company has tagged a driver of a beautiful new Porsche with higher rates, sell that thing and get an 83 Hoopty. Rates will go down guaranteed. But if the Hoopty idea isn't real exciting, there are also other things to do to get those costs down.
Oftentimes the reason the high risk car insurance company zaps a person with a high cost policy is because of a DUI or DWI. Check to see if taking a driver's education course or another alcohol related defensive driving course might help in lowering costs. While this may not quickly lower premiums, the class completion may bring about a gradual reduction over the course of a year or more. Getting a vehicle with seatbelt and airbags might help but then that Hoopty may not have those. It's a pickle all right.
Some large insurance companies have recently experimented with monitoring a customer's actual driving habits through the use of electronic tracking using newer auto's onboard diagnostic electronics. This has some real possibilities because then the driver is billed each month for the driving already completed. Factors such as mileage, speed and times of day for motoring are all figured into the cost. Of course this has not become a widespread practice as of yet and worries about Big Brother's nose in personal business have cropped up in the discussion of this particular method, but for some drivers this option offered by a high risk car insurance company may be palatable. The last option is probably the one most drivers will first consider.
When faced with a sudden increase in coverage premiums because of the move to a big city or the purchase of a pocket rocket auto or a DUI or some other abrupt occurrence, there is one quick solution. The driver must lower all of the coverage to the bare minimum. One of the biggest costs a high risk car insurance company has is the comprehensive and collision claims. Removing those could drastically reduce a high risk premium, but if one's car gets T boned, or a fender dinged or any other mishap, or if that tornado takes the car four miles away and is totaled, there is no coverage for repair. Lowering the liability to state minimums will also bring down the cost, but you are the cause of an accident and cause grievous bodily harm to someone else, all your property could suddenly become theirs.
High Risk Car Insurance
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Reviewed by Anonymous
on
1:26 AM
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