What is the Eligibility for High Risk California Car Insurance?

Posted on: 11Feb,2016

According the California Department of Motor Vehicles (DMV), statistics show that in the past 10 years, roughly 1.4 million drivers have been convicted for not having proper or sufficient insurance coverage. Plus, an average of 78,000 drivers per year is convicted of not having the minimum liability coverage required by state law.

What is High Risk Car Insurance?

High risk California car insurance was developed for those drivers that insurance companies consider a higher risk based on their past driving history. You will most likely be eligible for this type of California car insurance if your license has been suspended because of:

• Being deemed a negligent driver
• DUI or driving under the influence of alcohol or drugs
• Getting into an accident without proper insurance coverage
• Not having any car insurance
• Violating your probation

Not every California car insurance company offers high risk auto insurance, so you need to do some research when you are shopping around.

What determines being a High Risk Driver?

Where car insurance companies are concerned, there are two types of drivers on the highways and roads today – high risk and low risk. Just as the name of each implies, low risk drivers pose less of a risk to insure while high risk drivers are just the opposite. Aside from the reasons listed above in the prior section, you may also be considered a high risk driver if you:

• Have a poor credit score
• Have been convicted of a DUI (driving under the influence) or DWI (driving while intoxicated)
• Have gotten numerous speeding tickets and traffic violations
• Have had multiple accidents
• Have just gotten your California driver’s license

Although you are probably concerned about the cost of a high risk California car insurance policy, paying more than other drivers do is still better than the consequences you will suffer by not having any insurance at all. If you’re in an accident with an uninsured or underinsured motorist and you yourself have no insurance, hundreds or even thousands of out-of-pocket dollars in damages will have to be paid.

5 Things You need to know about High Risk Car Insurance

Fortunately, high risk California car insurance is readily available through many companies and the cost is not that excessive. However, there are 5 things you need to consider when you are comparing premium rates:

Even if you are considered a high risk driver, you can still get insured – granted, there are always going to be insurance companies that do not offer high risk insurance. Fortunately, a number of insurance carriers today offer this type of coverage which is sometimes referred to as “non-standard auto insurance.”

Make sure you compare several insurance companies – you shop around when it comes to making major purchases and auto insurance is no exception. You should compare at least a half dozen companies to make sure you have all your options covered. There is always going to be companies that sell cheap insurance, but in most cases the company is not that reputable or the coverage is too minimal for your personal needs.
SR-22 is an insurance form, not a type of insurance – many individuals today make the mistake of thinking that SR-22 is a type of insurance when in reality it is not. It is a form that your insurance company will file with the California DMV when you have met the state’s minimum financial responsibility requirements.

You can still find affordable and flexible high risk California car insurance – don’t get discouraged when you are shopping for high risk auto insurance. Even though you have been labeled as a high risk driver, there are a number of companies that will understand your current financial situation and offer you more affordable premium rates. In most cases, these companies will allow you to tailor a payment plan that fits your monthly budget and pay schedule at your job.

You don’t have to be categorized as a high risk driver permanently – even though you may have made a few poor choices in the past, but that doesn’t mean that you are scarred for life. Fortunately, your insurance company will be able to help you out by suggesting how to clean up your driving record and be able to pay less for auto insurance in the future.