Florida Auto Insurance for High Risk Drivers
June 11, 2024
Drivers deemed as high-risk often face higher insurance premiums compared to those considered low-risk. This is because individuals who pose a greater risk could potentially lead to an increase in claims payouts for insurers.
Consequently, insurance companies mitigate this risk by setting higher rates for these drivers. On the other hand, low-risk drivers are perceived by insurers as being less likely to submit claims.
Individuals who maintain clean driving records characterized by minimal traffic violations and a history void of car accidents, find it much easier to obtain affordable car insurance as compared to the challenges faced by those categorized as bad drivers.
Driver history risk factors...
For those whose driving history in the past three to five years includes major convictions will likely be considered by insurance companies as a high risk driver. A conviction for driving under the influence (DUI) or reckless driving can lead to non-renewal of your policy or inclusion in a special rates category. Even though Florida is a No-Fault insurance state, being the at-fault driver in an accident is also grounds for insurance denial or higher-risk auto insurance rates. However, reducing your insurance costs as an often ticketed or at-fault driver is possible with the right approach.
Common High-Risk Driver Categories
Many auto insurance carriers consider a driver to be high risk if they have accumulated too many points or more egregious violations on their Florida’s driving licenses. In some cases, a driver is categorized as a higher risk if they have poor credit scores. Statistics show that newly licensed drivers, such as teens, have the highest accident rates due to their inexperience. Listed below are common culprits for increased auto insurance premiums:
- Drivers with a history of speeding tickets
- Drivers under the age of 25
- Drivers convicted of driving under the influence
- Drivers with citations for reckless driving
- Drivers with low credit scores
- Drivers with at-fault traffic accidents
- Drivers with lapses in auto insurance coverage
- Drivers with distracted driving tickets
- Drivers with ticketed with citation for racing
Some drivers mistakenly believe that after an auto accident in Sunshine State, their premiums cannot increase due to the state’s no-fault status. While premiums generally may not increase after one accident, providers may remove previously allowed discounts. Plus, statistics suggest drivers who have more than one no-fault claim are more likely to file future claims. So depending upon an accident investigation, the insurance policy may not be renewed.
Bad driving record auto insurance
When insurance companies calculate your auto insurance premiums, they closely examine your location, type of vehicle, claims history, and driving record. Among these factors, your driving record holds significant weight and can greatly influence the cost of your coverage. Maintaining a clean driving record is one of the most effective ways to keep your auto insurance premiums affordable. However, if you have a bad driving record of aggressive or inattentive driving, characterized by speeding tickets, minor accidents, or multiple traffic violations, your costs will likely be higher.
What It Means to Be a High-Risk Driver
In most scenarios, high-risk car insurance will cost significantly more than the average annual auto insurance premium. Insurance rates fundamentally hinge on statistics. Drivers categorized as high-risk may find themselves in this group due to a single reason or a combination of many factors, so every speeding ticket, fender bender, and traffic violation can lead to higher costs. These infraction increase the likelihood of filing a claim, so are considered crucial for setting premiums.
According to Florida Statute § 626.9541, insurance companies in Florida are prohibited from raising premiums for liability, personal injury protection, medical payments, or collision coverage solely due to the insured party's involvement in one car accident. However, if a driver is involved in three accidents within three years, regardless of fault, the insurance carrier may cancel the policy. But there is a glimmer of hope in that you don’t have to remain high-risk forever.
It's also important to note that insurance companies assess infractions and risk factors differently. Moreover, some risk factors remain relevant longer than others. Such variables means that the carrier offering the best rates for high-risk drivers in one category may not be the best fit for a driver in another category. Therefore, shopping for high-risk auto insurance through an independent auto insurance broker at Nsurance Nation can be advantageous.
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Everyone makes mistakes. If you currently need to purchase Florida auto insurance for a high-risk driver, it doesn’t necessarily mean you have to pay an exorbitant amount forever. There are several strategies you can employ to reduce your costs for bad driver insurance both immediately and over time as you work to reduce your risk level. At Nsruance Nation, our independent insurance broker can review your current policy and driving record to help you save money on auto premiums.