In determining who drivers are ” high-risk“, insurance companies take into account many factors. Bankrate considers some of these factors, including car accidents, speeding tickets and teens, when determining high-risk drivers.
High-risk drivers have a higher likelihood of generating claims due to injuries and accidents, including fatalities. South Dakota had 88 fatal car crashes in 2019, which led to 104 deaths. That year, 11.5 of 100,000 South Dakotans were killed in car crashes. This was slightly more than the 11 deaths per 100,000 in the United States.
South Dakota rates for high-risk auto insurance
You may want to research the best insurance companies in South Dakota if you’re a high-risk driver. This article will discuss the factors that are most likely to have an impact on your coverage, and premium options. This includes a DUI, a speeding ticket, an accident, or series of accidents, and whether your rates are affected by your age, particularly if you’re a teenager.
Rates for speeding tickets
Your average annual premium for auto insurance will increase if you are cited in South Dakota for speeding. This can vary greatly depending on which carrier you use, as shown in the chart below. A single speeding ticket will not result in an increase of 4% in your car insurance premium. American Family may, however, see their annual average premium rise 68%.
You can expect premiums to rise more depending on how serious the speeding offense was or if there are multiple speeding tickets. In South Dakota, there are two types of speeding violations. You can be ticketed if you exceed the posted speed limit. You could be charged with “Basic Speeding” if you exceed the posted speed limit. Fines range from $87.50 up to $220.50 depending on the severity of your violations. However, these amounts can be doubled if the violation is in a construction zone.
Rates for an accident
Car insurance companies may also consider a history of accidents as a high-risk driver. Depending on the carrier, accidents can also impact premiums in different ways.
South Dakota is a relative negligence state in order to allocate responsibility among accident victims. This means that South Dakota law will determine who is responsible for an accident. Even if you are slightly responsible, you will still receive compensation from other drivers. However, the amount will be lower. The severity of an accident or series of accidents can increase insurance company premiums.
Rates for DUI
An DUI can have a significant impact on your car insurance premiums. The chart below shows that rates can triple with North Star Mutual, at least one carrier. While other carriers may offer lower premiums, it is worth noting that DUI’s can have a significant impact on your car insurance prospects depending on the severity of the charges and whether there has been a series.
Insurance companies may not renew policies if they find out that the driver was convicted of DUI. However, in certain states it is illegal to cancel an insurance policy. South Dakota also has additional penalties for DUI convictions. Drivers convicted of DUI or other serious offenses that lead to license suspension must show financial responsibility by having their insurance company file a Form SR22 with South Dakota. While this is true for most states, it is not required in some states, such as Virginia .
Teen drivers: Rate
Most car insurance companies consider teens drivers “high-risk” because they believe that less experience driving leads to more accidents. Statistics back this conclusion, as teens are involved in a large number of fatal accidents.
Premiums for drivers younger than 20 years old are usually high to address this higher risk. Parents are often able to put drivers younger than 18 on their policies. Although it increases the cost of the policies, it also avoids the high cost of teenagers insuring themselves. The 18- and 19-year-olds pay the highest premiums . After that, premiums decrease and level off once a driver reaches 25.
Who are high-risk drivers?
Insurance companies use different definitions to define high-risk drivers. Insurance companies consider many factors, beyond applicants’ driving records. Insurance companies will look at the vehicle to assess its safety features and reviews, as well as the location of the car in order to determine the likelihood of crime. Some insurers may also review the credit history of a driver to determine if they are committing a pattern.
This article is purely about characteristics of drivers such as age and past driving events. All drivers will have an effect on their coverage and premiums, regardless of whether they are convicted of speeding or causing an accident.
How to lower your rate for high-risk drivers
You can certainly improve your driving record and help you move out of high-risk status. These practices, for example, can help you move in the right direction.
- Do not make matters worse by violating additional traffic laws.
- Practice defensive driving.
- Talk to your insurance company and find out if you are eligible for driving lessons that will increase your chances of getting approved.
- You might consider trading in your car for one that has more safety features.
Questions frequently asked
Which insurance company is best for high-risk drivers and their vehicles?
Although most insurance companies will cover high risk drivers, some cases can prove prohibitive. Get quotes from multiple car insurance companies that specialize in high-risk drivers to find the right company. Compare to find the best policy for you.
What is the maximum time I am considered high-risk?
It will depend on the factors that placed you in the high risk category, as well as the carrier practices. If your violations are minor, however, it’s possible to get rid of the high-risk classification within a short time. However, repeating serious traffic violations and coverage lapses may extend the high-risk period indefinitely.
What age is the best time to get car insurance?
The most costly drivers to insure are those under the age of 20. Statistics show that driving habits and experience improve over time, so premiums begin to decline after teen years and then level off around 25. Rates decrease until drivers turn 70, when rates increase again.
