High-risk drivers drivers who are young and new to driving, with low credit scores, coverage lapses, or multiple violations on their driving records. This includes multiple accidents, multiple speeding tickets, and a DUI.
In 2019, North Carolina had an average death rate of 14.02 per 100,000 people. This is significantly higher than the national average. 18.8% of those deaths were due to distracted driving, 25% to drunken driving, and 27% to speeding. This is a lot of risky behavior that can lead to higher premiums for insurance companies.
North Carolina rates for high-risk auto insurance
There are many reasons why a driver could be deemed high-risk. However, some factors have a greater impact on your premium. For example, a DUI is more alarming than a low credit score.
Take note of the premium paid before and after each risk factor. You’ll notice that some companies are more accommodating than others. It takes some research to find the best high-risk car insurance in North Carolina.
Rates for speeding tickets
While you will most likely notice an increase in your premium following a speeding ticket conviction, the severity of that ticket and your driving record are important factors. These numbers are an average increase. You could pay less or more.
Geico, for example, may offer lower rates to new drivers but they seem to be charging more to risky-drivers for their car insurance. Before you shop for rates, take into account your driving record before you choose a company.
Rates for an accident
Insurance companies will charge drivers at fault for an accident more as it means they might have to cover future claims. A minor fender bender will not increase your premium as much than an accident that results in serious property damage or medical injuries.
Notice the difference between the before and after scenarios. Companies that are usually less expensive are more likely to forgive an accident than those that are more costly.
Rates for DUI
Some companies won’t allow drivers to renew their insurance after a DUI conviction. They may also terminate their policy. You may be required to file an SR-22 and FR-44 with the DMV in addition to having to pay more for car insurance. These are not special types of insurance. This is a common misconception. SR-22s or FR-44s do not prove to the state that you are properly insure.
The percentage differences above do not guarantee that these companies will continue to cover you if your DUI conviction is a reality. The increase could be much higher if you have several other convictions on your record in addition to a DUI.
Teen drivers: Rate
Because teens have less driving experience, they are more likely to be considered dangerous than their parents. IIHS discovered that 7% of road deaths were caused by teenagers in 2019. 57% of teenager deaths occurred while another teenager was driving.
Parents and teens can’t do much to reduce their premium. However, they can shop around and find discounts.
Who are high-risk drivers?
High-risk drivers are those who are likely to file a claim in future. Drivers are classified as “risky” by these factors:
- Multiple speeding tickets
- At-fault accidents
- Credit score low
- Convictions for DUI
- Coverage gaps
- High-risk areas are a good place to live or work.
- Not a FR-44 or SR-22?
A high-risk driver is someone who cannot get coverage through their preferred carrier. This is the industry definition. This may be true but it does not reflect the whole picture. While you may continue to receive coverage, you could pay substantially more.
How to lower your rate for high-risk drivers
Insurance for high-risk drivers can be more expensive, but there are still ways to save.
- Your deductible should be increased: An increase in your deductible will reduce the amount of money that you receive after a claim. However, it will also lower the amount you are liable for each month. There are many deductible options available from insurance companies. However, you need to understand what it means if you file for a claim.
- An older car is cheaper to insure as they are less expensive to replace. You can save money by replacing your car with a reliable, safe used vehicle.
- Compare providers: You can see that some companies are more accommodating than others. Do not assume that you will be charged the same amount for every policy with every provider.
- Compare discounts: Discounts can help you save serious money, but it’s important to find the best deal. There are many companies that offer similar discounts. Some companies offer greater savings than others, but they all offer the same discounts.
Questions frequently asked
Is it more expensive to insure a sports car?
There are a few reasons why yes.
- It is expensive to replace them and repair them.
- They are more susceptible to being stolen
- These cars’ drivers are more likely to speed than normal and cause accidents.
Simply put, a sports car driver is more likely to file a claim than a driver without insurance. This is why drivers with clean records may need to look for high-risk coverage in North Carolina.
What cars are the most affordable to insure?
A car with a high safety rating is desirable and one that isn’t easily stolen. IIHS recommends both sedans and hatchbacks.