A Simple Mistake Could Make You a ‘High-Risk’ Driver in the Eyes of Car Insurance Companies
Daniel Rooney
· 3 min read
If money is tight or you’re working towards a savings goal, you might look at your recurring expenses to see what you can save on. Many people skip over
car insurance
. You might not want to deal with the hassle of comparison shopping, but this means you can miss out on potentially cheaper alternatives
. If you don’t consider what goes into your insurance coverage rates, you won’t know how you can improve your driver’s profile to get cheaper rates. Many drivers make simple mistakes that automatically make insurers think of them as high-risk drivers. One mistake, in particular, can have a substantial impact on how much you pay for car insurance.
How are your car insurance costs determined?
Your car insurance rates are based on how risky you are as a driver. Insurance companies assume that high-risk drivers will file multiple potentially expensive claims, so these drivers pay the highest premiums.
Insurers determine whether a driver is high-risk based, in part, on demographic trend data. For example, drivers under 25 are more likely to get into accidents, so they pay more for car insurance coverage.
Companies also look at your driving record. Drivers who routinely receive tickets for violating traffic laws will have higher premiums. A serious offense, such as
a DUI
, signals to insurers that you are a risky driver and leads to higher premiums.Other seemingly insignificant factors increase your perceived risk in the eyes of insurers—one of them is easy to change and heavily impacts your premiums.
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A small factor with a big impact on insurance costs
One of the most overlooked factors that make you a riskier driver to insurance companies is lapsed insurance coverage. By law, you must be insured when you drive. Even a tiny gap in coverage can cost you big time, according to
Kelley Blue Book
. You might have simply been trying to find a better deal when renewal time came around, but insurers will see you as a bigger liability. Make sure you're covered all the time, even if you don't have the rate you want. It’ll be even more costly to be caught
driving with no insurance
.Among other factors, companies consider the vehicle you’re trying to insure when deciding your rate. Newer,
more expensive cars
, especially those with poor safety ratings and few safety features, will cost you more to insure. Consider these costs carefully before you make a new car purchase
. How to ensure you have affordable and continuous coverage
Automatically renewing coverage protects you from legal consequences, but you might be worried that you don’t have the best coverage available. If the premiums are too high and you need more coverage, waiting until the renewal period can be difficult.
It can also be challenging to sift through all the options trying to find the best possible coverage at an affordable price. You might’ve accidentally let your coverage lapse because you couldn’t find what you needed in time.
That's where
Jerry
can help. The free AI-powered app can quickly collect coverage rates from the 45 most popular insurance providers and help you find the best rates for the kind of coverage you need. When renewal time comes, Jerry will provide you with a refreshed list with any changes in rates, so you’ll always be able to compare the most affordable options. Jerry will help you feel confident with your insurance rates so you don’t have to risk having a gap in coverage.
