Insurance companies assess drivers based according to a variety of factors before determining whether they pose a high risk. The greater the likelihood that you’ll be involved at risk of being involved in an accident greater the cost of your insurance will be. There are several reasons why you might be categorized as “high-risk” by insurance companies however, there are some ways to cut down on your insurance costs. Why Am I a High-Risk Driver? It’s usually one or two factors that can cause an individual driver deemed an insurance risky by the company they are insured with. For instance, having a history of several tickets, becoming a new driver or being a victim of an unusually high rate of accidents. For instance, motor vehicle violations like Driving Under the Influence (DUI) can cause drivers to fall in the high-risk class and it could take up to 5 years to be cleared off the driving records. A high-performance car built for racing may cause more expensive rates. The age of the driver and credit score could also play a role. Younger drivers who have no insurance history, as well as older drivers might be considered high risk insurance Toronto for companies. Getting Back to Low-Risk Status Certain high-risk drivers might require some time to clear their prior driving infractions that reduce their rates. However, they can find insurance companies who specialize in these policies. Compare and compare estimates. Ask for discounts, such as bundling your auto and home package. You may be able to get discounts on safe vehicles and lower rates when you insure several vehicles. Contact your agent to find the best price and remember that he’s looking for your company and will work with you to obtain and keep it. A continuation of coverage through the same insurance provider can lower rates. Request a policy change in the event that your motor vehicle violation have been cleared from the driving records (usually 3-years for non-DUI violations). Assigned Risk Pools were created to offer auto insurance to drivers who are at risk. Based on the state in which you reside in, the government will assign you an insurance provider and you can’t shop around , but you will are covered. Certain states require that you submit a form SR22 which confirms your coverage. These ARP’s (Assigned Risk Pools) are for some drivers the only choice to legally travel back and forth to work. Learning defensive driving could lower your insurance rates with some firms and erase points off the driving records. In certain states the place you reside and the location you park your vehicle in the evening can impact your rates. If you reside in a location where there are high accidents rates and a high rate of crime, you may be considered to be high risk by your insurance provider. A deductible that is part of your insurance plan can lower costs, so ask your agent about the most suitable option for your needs. If you’re a younger driver, and you are still living at home, you might be able to join an insurance group under an individual basis, however this isn’t accessible in every state. But, of course, driving safe and with a sense of responsibility is the best method to eventually shed the reputation of being a high-risk driver and save plenty of money in the future.