What You Ought to Know about Insurance as a High-risk Driver
Every high-risk driver needs to know whether or not an insurance company can drop them. The answer being yes although it does not happen more often. Insurance policy is canceled if the risk leads to suspension of license where the company waits until the policy is due for renewal. Below are detailed information for high-risk drivers.
First to know is the cancellation of an insurance policy. Normally, you can have a termination of your insurance policy within the first two months. There are numerous reasons for this cancellation one being a misinterpretation. Presenting information in a wrong way when applying could also lead to cancellation. Secondly, it could be as a result of non-compliance. The other reason for the cancellation is non-payment of premiums. An insurance policy can also be canceled when in all claims you are at fault.
The other helpful information for a high-risk driver is non-renewal. Here, an insurance policy drops a driver after the policy period has ended. Reasons for non-renewal are very many but there are those that are unacceptable. Reasons that are not acceptable are like age, race, marital status, color occupation, and even physical handicap. Reasons that cause non-renewal are like having a bad driving record and also driving under influence. Reasons like late payments and non-compliance also cause non-renewal. Non-renewal could also be due to fraudulent claims or maybe being involved in numerous accidents where you are at fault.
As you know all the above, you need to understand who is a high-risk driver is. The first understand of a high-risk driver is one who is at high-risk compared to another driver. It could also be explained as a driver who does not qualify for insurance coverage. You can as well understand high-risk driver as the one who requires a form from the government for them to apply for a car insurance policy. Most of the high-risk drivers do not receive the best rates due to various reasons. When you have a poor credit score, you do not get the best rates. Traffic violation record is another reason. It could also be because you are a teen driver. Not owning a home also as it is believed that you are not stable.
The number of accidents that lead to being dropped is not specific as it depends on the company’s policy. Lastly, you should not be reckless because you are covered as the company can fail to renew the policy. The above are some things to know as a high-risk driver.