Things to Know as a High-risk Driver
One of the questions that all high-risk should ask themselves is, can an insurance company drop you? The answer to this question is that it is possible of which it does not happen often. Insurance policy is canceled if the risk leads to suspension of license where the company waits until the policy is due for renewal. Read on for more information concerning high-risk drivers.
Cancellation of the policy is one basic thing for any high-risk driver. The policy is normally terminated before the policy period ends and within the first two months. Interpreting wrongly is among the many reasons that could lead to cancellation of your policy. The other reason could be as a result of the wrongful presentation of information during application. Non-compliance is another reason for cancellation of an insurance policy. You can also have your insurance policy canceled if you do not pay your premiums. When you are at fault in every claim, it can lead to cancellation of an insurance policy.
Non-renewal is another thing very important to know about non-renewal. Non-renewal being where an insurance provider drops you when the policy period is over. Reasons for non-renewal are very many but there are those that are unacceptable. Among those that are unacceptable are age, race, marital status, color occupation as well as physical handicap. A driver with a bad driving record and may be driving under influence are some of the reasons for non-renewal. The other reasons are like non-compliance as well as late payments. Non-renewal could also be due to fraudulent claims or maybe being involved in numerous accidents where you are at fault.
Apart from the above-discussed information, you should also know who a high-risk driver is. One of the explanations is a driver who is at high-risk in comparison to another driver. Another explanation is one who is not in a position to receive insurance coverage. It can also be understood as one who can only apply for car insurance after getting a certain form from the government. High-risk drivers do not get the best rates mostly because of many reasons. When you have a poor credit score, you do not get the best rates. It could also be as a result of traffic violation record. It could also be because you are a teen driver. It could also be because you do not own a home that is an indication of stability.
Accidents that cause a company to drop you are not specified since the company’s policy will determine this. You cannot have your policy renewed if you are not careful. The above are some things to know as a high-risk driver.