Insurers decide insurance premiums according to the risk profiling of car insurance applicants. High-risk car insurance can shoot up premiums, but what is high-risk car insurance, and how do insurance companies measure the risk element?
Let us understand the nuances in the following passages.
High-Risk Car Insurance
Some insurers may consider your insurance application a high-risk insurance case after assessing the following factors;
- A history of frequent claims can put you in a high-risk zone and inflate your premium amount.
- Young people (30-35) are less experienced drivers, which may trigger higher premiums.
- Some locations fall into high-risk zones, given the high incidence of thefts and accidents. Car owners from such areas may need to pay higher premiums for high-risk car insurance.
- Some insurance companies consider unmarried people high-risk insurance candidates compared to married people who enjoy lower premium car insurance policy. The logic supporting this view is that married people are financially stable and responsible drivers.