Things to Know as a High-risk Driver
What most drivers should ask themselves is if it is possible for an insurance company to drop them. The answer being yes although it does not happen more often. Your policy is canceled by the insurance provider when the risk causes the suspension of your driver’s license although the company must wait 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. Normally, you can have a termination of your insurance policy within the first two months. The first reason for the cancellation could be due to misinterpretation. Presenting information in a wrong way when applying could also lead to cancellation. The other reason for cancellation of your insurance policy is non-compliance. 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. 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. Age, race, marital status, color occupation, and physical handicap are not acceptable. Acceptable reasons include bad driving records and driving under influence. Reasons like late payments and non-compliance also cause non-renewal. Other reasons are fraudulent claims as well as too many accidents of which you are at fault.
Apart from the above-discussed information, you should also know who 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. It can also be understood as one who can only apply for car insurance after getting a certain form from the government. There are numerous reasons as to why these drivers do not get the best rates. It could be one, because of a poor credit score. The other reason being traffic violation record. You do not get the best rates also if 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. You cannot have your policy renewed if you are not careful. The above are some things to know as a high-risk driver.
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