LOS ANGELES, CA / ACCESSWIRE / July 17, 2019 / Compare-autoinsurance.org has launched a new blog post that explains the reasons why car insurance companies classify drivers.
For more info and free car insurance quotes, visit https://compare-autoinsurance.org/how-car-insurance-companies-classify-drivers/
Before granting coverage to someone, car insurance companies will determine that person's risk profile. The risk profile is determined with the help of the information provided by the potential customer. Providing false or inaccurate information will be penalized by insurers. The penalties range from increased premiums to policy cancelation.
Insurance companies will classify drivers in the following risk profiles:
- Preferred risk. Drivers from this category pay the lowest insurance rates and have a spotless driving record. Preferred drivers can negotiate better insurance prices and they can easily switch their current insurers to another one that possibly has better insurance rates. To be classified as preferred risk, drivers will need to have a clean driving record, excellent or very good credit score, and minimal or zero claim history. Furthermore, drivers that access higher liability limits are considered to be a preferred risk.
- Standard risk. A standard risk driver can be promoted to preferred risk or downgraded to high-risk. Most standard-risk drivers only need to fix one or two things before being promoted to preferred risk. In most cases, standard risk drivers have one or two minor traffic violations, a maximum of one at-fault accident, good credit score and at least a previous 6 months of insurance coverage.
- High-risk. This category is usually reserved for the worst drivers. To get car insurance, high-risk drivers will need to work with non-standard carriers. The car insurance rates paid by this category are the highest. Generally, drivers that are classified in this category are usually persons with zero or very little driving experience, a poor credit score, and an increased chance for committing traffic violations. Drivers that are convicted for DUI/DWI will be immediately placed in this category. Also, new drivers that have no previous coverage history are placed in this category.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/
Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.
"Before getting coverage from the insurers, drivers will be classified in different risk profiles. Safe drivers will be rewarded with lower insurance rates",
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