Can Good Albany Drivers Be Considered “High Risk” by Auto Insurance Companies?

by | Jun 7, 2013 | Automobiles

No one wants to be considered a high risk driver. This usually translates to high car insurance premiums. When most people hear the term, “high risk”, they think of drivers who have dealt with a lot of speeding tickets or accidents. However, there are several reasons that you could be considered “high risk” by auto insurance companies, even if you’re a good driver. It’s helpful to be aware of these factors when shopping for Auto Insurance Albany.

Age is one reason why good drivers may have to pay more for car insurance. Even though your age isn’t necessarily related to how well you drive, statistics show that the youngest and oldest drivers get in the most accidents. Car insurance companies charge more to insure drivers in these age groups, regardless of clean driving records. These companies couldn’t afford to stay in business if they analyzed the risk of every individual customer. However, excellent drivers who happen to be young can minimize their insurance costs if they use the right agency.

You may also be considered “high risk” by an auto insurance company if you don’t own a home. Since young people aren’t likely to be homeowners, this may seem like a double-whammy to drivers who are already paying a lot for car insurance based on their age. According to statistics, homeowners are more stable individuals, both on and off the road. However, not all car insurance companies use home-ownership status to determine premiums. An insurance agency such as C Callahan Agency Inc. will know where to get the best auto insurance quotes for non-homeowners.

Many car insurance companies also will use your credit score to determine your insurance costs. As it turns out, drivers who are responsible with their credit are also responsible with their cars. Did you know that people with bad credit get into twice as many car accidents as people with good credit? Apparently, those who keep a close eye on their credit reports also keep their eyes on the road. Unfortunately, young drivers who don’t yet have much credit get the short end of the stick. Luckily, if you’re looking for Auto Insurance Albany, a professional insurance agent knows where to find deals, even for young drivers.



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