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Tips to find affordable car insurance for high-risk drivers
The premium on your car insurance depends on how risky the insurance company perceives you and the possibility of filing a claim in the future. Insurers adopt different measures to determine the risks and some of the common factors that determine the car insurance premium include your age, gender, frequency of driving, claims history, and driving experience and history.
If you have a history of traffic infringements or suspended license or made several claims, you may be categorised as high-risk, which can substantially increase the cost of car insurance. The type of car and other factors can also increase your riskiness and impact the car insurance premium.
Can high-risk drivers get insurance cover?
Even if you’re perceived as a high-risk driver, you can still get car insurance cover albeit at a higher premium. While looking for high-risk car insurance in Australia, it’s important to disclose all relevant information about your driving and claims history. If you withhold this information, it may void your cover later.
Different insurers treat high-risk drivers differently. Some insurers may have stricter restrictions and charge higher premiums when compared to other companies. You can consider smaller coverage like a third-party cover only. Getting multiple high-risk car insurance quotes and comparing what is covered and what isn’t is important to make an informed choice.
How to reduce your premium cost?
Check for discounts
Insurers may offer discounts on online policies or if you’ve multiple covers with the same company. If you don’t make a claim, you may receive no claim bonus even if you’re high-risk at the time of buying the policy.
Park your car safely
Reducing the risks of damage or theft by parking your car safely, such as within a garage or carport, may help reduce the premium. You may also buy a car fitted with security and safety devices or install these to reduce the risks.
Opt for higher excess
Excess is the amount you’ll pay in case of a claim and the balance is paid by the insurer. Although choosing higher excess can reduce the premium cost, you need to consider if you can afford to pay this amount in case of an accidental claim.
Consider the coverage
Only third-party coverage is mandatory. If you opt for additional comprehensive coverage, it impacts the premium. Consider other policies like third-party property, fire, and theft coverage, which are more affordable. However, consider what is included and excluded before making your choice.
Consider driving less when possible
Some insurers offer discounts if you don’t use your car regularly, or drive under a certain kilometre cap each year, such as less than 10,000km. Some pay-as-you-go policies allow you to set a kilometre limit and offer lower premium when you don’t exceed it. Choose public or other modes of transportation when possible to reduce driving your car.
How to find cheap car insurance for high-risk drivers?
- When you’ve added demerit point
Car insurance approval depends on the number of points and types of violations. Most insurers accept demerit points from one minor speeding ticket but serious violations can make you ineligible for car insurance. Taking defensive or safety courses may help lower the rates after accumulating points.
- When you’ve been in an accident
If you have a high-risk status due to one or more car accidents, one option to find the most affordable car insurance is to compare policies offered by specialised high-risk car insurance companies. Be honest about accidental history to avoid possible denial of future claims.
- When your coverage has lapsed
If you’re not insured for a longer period, you may pay a higher premium. You can ask your former insurer to reinstate the cover without increasing the premium. You may re-evaluate your cover after six months of safe driving and see if you qualify for a lower premium or get added to a family member’s policy if you live with them.
- When your licence has been suspended
If your license is suspended for a driving-related offence, you may pay a higher premium to insure a car when you legally cannot drive. If you plan to park your car, check if your insurance company is willing to reduce the coverage to a minimum like liability insurance only.
- When you have a drink-driving conviction (DUI)
Some insurers may not be willing to provide you coverage after a DUI, but it is not impossible. The rules related to how long you are considered a high-risk driver after a DUI conviction may vary from one state to another.
For example, some companies may be willing to provide you insurance if you only have one DUI offence. Generally, DUI stays on record for 10 years but in some states, it isn’t removed unless you give limited access or have it removed. You may want to consider taking a safe driving course to boost your chances of approval by the insurer.
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Product database updated 20 Apr, 2024