High-risk auto insurance companies make roads safer by providing auto insurance to drivers who would otherwise be unable to obtain coverage. They also save state governments money by keeping drivers out of state-managed assigned risk insurance pools.
Acceptance Criteria
A high-risk insurance company's acceptance criteria are much more lenient than those of a standard company. High-risk companies typically accept drivers with multiple moving violations, accidents and even DUIs.
Coverage Limits
Although each high risk insurance company is different, many of these companies focus on providing only the minimum amount of coverage required by the state.
Premiums
Because its customers have poor driving histories, a high-risk insurance company knows it will pay a disproportionate number of claims. For this reason, coverage premiums are typically far higher than those charged by standard companies.
Coverage Exclusions
High-risk policies typically add numerous coverage exclusions not found in a standard policy. A coverage exclusion is a circumstance when the company will not pay a claim, even if coverage would have been available. For example, a policy may not pay if the driver has an accident while delivering pizza.
SR22s
Many high-risk drivers require SR22s, which are coverage certifications filed with the state. High-risk companies can file these documents on your behalf.
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