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Who Is A High Risk Driver?

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Insurance providers are in the business of taking risk.
In exchange for a monthly fee, they agree to take on a certain amount of cost in the case that you have an accident.
This agreement means that insurance providers are taking a chance on your behavior and actions behind the wheel, even though they cannot be with you at all times.
In order to determine if they can take on that type of risk, they look for patterns in a driver's history or record.
Some drivers' histories do not instill a great deal of confidence, which means that an insurance company must take a greater risk by insuring these drivers.
This typically results in higher premiums, or monthly prices for insurance holders.
These costs are based on a number of different factors.
If a driver has a long record of traffic violations, especially speeding tickets or reckless driving charges, they may be considered a high risk driver.
An occurrence of a DUI charge, or multiple DUI charges, will also significantly increase your status as a high risk driver.
But violations are not the only concerns.
Age is an important factor in insurance decisions.
Experience can not be taught through a test, it must be gathered.
Because of a lack of experience, new drivers and young drivers may pay higher insurance rates because they are considered a bigger risk than an experienced driver with a clean driving record.
Also, the type of vehicle that is being insured is an important factor in high risk insurance.
If a car has the potential for being badly damaged and may have higher-than-normal repair costs, it may be a high risk for insurance providers.
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