Being placed in a high risk or “non-standard” car insurance market can happen for many reasons. A combination of how many years you’ve been licensed, insurance payment history, claims record, and traffic convictions can place you in a high-risk market.
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Who is classified as a high risk driver?
What does it mean to be placed in a high risk market?
Being placed in a high risk car insurance market usually means that your yearly insurance price will be higher and may need to be paid up-front. It can also mean you pay more out-of-pocket if you are in an accident or that you are offered less options for coverage.
Cheep Insurance offers monthly payment plans for high risk insurance policies, and we specialize in getting high-risk drivers back to a “regular market” as soon as possible.
How long are you considered a high risk driver?
Payment Problems
Cancellations of past insurance policies for non-payment of premiums can place you in a high risk market for 3-6 years
Driving under the influence
Driving while under the influence of drugs or alcohol will require a high risk policy for 10+ years
Driving with no insurance
No-Insurance tickets will require an FRC and impact your insurance eligibility and price for at least 3 years.
Tickets & Convictions
Traffic convictions can be minor, major, or criminal. Depending on the severity and frequency of tickets, you can be placed in a high risk market for 3-10 years.
At-Fault Accidents
Every at-fault accident can impact your insurance for up to 6 years.
Getting out of a high risk market.
If your driving or payment record has you placed in a high risk car insurance policy, Cheep Insurance will help you get back on the right track. We offer insurance with dignity for everyone – no judgement. Things that can help you get back to a “regular market” company can include:
- Following the rules of the road: If you follow the rules of the road, you won’t get tickets or convictions. Follow the speed limit, wear your seatbelt, and don’t drive impaired.
- Take a defensive driving course: If you are newly licensed, taking a defensive driving course can decrease your insurance price by hundreds of dollars, and provide more options for coverage.
- Pay your insurance on time: High risk markets come with high prices, so this can be difficult. We’re here to make your payment plan as flexible as possible – reducing missed payments, and eliminating non-payment cancellations.
Frequently Asked Questions.
How much does my insurance go up after a DUI?
Many insurance companies will not offer a new policy to someone who has had a DUI in the past 3-5 years. This means that you will only have a couple of insurance companies to choose from, and their prices are probably going to be quite high. Since prices vary based on your other personal details, there’s not a set amount or percentage your policy will go up by because you have a DUI. You will need to call an insurance broker to get a quote.
The good news is that Cheep Insurance works with almost all of the insurance companies in Nova Scotia, so we can insure you no matter what your driving history looks like. Depending on how recently you received your DUI, or if you’ve also had other convictions or accidents, you may only be eligible for a policy through the Facility Association. The Facility Association offers high-risk car insurance for drivers with any combination of convictions, accidents, or license suspensions on their record, which make them ineligible for other insurance policies. The other good news is that Cheep Insurance has some of the most flexible payment plans, and can offer a monthly payment plan even if you’ve had previous cancellations.
How do I set up insurance after my DUI?
If you have an impaired driving conviction and you’re looking to set up an insurance policy, give us a call at 1-866-922-4337 or request a quote online and we’d be happy to put together a quote for you!
What is an FRC?
A “Financial Responsibility Certificate”, or FRC, lets the DMV (Department of Motor Vehicles) know that you have an active insurance policy in place so they can reinstate your license and you can get back to driving. It serves as proof that you have enough funds to cover any damages or liabilities that may arise from an accident. Because it is meant to show financial responsibility, you will want to make sure you are paying your insurance premiums and other bills on time, otherwise you may run into other issues such as a cancellation for non-payment.
FRCs are required if you are charged with driving without insurance. Once you are convicted of driving without insurance, your license will be suspended. When your license is suspended, you need an FRC to get back on the road. Get in touch with our team by phone at 1-866-92-CHEEP or by email at [email protected] and we’ll take care of everything for you.
For more information on FRCs – see our blog post “I got a no insurance ticket and now I need an FRC – help!”
How long does an accident stay on my record?
How a car accident affects your insurance record depends on a few different details.
- At-Fault Accidents – At-fault accidents do affect your insurance and will likely increase your insurance premium on your next renewal. You can be found partially or fully at fault for vehicle collisions, and they stay on your record for approximately 6 years from the “date of loss” reported. These claims may also affect your ability to change insurance carriers.
- Not At-Fault Accidents – If you are in a vehicle collision and it is determined that another person is at fault, the accident will not be held as a mark against you on your insurance, will not increase your premium, and will not prevent you from getting insurance with another company.
- Comprehensive Claims – Comprehensive claims include fire, vandalism, theft, collision with wildlife, and if you break your windshield. Because these incidents are often beyond your control, they do not affect your insurance record and are not marked against you. Claims resulting from these perils will not increase your insurance premium or ability to change companies – however, if you have frequent glass claims, your insurance company may opt to discontinue your glass coverage.
How many Claims and Convictions can be on my Record before I am considered high risk?
When it comes to determining if a driver is high-risk, the number of claims and convictions allowed on your driving record can vary depending on the Insurance Company and their guidelines. Different insurance companies have different rules. Having multiple claims or convictions can increase your risk level, making you more likely to be considered high-risk.
While there isn’t an exact number that determines high-risk status, accumulating a history of multiple claims or serious convictions can put you in that category. It’s important to fly straight and follow the rules of the road.
If you’re worried about your driving record and being labeled high-risk, it’s best to talk to an insurance professional. They can give you guidance based on your specific situation and help you navigate through the insurance process. Our licensed Brokers understand the when and how of Insurance Renewals and underwriting, and can work with you to find a solution if your current Insurance provider non-renews or cancels your policy due to a number of tickets or claims.
Of course, if you do get a ticket, make sure to pay any fines in a timely manner to ensure matters don’t get worse.
Most policies insured with Cheep Insurance are Agency Bill/IFS financed policies. You can determine who manages your payments by following the directions below. If you are still not sure who manages your payments, call our team as funds paid directly to the insurance company when they should go to IFS will cause large delays.