Individuals who are classified by insurance companies as "high risk drivers" may find it difficult to get approved for insurance coverage. Insurance companies have the right to refuse coverage to any individual they deem as high risk, as long as that decision has been based on driving records or past actions, and not based on illegal or discriminatory factors.
What Is the Definition of a High Risk Driver?
A high risk driver is an individual that has been deemed by an insurance company to be at a greater risk of involvement in an accident. This higher risk for auto accidents means the individual driver may be a liability to the insurance company. Many insurance companies are uncomfortable with the idea of taking on such a high risk individual and therefore refuse to provide insurance coverage.
What Factors May Determine if a Driver is High Risk?
Each insurance company uses a different software program to analyze facts and information to determine if a driver is defined as high risk. This means a person who is classified as ‘high risk’ at one insurance company and denied coverage may be able to receive coverage from another insurance company because they use different software to base their decision on who is high risk.
Some of the factors that may be used include:
- Previous accidents
- Number of issued speeding tickets
- Type of car that is driven
When Can Insurance Companies Deny Coverage to High Risk Drivers?
Insurance companies have a very limited time frame in which they are allowed to decline coverage to individuals who are considered high risk. An insurance company may decline coverage at the time of the request for an insurance quote.
If an insurance policy has been purchased, the insurance coverage may decline coverage due to an accident or speeding under Texas law within the first 60 days of the policy. However, the reason for the cancelation must be given in writing at least 10 days before the cancelation.
Anyone who believes they may be classified as a high risk driver and may be refused coverage should get several insurance quotes online. Generating several insurance quotes provides the opportunity to compare rates and even find a company that may provide coverage to a high risk driver.