Are you shopping for car insurance Orange County CA or just liability auto insurance in California? This is a common practice with many people living in California. Regardless, if you live in Anaheim CA or Moreno Valley CA.
If this sounds like you, then understanding what protection and coverage you need is most important.
You may fall into one of many categories within the automobile insurance industry.
Some of these categories are divided on your driving behavior.
If you find your driving record blemished with tickets and accidents, you may be shopping in a high risk market.
High Risk Car Insurance
This type of niche coverage are for drivers facing high insurance rates because of their driving record and/or type of vehicle.
High risk insurance does not end just because you have a bad driving record.
You may have a clean driving record but have an exotic car that is considered an extremely high risk vehicle.
This means that if that type of vehicle were to be involved in an accident, it would cost companies a small fortune to repair or replace. Not to mention the damage caused compared to less risky vehicles.
For example, if you drive a 911 Porsche, you would definitely fit in this profile.
How to Save Money in a High Risk Market
Savings and protection is on the top of your list, regardless if you are comparing liability quotes or full coverage quotes.
As a high risk driver, you understand the challenge of finding “low cost rates”.
You might have encountered providers or companies who have either denied you coverage. If this has happened you might have received a non renewal form.
In some cases, your existing carrier will just increase your premium due to the risk. This will force you to compare rates elsewhere.
Standard Auto Insurance Coverage
Most standard coverage companies who do not specialize in high risk protection will also use the practice of charging ridiculously high premiums to hopefully deter you.
The reason being is, most providers or companies do not like insuring high risk drivers for the fear they may have to pay out large amounts of money in the event of an accident or claim.
Unfortunately, being labeled in the high risk category does not help your chances of receiving the lowest premium possible.
Liabiltiy Car Insurance Rating Factors
Many factors contribute to needing bad driver coverage or high risk driver protection.
These two terms are one of the same and are often used interchangeably.
One such factor is your driving record.
Regardless if a provider or company goes back three years or one year, you must remember that drinking and driving violations stay on your driving record a lot longer than just a speeding ticket.
Driving Record Factors
Some of these citations or violations include, serious chargeable at fault accidents, major speeding violations.
Some of these type of incidents can be, running a red light or operating your vehicle over the center-line and driving the wrong way on a road will all contribute to a higher rate.
Even if you are purchasing just the minimum or full coverage coverage, it will cost you.
Another factor that can contribute to you needing bad driver coverage or high risk protection is, if you received fines from the courts and did not pay or comply with court orders.
Punishment can range depending on the type of citation.
The reason why failure to pay your court fees and or fines can alter your good driving status is in most cases, your driver’s license will be suspended causing you to lose your “good driving discount” on your policy.
This discount is huge, ranging from 20-30% off your total premium.
A lot of people are unaware that multiple parking violations unpaid, can also render the same outcome, high risk coverage.
Bad Driver Auto Insurance
If you are shopping for liability coverage for a bad driving record and find the rates to be incredibly high for a few unpaid citations.
Keep in mind that some companies not all, base your quotes on your credit score.
These two factors alone, can effect your quotes tremendously.
If you factor in your age, than you can understand how expensive coverage for bad drivers really can be.
Younger drivers will always rate higher, less driving experience means more risk and higher costs, so keep that in mind when looking for the best quotes out there.
Gender Rating Factors
Unfortunately, if you are a male, than you already have a strike against you when comparing quotes.
Men are always rated higher than females in the industry, and this statistical information will reflect as a result in your quotes.
So, if you are a young, male with a bad driving record, than you are definitely going to need to shop coverage that specializes to your market.
- Non standard companies specialize in high risk drivers:
- who may need a SR22 filling,
- have multiple DUI’s,
- too many tickets or accidents
- or are denied coverage indirectly or directly by other standard coverage companies.
Risk and Exposure
As you can see, risk plays a huge part in your rates and premium.
It is determined with many rating factors as we have briefly discussed, and is reason rates fluctuate as much as they do.
When rating factors change, so does your rates.
If you had less then 36 months of driving experience at one point and now you have passed that threshold, then your rating factors have changed.
Rating Factors Change?
Driving experience which is a huge consideration in your premium, can make or break many young drivers. We have all seen it or been there.
You saved really hard to buy that dream car.
Worked all summer long while others enjoyed a life of leisure to find out that when your ready to pick up that new dream vehicle, your coverage payments are more then your actual loan payments on the vehicle.
In this example, you can see how something as driving experience can make or break a new vehicle purchase.
Usually, many new drivers who do not have the driving experience necessary, will opt out to buying a older version of the same car.
This in many ways is a smart approach.
Many vehicle models do not change drastically from one year to the next, but more importantly, the cost factor will not make you a slave to your vehicle.
Basic Liability Insurance Concepts
Let’s look at some of the basic concepts you may find when reviewing your policy. The first is the insured, or who you may be right at this moment.
Most likely, if you are protected to drive a vehicle, then you would be the insured.
An insured is any persona or organization or company or a member or specifically designated by name as the one or ones protected on the coverage policy.
The insurer on the other hand is the provider of coverage.
The party to an coverage arrangement who undertakes to indemnify for any loss, provide pecuniary benefits or render services.
The actual word “insurer” is often used instead of carrier or company.
This is applicable without ambiguity to all types of people or organizations performing functions within the insurance industry.
The word insurer is also used in statutory law. The insurer is the entity you make your premiums to in the event of a loss.
Definition of Loss
The definition of loss in policy language generally refers to the amount of reduction in the value of an insure’s property caused by an insured peril.
The amount sought through an insured’s claim or the amount paid on behalf of an insured under a coverage contract.
Automobile Insurance Exposure
The general definition you may run into while reviewing your policy documents is exposures.
Exposures in the coverage world means everything. It means why people buy coverage in the first place, unexpected exposure.
Exposure defined by industry standard means the state of being subject to loss because of some hazard or contingency.
In addition, it is also used as a measure of the rating units or the premium base of a risk.
Another term found in your policy application is proximate cause.
The effective cause of loss or damage is the result of it.
It is an unbroken chain of cause and effect between the occurrence of an insured person or a negligent act and resulting injury or damage.
This portion of the contract you will find when reviewing your auto policy states the perils insured against.
This information will list persons and or property covered, the location and the period of the contract.
The next areas of discussion is claims.
A claim is a demand made by the insured or the insured’s beneficiary, for payment of the benefits provided by the agreement.
The next areas of coverage is labeled indemnify.
This means to restore the victim of a loss to the same position as before the loss occurred.
This term is an actual formal social device for reducing risk.
This is achieved by transferring the risks of several individual entities to an insurer.
The insurer agrees, for a consideration, to assume, to a specified extent, the losses suffered by the insured.
Any contingent or unknown event.
This is whether it was in the future or past.
This may indemnify a person having an insurable interest or create a liability against the person, insured against, and subject to the provisions of the coverage code.
You do not necessary have to know what each term means, but having a good overview of your policy language is helpful.
Understanding the back-end story of coverage can help explain how it was shaped into what we know today as insurance.
It’s not just a piece of paper or a snap shot of a proof of coverage card, but in reality, it so much more.
This is why it’s important to find an insurance company Orange CA that can walk you though the process if you have questions.
If your new to this process of searching low cost coverage, make sure to always look towards a helpful adviser that can answer any questions you may have.
Normally, your quote compare and search will result in finding providers and agencies who represent dozens of non standard companies not offered directly to the public.
In doing so, make sure when shopping for bad driver coverage or low cost quotes, that the provider will not charge additional fees to make policy changes.
Insurance Online Auto
If you need the state minimum policy and need to add another vehicle to your policy, no fees for this process should be charged, which is why it is important you ask these questions during the quoting process.
This process of finding cheap car insurance, is important regardless if you reside in Orange CA or Huntington Beach California.
So, regardless if you reside in Riverside or Corona CA, if your driving record is less than perfect, you now understand.
This niche market of high risk coverage is our specialty and we work with top notch companies who specialize in this market, which means huge savings to you, the driver!
Call us at 800-962-0085, and speak with a license representative who will compare the cheapest auto insurance Orange County CA or any city within California, for your specific needs!
Service Areas: Los Angeles, Fullerton, Victorville, Orange, Anaheim, Buena Park, Ontario, Fontana, Costa Mesa, Huntington Beach.
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