Characteristics of a preferred risk driver:
Age 25 or older Clean driving record Minimal not-at-fault claims Good insurance credit score Homeowner Prior to six months of insurance with liability limits of 100/300 or higher
Most of the preferred driver characteristics are self-explanatory. However, it may surprise you to see your prior liability limits factor into your driving status. Insurance companies prefer clients to carry liability limits of 100/300 or higher because it is the best protection against lawsuits. Opting for your state’s minimal liability coverage usually reflects poorly on you as a driving risk. Characteristics of a standard risk driver:
One or two minor traffic violationsNo more than one at-fault accidentAverage insurance credit scorePrior to six months of insurance
If you are a standard risk driver, it is still possible to get a reasonable insurance rate, especially if you excel in one area of the characteristics. For example, a standard risk driver with one traffic violation can still get an excellent rate if they have perfect credit. Or, if a standard risk driver’s credit isn’t the best, a clean driving record can save the day. It’s a combination of nicks on your record that put you into an undesirable price point. Characteristics of a high-risk driver:
Major traffic violationCombination of at-fault accidents and ticketsNo prior insuranceTerrible insurance credit score
A low credit score does not exclude you from a preferred or standard insurance carrier, however, the rate increase for a low insurance credit score can be so high it is included as a characteristic of the high-risk tier. The lower your credit the higher your risk and rate, but not every company uses credit as a factor in determining your risk. Your credit rating is included because it is becoming so common among insurance carriers. Changes in your driving status can happen at any time. Knowing what affects your insurance risk will help put you in control of your insurance rate. Focus on your driving record and credit score while maintaining continuous coverage at all times to get you to the preferred driver risk level.
