Have the Right Paperwork to Avoid SR-22 Risks

Driving safely is about more than being careful behind the wheel. It also means that you have to have the proper qualifications to operate a vehicle.

Every state has rigorous licensing, registration and insurance requirements. Failing to get the correct qualifications may cause your state to label you as a high-risk driver. A high-risk classification may require an SR-22 certificate for your auto insurance. Drivers don’t want to get SR-22 files, as these may negatively impact the driver’s insurance coverage.

Why States Require SR-22s for Lack of Qualifications

If you don’t have the right qualifications, it may signal that you cannot drive in a trustworthy manner. Less trustworthy drivers may pose higher operating risks. These risks may lead the state to require you to prove you have active auto insurance. A strong auto insurance policy might reduce risks that high-risk drivers pose on the road.

To prove that you have auto insurance, your state may require you to get an SR-22 certificate. These certificates come from your auto insurer, and verify that you have coverage. SR-22 certificates might remain on your driving record for a couple of years, depending on your state.

Avoiding SR-22s Is Always Best

If your state requires you to get an SR-22, this often signals to your auto insurer that you are a high-risk driver. As a result, it may discontinue your coverage or increase your policy prices.

States may impose SR-22 requirements for qualification violations like driving without insurance or failing to carry proper licensing. It is imperative that all drivers maintain their driving qualifications at all times.

  • Have an active, un-expired driver’s license with you at all times. Update or renew your license on time. Make adjustments to your license information or classifications any time you experience a change in driving circumstances. Do not drive with a suspended or expired license.
  • Carry up-to-date registration and plates on your vehicle. Each state requires registration renewal through different processes. Familiarize yourself with your states laws, and do not miss a renewal deadline.
  • Always carry effective auto insurance. Driving without the proper insurance can frequently lead to SR-22 requirements. Most states require auto insurance coverage for most drivers. Make sure your policy meets all state requirements.

Before you hit the road, have the right qualifications to drive. It may help the authorities determine you are a safe driver.

Call Amigo Insurance Agency, Inc at 877-999-2644 today for help getting a fast, free Chicago auto insurance policy quote.

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Why You Might Need Non-Standard Auto Insurance

When looking for auto insurance, your insurer may classify you as a non-standard policyholder. What is this term? What makes you a non-standard driver?

Non-standard auto insurance applies to certain drivers who are riskier to insure. Different companies classify different drivers as non-standard. Some companies may not insure them at all.

If you find out that you’re a non-standard driver, talk to one of our auto insurance agents. They can help you determine why you fall into this category, and determine the best way to insure you. With the right attention, you can hit the road knowing that you have the right coverage.

What is Non-Standard Insurance?

There is no concrete definition for non-standard auto coverage. Most companies classify non-standard policyholders as those who are the riskiest to insure.

Because these drivers come with higher risks, companies account for those risks when insuring them. Companies likely cannot insure non-standard drivers at the standard market rates for insurance. Non-standard drivers may pay more for their coverage because of their unique risks.

Different auto insurers consider drivers non-standard for a variety of reasons. A driver might become non-standard because of their driving record, age, vehicle or other factors.

Choose an insurance company that will insure you for any non-standard risks. There are many fairly common reasons that a driver might qualify as non-standard. Your insurance agent can help you choose the correct policy for your needs.

Coverage for New Drivers

When someone begins to drive for the first time, they don’t have the experience of a seasoned driver. For that reason, new drivers are often considered non-standard policyholders.

New drivers usually pose a relatively high cost risk to their insurers. Insurers may recommend that new drivers buy higher levels of insurance coverage in the beginning. This helps to better cover the insured’s cost risks. These factors might make new drivers have to pay higher costs for coverage.

The good news is that new drivers can often reduce their coverage limits over time. Furthermore, as drivers gain more experience, their risk level usually drops. As risks drop, you might be able to reduce your coverage levels, and therefore pay less for coverage.

High-Risk Drivers

Experience driving makes drivers safer and more attentive to their on-road risks. However, some drivers continue to make mistakes. If you continually commit driving infractions, you may tarnish your driving record. Frequent accidents, tickets or other violations will often stay on your driving record for a few years.

Insurance companies have access to most of their policyholders’ driving records. If insurers see your driving record gain citations, they might classify you as a high-risk driver. High-risk drivers often qualify as non-standard drivers. Therefore, you might pay more for insurance the higher risk you pose to insurers.

SR-22 Insurance

Your state may require you to get an SR-22 certificate for a variety of driving infractions. These include DUI/DWI charges, multiple tickets, or frequent accidents. Therefore, SR-22 insurance usually falls under both non-standard and high-risk insurance coverage.

SR-22s are not insurance policies themselves. They are certificates that classify you as a high-risk driver. They verify for your state’s authorities that you carry adequate auto insurance. You may have to carry the SR-22 for a couple of years. You must carry continuous auto insurance coverage while you have the citation.

SR-22s may cause your auto insurance rates to rise. You may even have to change policies because your existing policy may not cover SR-22 risks. Therefore, you might expect to pay more for coverage with an SR-22 policy.

After an SR-22 comes off your record, you might see a chance to reclassify yourself as a standard driver. This could help lower your insurance rates.

Non-Standard Vehicle Coverage

Sometimes, the car you drive can classify you as a non-standard driver.

An old car that you take to car shows often has a lot of value attached to it. The same goes for an extremely expensive, custom-made vehicle like a Lamborghini. Antique, valuable or specialty cars often need unique coverage levels. This is perhaps because of their age, design or operational risks.

Furthermore, high-risk vehicles don’t have to be the most valuable. For example, salvage-title cars are those that were previously damaged and considered a total loss. Though you might have repaired this vehicle, it still has major damage in its past. This makes its operation quite risky.

Whether new, old or repaired, you vehicle might contain risks that make it riskier to insure. For that reason, your auto insurance provider may need to issue a non-standard policy.

Affording Non-standard Coverage

Even if you have to pay more for a non-standard policy, there are ways you can control your costs.

Drivers might be able to save on coverage if they qualify for discounts from their insurer. Multiple insurers offer a variety of discounts like accident-free or safe-driver discounts.

Safe driving and attention to your car could help you become less risky in the eyes of your insurance. They might reduce your rates the longer you go without an infraction.

We’ve got you covered. Call Amigo Insurance Agency, Inc at 877-999-2644 to get a free quote on Chicago auto insurance.

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If you have any questions about a current policy, submitting a quote online, or prefer to get a quote over the phone, our agents are ready to help.

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Who are the Highest-Risk Drivers?

Experience, age, vehicles, restrictions and your driving history all collectively determine your risks. Your auto insurance provider will use that risk to determine how to provide coverage for you.

High-risk drivers present the highest cost risks to insurers. An insurance company assumes high chances of issuing a claim when insuring that driver.

When an insurance company issues a claim, it costs the company money. So, insurers often have to charge high-risk policyholders more for their coverage. One way to avoid paying higher prices is to reduce your chances of becoming a high-risk driver.

What are some of the common examples of high-risk drivers, and how do you insure yourself if you become one?

Determining Which Drivers are High-Risk

Most insurance companies determine who is a high risk driver differently. Some might use your credit score as a factor, while others will use your age. Almost all of them will use your driving history as a risk factor.

Nonetheless, there are still various drivers that most insurance companies consider high-risk. If you fall into one of these categories, you might pay more for your insurance coverage.

New or Teen Drivers

Many people lump new and teen drivers into one high-risk category. However, these two groups are not always the same.

A new driver can be anyone who recently learned to drive. There is no age limit. These drivers do not have the experience of seasoned drivers. Therefore, they pose a higher risk of accidents and other hazards on the road. As experience increases, a driver’s risk may decrease, and an insurance company may lower a driver’s rates.

Since most teen drivers are new drivers, they usually face most of the same risks. Research also shows that teen drivers are more likely than older drivers to have accidents or commit driving violations. Their risk level is often compounded because of their age.

Older Drivers

Like teen drivers, older drivers also face a higher risk while driving. Age might begin to impact faculties like vision, reflexes and concentration. This may cause insurers to classify older drivers as high-risk.

Uninsured Drivers

Most drivers in the U.S. have to carry auto insurance. Most states set minimum insurance coverage limits that all drivers have to carry. If you fail to carry your state’s minimum insurance, you could face financial penalties.

Since going without insurance is illegal, drivers should not let their policies lapse. If you fail to carry insurance, many insurance companies will classify you as a high-risk. Most insurers remind their policyholders to renew their policies within ample time.

Poor Driving Record

Almost every insurer looks at driving records when determining rates and issuing coverage. Drivers who have a poor driving history represent higher risks in the eyes of their insurance companies. Therefore, they are a greater cost burden. Insurers routinely raise premium prices, or even decline coverage for drivers who have experienced:

  • Multiple at-fault accidents
  • A record of speeding tickets or reckless driving charges
  • SR-22 requirements, which are certificates that verify for states that high-risk drivers have insurance
  • DUI/DWI convictions

Most insurers don’t look at your entire driving history, only that of the last few years. If your insurer sees your record improve, it might remove your high-risk classification. Therefore, they might lower your prices. The safer you drive, the more likely you are to save money on your insurance rates.

Poor Credit

Some insurance companies take a driver’s credit into account when determining risk. A poor credit score might signal that a policyholder might not reliably pay for the coverage. Therefore, a high-risk rating may result for the policyholder.

Rare Vehicles

Not all vehicles can receive standard insurance coverage. Certain cars have excessive or unique value. A normal auto policy might not provide high enough coverage levels for those cars’ needs.

Classic vehicles, or custom-built cars might need excessive insurance because of their operational risks and values. This may mean an insurer has to classify the driver as high-risk in order to improve the driver’s coverage.

How Do You Insure Yourself as a High-Risk Driver?

One company might offer you more affordable coverage if it assigns you a different risk level than another. Therefore, it is always best to compare policy options when getting auto insurance.

While you may still carry a level of risk with one company, it may be lower than the risk you carry with another. Your independent insurance agent can often compare policies based on your driving risks. They can help you pinpoint affordable coverage. Furthermore, your insurer may offer discounts even if you are a high-risk driver. You might qualify for student, auto-payment or loyal customer discounts. That way you can save coverage in spite of your extra risks.

As a high-risk driver, make sure you never go without the required coverage for your vehicle. Also work with your insurance provider to balance costs and coverage.

Amigo Insurance Agency, Inc has your coverage needs in mind. Call 877-999-2644 to get a free quote on an affordable Chicago car insurance policy.

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If you have any questions about a current policy, submitting a quote online, or prefer to get a quote over the phone, our agents are ready to help.

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