There are millions of driver and cars that take the road each and every day. Most of these drivers and their cars have car insurance. But not all drivers have the same insurance. Have you ever wondered what type of driver you are and what if that affects the insurance that you have for you and your car? Insurance companies base their insurance policies on a driver’s type of car, driving history and geographic location. Their cars are reviewed by insurance companies and are assigned to a certain pool group and insure each of them differently.
Standard Risk Drivers. The average driver with an average car carries a few traffic violations that are spread over many years and his car that is not extremely or statistically high risk for accidents or crime. This type of driver is considered standard risk. This type also carries the most percentage of overall drivers. If you are this type of driver and you are likely to receive the standard car insurance policy.
Preferred Drivers. The higher end of car insurance companies’ look at drivers that have impeccable driving records. They attract these drivers to avail of their insurance. They also pursue drivers that live in a relatively remote area or drive in an area with very low traffic density, drivers who have characteristics and behaviors that statistically create lower risks for any traffic incidents. These Preferred risk drivers have lower than average risk and as a result, they are charged lower premiums by their insurance carrier.
High Risk Drivers. These drivers usually have a rich history of traffic accidents or incidents, live in an area with a very high density in traffic or in an area with high crime rates. These companies are allowed to reject or neglect these applicants because of this information. It is not prejudice or bias, just a business decision based on statistics and studies. If you belong in this group, you are likely to have a very high premium or more likely be transferred by the usual insurance company carriers to other companies that cater to this pool group.
Special Risk Drivers. These drivers are separate from the usual type of drivers because they do not fit with any other pool group and they are unable to get any insurance with any insurance company carrier. These drivers either have extreme driving records with a lot of traffic violations. These drivers may also have some irregularity in their records such as physical handicaps or some form of mental retardation. If you belong in this group, you will have to avail of car insurance through a special assigned risk program. There are many programs for each state and offer fair premiums for car insurance.
Insurance companies cover a broad range of drivers and cater to more than one pool group of drivers. Other companies specialize in a certain pool group and offer exclusive services for that driver type. Some insurance carriers create other departments or branches in order to provide insurance to more than one pool group while maintaining their exclusivity. This allows them to insure a broader range of drivers and charge the appropriate premium for driver according to their driver type and pool group.
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