Insurance Experts Explain How Insurance Companies Classify Drivers

LOS ANGELES, Dec. 14, 2018 /PRNewswire-iReach/ -- Cheapquotesautoinsurance.com has released a new blog post that presents the way insurance companies classify drivers.

Insurance companies assume a risk when issuing coverage to person. The risk refers to the likelihood of being involved in an accident and filing a claim.  Persons with more chances of causing the company financial losses are considered high-risk. Find out more and get free quotes from http://cheapquotesautoinsurance.com/

Insurance companies will place a driver in one of the following risk categories:

Premium (also called Preferred). This is the top tier category, where only the safest drivers are placed. There are multiple requirements for this category. First of all, the driver must have a clean record, with no traffic violations or claims in the past 3-5 years. Secondly, the driver must have a Good or Excellent credit score. Companies prefer clients with a FICO credit score over 800. They are regarded as more responsible with finances and are more likely to pay their premiums before deadline.

Standard. Drivers placed here are not the best, but neither the worst. It is an intermediary area. Drivers here usually have just one requirement to fulfill until reaching the Preferred status. Standard drivers usually have very few minor traffic violations or claims. They also have Good credit score.

High-Risk. Drivers considered high-risk pay very expensive premiums. There are multiple reasons why a person might be considered a high-risk driver. A recent history of multiple traffic violations and claims is the main reason. A DUI/DWI conviction will automatically make a driver be classified high-risk.  An at-fault accident will do the same thing.  Poor credit score and coverage lapses will also negatively influence the insurability score. Teen drivers are considered high-risk due to their lack of experience behind the wheel.

"From an insurer's point of view, there are 3 types of drivers: safe, standard and high-risk. Premiums are calculated based on the insurability risk", said Russell Rabichev, Marketing Director of Internet Marketing Company.

Cheapquotesautoinsurance.com is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.

For more information, please visit http://cheapquotesautoinsurance.com/

Media Contact: Russell Rabichev, Internet Marketing Company, 8183593898, [email protected]

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SOURCE Cheapquotesautoinsurance.com