If you have recently shopped around for auto insurance and you are stunned by some of the quotes you are receiving, there may be something at play of which you are unaware. Consumers who are labeled "high risk" during the quote process will be moved immediately into the high-risk insurance category, and there they will stay until the risk factors are reduced. This could be the reason why a lot of the quotes you are receiving seem too much. Here are the determining factors insurance companies use. If any of them apply to you, then you can understand how you are labeled "high risk."

OWI/DUI in the Last Two to Seven Years

Depending on what state you live in, an OWI/DUI on your record in the last two to seven years (some of those offenses stay on your record for years!) places you in the high-risk category. You can fight to have that removed from your driving record sooner, but it may still be visible on your record when insurance companies check you out. There really is not much you can do about this except wait for it to drop off your record permanently and not commit another offense.

One or More Traffic Violations in the Last Year

Speeding tickets, accidents, and not wearing your seat belt often result in traffic tickets. Traffic tickets list the reasons for your tickets, and that, in turn, is posted to your driving record. One or more offenses and tickets in the past year may be viewed as risky behavior, and particularly dangerous offenses puts you on the "high-risk" list. 

Suspension or Revocation

A suspension or revocation of your license and/or your vehicle's registration is a huge red flag to insurance companies. It means that you lost enough points on your license to have your driving privileges taken away. Insurance companies do not want to insure such a dangerous driver, even though they will with a high-risk policy. 

Your Credit Score

More and more insurance companies are looking at credit scores to determine if a consumer is "risky." Low or poor credit scores indicate that someone might not pay their bills or be responsible where it counts, including behind the wheel. If that is the case, then you are labeled a "high risk" because your credit says you are. As long as you continue to improve your credit score, your insurance quotes and premiums will drop. 

For more information, contact an insurance agent about high-risk insurance.