High Risk Iowa Automobile Insurance

Auto insurance prices in Iowa are primarily based on the likelihood that a motorist will file a claim. In an attempt to accurately predict a driver’s accident risk, insurers frequently explore an extensive amount of research and statistical findings. Drivers are then placed into certain markets depending on their probability of being involved in an accident. Because of the increased likelihood that an insurer will have to pay out a claim for a high-risk driver, motorists who are placed in the non-standard market are often charged more for vehicle coverage. To avoid paying high coverage costs, drivers in the Hawkeye State are encouraged to avoid many of the practices that land drivers in this market, and to extensively shop around if labeled as a high-risk driver.

Unsafe and reckless driving can quickly lead to higher Iowa automobile insurance premiums. According to the IA Department of Transportation, speeding was one of the leading causes of car crashes in 2010. For this reason, speeding citations and at-fault accidents are generally met with increased coverage costs. Other offenses, such as DUI convictions or license suspension, may also be followed by more severe price increases. If a vehicle owner demonstrates a habitual tendency to take unnecessary risks while behind-the-wheel, their coverage provider may choose to cancel coverage or refuse to renew the policy. If this happens, the motorist in question must find another willing insurer as quickly as possible to avoid a lapse in coverage and the risk of additional consequences.

Options for High Risk Drivers in Iowa

Motorists with poor driving records, who are also in search of vehicle coverage, may find it difficult to locate an adequately priced plan because of their increased risk of filing a claim. As previously mentioned insurers commonly examine a driver’s accident risk and places them into specific markets. Motorists in the preferred and standard market generally have clean records and pose little risk, while those in the nonstandard market often face higher coverage costs. Often younger and inexperienced motorists are placed into this higher risk category based on teen crash facts published by the Iowa Department of Transportation. Younger drivers in particular have an increased tendency to take unnecessary risks, speed and cause automobile accidents than any other age group.

One of the best ways to prevent coverage costs from increasing is to avoid automobile accidents and traffic citations. If a motorist has a blemished record, they are encouraged to shop around and explore quotes from multiple sources in search of an adequately priced plan. While the majority of insurers prefer to insure drivers in the standard or preferred market, there are still companies that primarily offer high-risk policies. Often accidents and citations only remain on a motorists driving record for three years, so after maintaining a clean record for an extended time period, vehicle owners are encouraged to once again shop around for potentially cheaper insurance.