Car Insurance If You Have A Bad Driving Record Or No Driving Record
So you dont drive very much! But when you do it makes you nervous to know that you might not be insured if something happens?
For most Australians knowing they are not insured can be a huge problem resting on their mind. Therefore it is important to find the best deal if you believe you might not be the best customer for an insurance company, based on previous history.
There are a few things to watch out for if this is the case and I will highlight them below:
Limited choice for some insurance companies
If you have a bad history on the road such as criminal charges or a long list of infringements or car accidents, this could automatically reduce the number of companies willing to even offer you insurance. The only way to know who will offer you insurance is to personally find out if you qualify through their internal rules of who they will insure, this criteria will be governed by the insurance company itself.
Paying a higher premium for insurance
Insurance companies make their money by putting the odds in their favour, much like a casino for instance. You see, they feel much more comfortable with insuring people that will probably not have an accident, in a way it is a sure bet for them. If on the other hand you have a long record of accidents they may still take you on to insure, unfortunately they only way they can turn the odds in their favour again to make a consistent profit is to charge you a higher premium for the privilege.
Paying a much higher excess that expected
So if worst really does come to worse again (if you have a bad driving record) then insurance companies might insure you by increasing your excess you have to pay, if you are again involved in an accident. There is still a premium you must pay after an accident, this premium is called an excess and the price of it will be defined by the car insurance companies themselves.
Reduced choice of cars that they will insure
Insurance companies know through historical data that some cars are more likely to be involved in accidents as opposed to other cars. Simply due to historical data, this reflects into higher premiums to insure certain cars. For example it is more expensive to insure a turbo charged car than a normal car, as historically they are involved in more claims and inevitably cost the insurance companies more money.
So these are a few things to look out for when wanting to insure a car after a not so great driving record. And that is a reason to ensure you shop around for the best car insurance deal you can get.
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