Reader’s Question:

How do car insurance companies here in Palm Beach, Florida figure out if a driver is considered as high risk? Do these car insurance companies do some investigation or something?

Thaddeus

Palm Beach, FL

Car insurance providers in Palm Beach, Florida, and anywhere for that matter, generally like to do their own study as a method to help them figure out if a driver might be higher risk than an average driver who has car insurance. The conventional method that they go by is that men are always a higher risk than women; teens are always higher risk than adults and those who are living in the city are higher risk than those who are living in the country.

Car insurance providers also would do some checking to find out if a driver has had continuous car insurance coverage with some car insurance providers, not necessarily theirs. If for some reason a driver has not, this is a signal for them that the last car insurance policy the driver had was cancelled for some reason, or that the person has just been driving without having car insurance coverage. Either of this possibility may cause the car insurance provider the driver has selected to work with to put him/her in the high risk category.

Tags: auto insurance company, car insurance, high risk insurance