Elijah Black is a Greenville, South Carolina native with a B.A. English from Coastal Carolina University. He is a fiction writer and also works as a freelance writer and editor. He’s worked as a Production Assistant for WYFF 4 and has been published in several publications and websites across the United States.

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Auto Insurance Agent

UPDATED: Jun 3, 2021

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Don't Forget These Facts

  • Maintain a clean driving record to become a lower risk for insurers
  • If you have poor credit, you’re considered a high risk
  • Driving your vehicle less during your policy period can lower your risk and auto insurance rates

Many articles teach you how to find cheap SR-22 insurance, but few explain how to become a lower risk for insurers. Don’t worry – this short guide explains everything you need to know about becoming a low-risk driver and securing affordable auto insurance.

Read on to learn how to become a lower risk for auto insurance companies and to compare SR-22 insurance quotes from multiple companies. Enter your ZIP code above to get started with our free online comparison tool.

How do I become a lower risk for insurers?

Assuming risk is part of the insurance industry. Auto insurance companies gauge a policyholder’s risk by looking at several factors, such as:

  • Age
  • Commute Mileage
  • Credit History
  • Coverage Level
  • Deductible
  • Driving Record
  • Gender
  • Location
  • Marital Status
  • Vehicle

Some of these factors can’t be changed, like age. To secure a lower risk, you’ll have to fit into a category of drivers who have a clean driving record and good credit.

How do different auto insurance factors affect risk?

Age, gender, and your credit score can affect risk with insurance companies. Even the vehicle you drive can increase your risk. A car that has a higher claim rate is usually riskier to insure.

See your vehicle’s auto insurance rate forecast at Insurance Institute for Highway Safety (IIHS) to learn more.

If you have a marginal driving and credit history, use your car less to save money and reduce your risk. You could save 15% on car insurance coverage.

Let’s say you’ve done all of that, but car insurance companies keep denying coverage. Have you ever wondered: Why can’t I get car insurance? Continue reading to learn about reasons why auto insurance companies deny your request for a policy.

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Can auto insurance companies refuse to insure you?

The short answer is yes. If auto insurance companies believe you’re too high a risk to insure, they can deny your request for auto insurance.

Underwriters will look at how many infractions you have on your record. Multiple accidents, DUIs, and traffic violations could result in a denial of service.

High-risk drivers with too many infractions are usually denied by the individual market (also known as the voluntary market).

How do I get auto insurance after getting denied by several companies?

It’s illegal to drive without car insurance in most states. You’ll need to go to your local DMV (or BMV) and explain that you can’t find auto insurance voluntarily.

Your local DMV has a list of auto insurance companies known as the state-assigned risk pool. This is essentially a group of car insurance providers that the DMV chooses for you.

State-assigned risk pools are ideal for people who are high-risk drivers that need non-standard auto insurance (or SR-22, SR-50, and FR-44). The bigger the risk pool, the better your chances of avoiding expensive SR-22 insurance costs.

Can adverse selection work lower my auto insurance risk?

Adverse selection is auto insurance companies choosing to insure high-risk drivers because most motorists in the voluntary market and state-assigned risk pool are identified as high risks.

This causes auto insurance rates to be more expensive in specific areas. Michigan, Florida, and Louisiana are good examples of adverse selection. These states are densely populated, but they’re known for uninsured drivers, too.

How to Become a Lower Risk for Insurers

If you want to become a lower risk, think about driving less during your policy. Driving less than 6,000 miles during your policy can save you at least 15% on auto insurance.

The most effective method is to keep a clean driving record. If your history has a few infractions, you’ll have to wait at least three years for it to clear. In the meantime, try to target discounts and save money on auto insurance.

Now that you know how to become a lower risk for insurers, use our free online quote tool below and compare insurance quotes before you buy SR-22 insurance to secure the best rates.