The cost associated with getting insured is dependent on the potential risks of a policyholder filing a claim and an insurer suffering a loss. Individuals that are riskier to insure in the eyes of carriers are far more likely to pay inflated premiums than motorists that pose a low-risk. Insurers have put much effort into assessing risks and take many factors into account when determining what classifies a driver as a high risk. Some of these factors are out of the control of consumers and others can be controlled to avoid paying higher rates for coverage.

Factors that are commonly used to determine premiums are age, gender, driving history, claims history, place of residence, type of vehicle and annual miles driven. Many of these items are taken into consideration by insurers and most tend to agree which types of drivers will land in the high risk auto insurance pool based on each factor. In some cases these “risky” motorists may have a hard time locating coverage and an even harder time finding an affordable rate. Many companies will deny a policy to such motorists while others may be willing to accept the elevated risks, but at an increased premium.