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How do I Choose the Best High-Risk Insurers?

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  • Written By: Florence J. Tipton
  • Edited By: John Allen
  • Last Modified Date: 29 November 2016
  • Copyright Protected:
    2003-2016
    Conjecture Corporation
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High-risk insurers typically specialize in providing insurance coverage to individuals that have disqualifying circumstances for traditional insurance coverage. You may need to determine if high-risk insurance is available in your area when you are unable to qualify for traditional insurance coverage. Researching coverage options offered by high-risk insurers can help you identify comparable plans that fit your needs. Obtaining quotes from high-risk insurers may also help with your selection by finding the most affordable premiums.

The types of insurance coverage available to consumers may vary based on local requirements and the presumed risk for covering a high-risk individual. Most insurers use a rating system based on certain risk factors to identify potential risks to providing insurance coverage. The insurer may use these factors to project the probability of exposure to loss. In some cases, high-risk insurers might refuse coverage if insurability factors outweigh the amount of risk the insurer is willing to take.

Factors used to determine high-risk may vary among insurers and are usually different based on the type of insurance coverage. High-risk health insurance factors may include medical history, preexisting conditions, and lifestyle. For high-risk auto insurance, the factors usually include traffic violations, arrests while driving, type of car, and the driver’s age.

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One way to choose high-risk insurance is to research coverage options based on your insurance needs. Some high-risk insurance plans have a deductible that you are required to pay before the insurance covers a claim. Other plans might limit the type and amount of coverage you can receive.

Comparing quotes on monthly premiums from several providers is another way to choose a high-risk insurance plan. Generally, you might compare the premium and deductible to determine which plan offers the best coverage for the cost. Often, the premium is higher based on the presumed risk by an insurance company. As a result, you may absorb most of the costs for coverage with fewer benefits in the policy.

In some jurisdictions, you may be able select a high-risk insurer that offers health insurance when you are denied insurance coverage elsewhere. This type of insurance is usually with a high-risk pool regardless of risk factors. A high-risk pool for health insurance guarantees coverage for a group of individuals unable to obtain traditional health insurance. In a country that provides universal health insurance, you might have coverage automatically without participating in a high-risk pool.

If you currently have auto insurance, you might ask about converting your current policy into a high-risk insurance plan. When coverage from a current insurance carrier is not an option, you might want to contact other insurance companies for high-risk coverage. A local or regional transportation agency might have a list of high-risk auto insurance carriers.

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