Insurance companies will try to strike a balance between the risk of insuring drivers vs. the premiums that are taken in in order to make a nice tidy profit and pay out on claims. Some companies will not let drivers that are outside the regular risk categories have insurance because that means higher costs for everyone. Other companies will only insure these drivers because they feel the higher premiums will give them a better profit margin even though they pay extra claims. Preferred policies are only given by those companies who want to keep their risks lower than other non-standard insurers. Looking for the best insurance in Glendale takes a little time to figure out what category of risk you fit in and then find the best rates with a company there. –Insurance Glendale
Drivers who are under age 25 and not very experienced yet in driving will fall into the non-standard group. They will have more accidents, therefore, more risk, especially in big cities or in bad winter weather, so companies will raise their costs up and pass them along to these drivers. Someone who is over 25, but has had a DUI (driving under the influence charge) or had a really bad accident is also classified as a non-standard motorist. The past driving record will often support what will show up in their future driving behavior, so their rates will be high to help pay for the higher risks taken. When a driver is an excellent driver over age 25, he can still be in this classification if he drives a high-powered vehicle.
At the opposite end of the spectrum, the least costly insurance is for a preferred driver who has no tickets for 3 full years with no moving violations. Their good record shows maturity on their part and is valued highly in insurance. This is only one part of the preferred group. They will also have better than usual credit scores, too. Taking a defensive driving course will give you this classification too because you have gained extra skills in driving under particular conditions.
Both high risk and low risk have their characteristics, so drivers who do not fit either one will be classified as a standard risk. The insurers appreciate the large number of standard drivers they insure. Premiums are set according to what happens within this group. Normal acceptance of some moving violations is tolerated. If they have gone 3 years without any moving violations, the driver under age 25 can move up to the standard risk category instead of being a non-standard risky driver.