High Risk Insurance Classifications

A high risk insurance classification negatively affects your ability to get insurance and how much you will pay in premiums for insurance. There are many factors considered by insurance underwriters to determine your risk classification.

Age

Age is a factor in risk classification for health, life and auto insurance. Advanced age can place the insured in a high risk category for health, life and auto insurance. Young age can put the insured into a high risk category for auto insurance.

Gender

Gender plays a part in risk classification. Women tend to live longer than men, so a 60-year-old man would be in a higher risk category than a 60-year-old woman for life insurance. Young males are in a higher risk category than young females for auto insurance due to statistical data that show that young males tend to drive more recklessly than young females.

Location

Location of a home can negatively affect the risk classification for homeowners and auto insurance.

Profession

Profession plays a role in risk classification. A dangerous career will place an insurance applicant in a high risk category for life and health insurance.

Sports Car

An expensive sports car is considered a higher risk for auto insurance than a less expensive sedan.

References

• Carinsurance.com: Factors That Affect Your Car Insurance Premium
• Loveto know: Insurance: High Risk Home Owner Insurance: The Home
• FreeAdvice: Life Insurance Law What factors are considered in individual life insurance underwriting?