To auto insurers, drivers who have higher likelihoods of filing claims on their policies equal greater cost risks. After all, drivers who file a lot of claims place the largest financial burdens on insurers. That’s why most insurers want to get a good idea of a driver’s habits before agreeing to insure them.
Sometimes, based on their analysis of the driver, the insurer might designate the policyholder as a high-risk driver. They may then require the driver to buy a high-risk auto policy, which will provide the right amount of coverage.