Their Yellow Page ads tout no auto insurance problem we cant handle, no one refused, and no credit check.


Theyre high-risk auto insurance brokers, and their bottom line is that anyoneeven those whove had their driving privileges revokedcan get car insurance if theyre willing to pay the price.


High-risk insurance covers the worst of the worst so everybody can buy car insurance, says Steve Guillory, an owner of U-Save Insurance Agency Inc., of Spokane.


Brokers here say theres no set definition for what high-risk insurance is, because every insurance carrier views risk differently. Yet, generally, its for drivers whose records are blemished by having multiple speeding tickets, accidents, or serious offenses such as a conviction for driving under the influence or reckless driving. Many have been dropped by mainstream insurers. All can expect to pay higher premiumssometimes significantly higherthan those who have good driving records.


Every company has different criteria about whom they will and wont insure, says Angela Tapia, an agent for Rainwater Insurance, of Spokane Valley. Rainwater markets itself with a two-page advertisement in the Yellow Pages, and does about 80 percent of its business with high-risk automobile insurance clients, Tapia says.


Insurers take various approaches to handling clients whose driving records are blemished, says Gary Pierce, owner of Tom Rousseau Insurance Agency, of Spokane, which doesnt sell high-risk auto policies.


For instance, he says, Seattle-based Pemco Mutual Insurance Co. sells policies only to what it calls preferred drivers, those with above-average driving records, and commonly will drop customers who have two or more violations, tickets, or accidents. Seattle-based Safeco Insurance Co., on the other hand, has more than 10 risk categories that a driver can be assigned to depending on his or her driving record, Pierce says. Drivers can remain insured by Safeco after theyve had violations or accidents, but will be assigned to a higher-risk category and will pay higher rates the higher they move up the risk category list from preferred status.


A point system


U-Save Insurances Guillory says most insurers use a point system to determine whom theyll insure, but says theres little consistency among the various insurance companies in the assigning of points for a violation or incident, or in the maximum number of points allowed before coverage is withdrawn or denied.


Generally, he says, an insurer might assign six points to a driver who was involved in an at-fault accident, was convicted of driving under the influence, or been convicted of reckless-driving. Being convicted of driving with a suspended license might get you four points, and speeding convictions might cost you two points each. Some high-risk companies wont insure a driver with more than 15 points against them, while Guillory represents a company that will insure a driver with up to 30 points.


Yet, insurance is still available to drivers deemed uninsurable by high-risk companies.


In those cases, drivers are referred to the Washington Automobile Assigned Risk Plan, a statewide insurance pool that all insurance companies in the state must participate in to provide insurance coverage for drivers who cant get insured anywhere else, Guillory says.


Rebeckah Mauch, an agent for North Town Insurance Agencies, another Spokane agency that caters to high-risk drivers, says she hasnt had to refer high-risk drivers to the state plan.


Ive never had the problem of not being able to place a client with an insurance company. Its just a matter of price, she says.


That agencys manager, Kellie Davis, says shes quoted auto policies as high as $528 a month, but says such a figure can be misleading because more factors come into play beyond just a consumers driving record. Those factors include whether the driver had auto insurance previously, his or her marital status and credit rating, whether he or she rents or owns a home, and even the ZIP code where the driver lives. (Rural areas have lower rates). The biggest factor in the $528-a-month rate Davis spoke of was that the customer drove a high-performance vehicle, which automatically places the driver in a higher risk category, she says.


Manuel De La Torre, of De La Torre Insurance Agency, of Spokane, says he likes selling high-risk auto insurance because customers often are locked in for at least three years when they buy a policy. Its only after three years of violation- and-accident-free driving that most companies will drop the points held against a drivers record, making them eligible for lower insurance rates, De La Torre says.


Still, says Mauch, many high-risk clients didnt reach that status by being responsible, and its very common for clients to secure auto insurance to regain driving privileges from the Department of Licensing, then let their policies lapse.


Davis says most insurers ask for a minimum of a one-month insurance payment in advance. For an additional about $20, an agency will fill out and send to the DMV a proof-of-insurance document known as an SR-22.


Another problem, Mauch says, is that the insurance cards issued by insurers that drivers keep with their auto registrations in their vehicles routinely are issued for six-month terms, and she asserts that police officers rarely check to see if the card is current when they request to see it during a traffic stop. Davis says North Town gets about one phone call a month from police officers to verify the status of an insurance card, and asserts thats only because North Town is known as a provider for high-risk drivers.


There are a lot of uninsured drivers on the road, Mauch says. And they are the ones who make your and my insurance rates go up when we are hit by an uninsured driver.


Tapia says insurers remain in close contact with the Department of Licensing about whether insurance policies are current, especially for drivers whove regained driving privileges after the agency had sent in an SR-22. She says some insurers will notify the department within a week after a risky drivers policy has been canceled due to lack of payment.


De La Torre says the average high-risk client is between 25 and 30 years old, yet Mauch and Davis say its very common for adults with families to have their standard policies threatened by an insurer because of a DUI. To avoid losing their preferred family policy, the adult will often satisfy the Department of Licensing by taking out a high-risk policy with one of North Towns insurance providers, and maintain the familys preferred status with a mainstream insurance provider that might not check the individuals driving record and learn of the offense.


The reason we insure high-risk drivers is because there is such a great need, says Davis. There are just so many drivers the preferred companies wont take.


Mauch says there are rewards in what they do. Its our hope that a high-risk driver at age 20 will some day become a preferred driver, she says.


Contact Rocky Wilson at (509) 344-1264 or via e-mail at rockyw@spokanejournal.com.