What action can your insurance company take if you are determined to be a higher risk driver?

If you are determined to be a higher-risk driver, your insurance company may choose to add surcharges to your policy, resulting in an increased premium. This adjustment reflects the greater likelihood of claims being filed due to factors such as accidents, traffic violations, or other risky behaviors associated with your driving record. Higher premiums serve as a way for insurance companies to mitigate their risk by offsetting potential future costs related to your coverage. This practice is common in the insurance industry, as it allows insurers to assess and adjust rates based on the perceived risk of individual policyholders.

The other actions listed, such as canceling coverage or denying claims, are typically not taken simply due to being labeled as a higher-risk driver but would usually follow a more serious violation or issue. Contacting the DMV to suspend a license is a separate action usually based on legal reasons rather than insurance risk assessment.