How to Get the Best Car Insurance for High-Risk Drivers and Save Money

Best Car Insurance for High-Risk Drivers and Save Money

If you get a traffic citation, lack driving experience, or have bad credit, insurers may classify you as a high-risk driver and hike your premiums accordingly. However, there is still hope. There are many reliable carriers that will cover people with a terrible driving record, and if you're having difficulties getting insurance, your state's vehicle insurance program may be able to help.

If you want to acquire a list of high-risk insurance firms in your region, enter your ZIP code above to get a quotation.

Which Businesses Provide The Most Affordable High-Risk Auto Insurance?

If your driving record places you in one of the high-risk categories, certain firms may offer you lower auto insurance prices than others. We evaluated rates from five major insurance companies that provide policies for high-risk drivers, and Geico consistently provided the lowest pricing, with rates that were 36% less expensive than the average.

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All rates are based on Texas state averages for a one-year, full-coverage insurance. Unless otherwise specified, all estimates are for a 30-year-old guy with average credit and no previous driving mishaps.

While your rates will differ from the sample in our study, this list can point you in the right direction.

Geico consistently provided the most economical rates, providing the least expensive choice for each of our sample drivers, however, State Farm's rates were also reasonable.

The General, the nonstandard insurer we included in our survey, did not provide competitive rates to any of our sample drivers. High-risk drivers, on the other hand, may discover that mainstream insurers refuse to provide them with a quotation at all, but nonstandard insurers, such as The General, are more likely to provide coverage.

Because this study is based on a small sample of driver characteristics, your rates may differ. Always compare rates from different providers to discover the most cost high-risk auto insurance.

What To Do If Insurers Refuse To Insure You

Car insurance is required in almost every state, however certain insurance firms may refuse coverage to high-risk drivers. There are two primary choices to consider in this case: nonstandard insurance businesses and state-sponsored automotive insurance policies. Regrettably, both tend to charge drivers more prices than mainstream companies.

Nonstandard insurance businesses are simply those who specialize in providing coverage to those who have been unable to obtain a quotation from another provider. Nonstandard insurers are generally regionally focused than mainstream carriers, however, larger businesses include The General, Safe Auto, and National General.

For further information about assigned risk plans, contact an insurance agent or broker, or read about your state's plan in the Automobile Insurance Plan Service Office (AIPSO) directory.

In each state and the District of Columbia, we've included the name and link to the state plan or mechanism for high-risk drivers.

What Is A High-Risk Driver?

A past DUI arrest, age, gaps in insurance coverage, and credit scores may all impact your risk profile, and hence your vehicle insurance rate.

The following are the most prevalent high-risk factors:

•DUI infraction

•Several tickets

•Young or inexperienced drivers

•Insurance coverage lapse

•Bad credit

•Other major traffic offences

The amount you'll pay as an at-risk driver varies, but the more criteria that apply to you, the higher your rates. Younger drivers with a traffic offense had the greatest overall rates. Driver's license points are not used in every state, but many of these high-risk characteristics will add points to your license as well.

DUI Infraction

Your premiums will rise if you've been convicted of driving under the influence. When you regain possession of your license, your insurer may be required to file an SR-22 form on your behalf. This form shows that you have at least the state-required limits on your vehicle insurance.

You may be required to have the SR-22 form on file for several years, during which time you may be charged higher rates as a high-risk driver.

Several Tickets

While one speeding citation may not place you in the high-risk group, if you receive repeated violations or a penalty for exceeding the posted speed limit, you may have difficulty obtaining an affordable rate.

Young Or Inexperienced Drivers

According to research, teenage drivers are more prone to engage in dangerous driving behavior and cause automobile accidents, thus insurance companies modify their prices appropriately.

Drivers who are freshly licensed, regardless of age, always face higher insurance rates than seasoned drivers who have been driving for a longer amount of time. One way around this regulation is to ask a more experienced driver to add you to their existing insurance. This shortcut guarantees that your rates will be cheaper than if you went it alone.

Insurance Coverage Lapse

If you let your insurance expire, whether by canceling your coverage or failing to pay your payments, you'll discover that your premiums are higher when you reapply. This is because a lapse in coverage implies to insurers that you may be financially untrustworthy.

The good news is that once you've shown to the insurance provider that you're a responsible driver, your premiums will return to regular levels. The bad news is that it might take up to six months for your coverage premiums to drop.

Bad Credit

People with a bad credit history are likewise considered high-risk drivers. Insurance firms are effectively taking millions of bets in the form of insurance policies, and they want to cover people who are less likely to make claims to reduce their risk.

Checking your credit history is one fast and straightforward approach for insurers to estimate the risk that you will submit a claim. Fortunately, some insurance companies do not conduct credit checks – but you must look around. Furthermore, in a few places, insurers are not permitted to use credit history for determining premiums.

Other Major Traffic Offences

A DUI is one kind of a significant driving violation, and if you have any other type of serious driving infraction, such as hit and run, road rage, reckless driving, or excessive speeding, your insurance prices will rise.

However, higher insurance rates may be the least of your concerns because several of these moving offenses can be deemed crimes and result in jail time.

How Can I Locate High-Risk Vehicle Insurance?

The first step in locating a fair rate for a motorist with a poor driving record is to obtain many internet quotations from various insurers and compare rates to determine the best plan.

You won't know which carrier will provide you with the lowest rate until you obtain your bids. There are more things you can do to reduce your rate. With a few exceptions, proactive interventions such as the ones listed below may help improve your risk profile:

•Make an effort to raise your credit score.

•As a student, make good marks.

•After a violation, enrol in driving lessons.

Just bear in mind that your insurance provider will require confirmation of these precautions, so keep good records and present them to the insurer when you're ready.

Being a high-risk driver does not endure indefinitely.

While insurance companies may see you as a high-risk driver now, you'll be relieved to hear that your rates will decrease over time as you demonstrate you're a safe and responsible driver.

Yes, certain events, like a DUI, can cause you to pay higher premiums for a longer period of time, but most high-risk drivers can begin paying reduced rates within a year or two.

Commonly Asked Questions

What Exactly Is A High-Risk Driver?

A high-risk driver is someone who insurers believe is more likely than the average motorist to file a claim or be involved in an accident. There is no hard and fast rule regarding who is or isn't high-risk, but if you're young, have numerous significant driving offenses on your record, or have let your insurance expire, you're probably high-risk.

How Much Does High-Risk Insurance Cost?

The amount you'll pay as a high-risk driver will depend on what makes you high-risk, how long ago the event occurred, and where you reside. However, we discovered that being high-risk might raise your premiums by as little as 4% or as much as 165 percent.

What Type Of Insurance Is Appropriate For High-Risk Drivers?

Geico has outstanding rates for high-risk drivers, but those with extremely low-risk profiles may need to find a nonstandard insurer like The General or Safe Auto. Alternatively, you can obtain coverage via your state's high-risk insurance pool.

Methodology

Actual prices will differ depending on your physical location, driving history, and other factors, so use the survey results as a guideline only. The insurance rate data utilized in Value Penguin's study came from Quadrant Information Services. These prices were obtained publically from insurer filings and should only be used for comparison purposes – your individual quotations may change.