Affordable Car Insurance for High-Risk Drivers
Several car insurance companies offer competitive premiums to high-risk drivers—here’s where to look for them.
Table of Contents
- Where to find cheap high-risk car insurance
- Who is considered a high-risk driver?
- How much is high-risk auto insurance
- How to lower high-risk insurance costs
- FAQs
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Several car insurance companies offer competitive premiums to high-risk drivers—you just need to know where to look for them! High-risk drivers can find affordable rates by comparing quotes from multiple providers and taking steps to clean up their driving records.
Finding affordable car insurance as a high-risk driver is challenging—but not impossible. Several regional companies specialize in high-risk insurance coverage, but you can even find competitive car insurance rates from top national brands like State Farm, GEICO, and USAA.
Ready to find
cheap car insurance
as a high-risk driver? Here’s everything you need to know—what qualifies a high-risk driver in the first place, which are the best car insurance companies for you, and what you can do to find the lowest rates possible.Where to find cheap high-risk car insurance
High-risk drivers have two main options when it comes to shopping for auto insurance coverage:
- Name-brand insurance companies that may or may not approve you for coverage
- Non-standard insurance companies that specialize in high-risk car insurance
Non-standard insurance companies like
The General
are more likely to approve a high-risk driver for an auto insurance policy—but they won’t exactly be cheap. You can typically work out lower rates from name-brand insurance companies, but the trick is getting approved.USAA, State Farm, and GEICO are known for offering the cheapest car insurance rates to high-risk drivers.
USAA
offers the most competitive rates, but it’s only available to military members and their dependents. State Farm also offers competitive quotes, and high-risk drivers may be able to save even more by enrolling in State Farm’s Drive Safe and Save program
, which will accumulate discounts for good (or improved) driving habits.GEICO
is pretty comparable to State Farm, but the two tend to offer better rates to different types of high-risk drivers. For example, GEICO tends to offer the best rates to drivers with poor credit, but drivers with a less-than-perfect driving record may find better rates with State Farm.However, the best car insurance provider for you will depend on your individual driving history—specifically when it comes to what has placed you in the high-risk category. Let’s take a look at what makes a high-risk driver.
Key Takeaway High-risk drivers can typically get cheap auto insurance from USAA, State Farm, or GEICO, but they may have to go through a non-standard company like The General if they’re having trouble being approved by a name-brand company.
Who is considered a high-risk driver?
A high-risk driver is anyone who poses more financial risk to their auto insurance company—either through a higher likelihood of filing claims or not making payments on time. High-risk drivers often receive higher premiums for car insurance, if they are even approved for a car insurance policy in the first place.
But how exactly do insurance companies decide who is considered high-risk? Insurance providers look at several factors of a prospective customer’s driver profile to determine
who will be given a high-risk auto insurance rate
, including the following:- Driving history
- Age
- Insurance history
- Credit history
You only need to have one factor working against you to be put in the high-risk category. That means you could be looking at higher car insurance costs if you have recent moving violations or car accidents on your record, you have a bad credit score, you’ve let your insurance coverage lapse, or you’re under 25. However, every insurance company weighs these factors differently, so let’s break them down a bit more.
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Numerous at-fault accidents
Even a single
car accident can affect your insurance rates
, but accruing multiple accidents that were your fault will spell major risk to insurance companies. Accident forgiveness
is a common policy addition that will keep your rates from being surcharged after your first at-fault accident, but it won’t necessarily keep you from being placed in the high-risk category.Multiple speeding tickets or traffic violations
Drivers with multiple infractions on their driving record are associated with higher risk because they’re more likely to repeat risky driving behaviors that raise their chance of a costly claim.
A single major violation like reckless driving can place you in the high-risk category, but multiple minor violations like repeated speeding tickets can have the same effect. Not only will you have to face the legal consequences, but you’ll also be prone to high-risk insurance rates
as long as those speeding tickets stay on your record
.State Farm tends to offer competitive rates to drivers with multiple tickets or recent accidents on their records.
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Lapse in your insurance coverage
An insurance lapse occurs when you’ve let your auto insurance policy expire without re-enrolling or purchasing a new one. Essentially, this creates a window where you would be
driving with no car insurance
if you chose to operate your vehicle. This spells a lack of responsibility to insurance providers, which will then take greater precautions when approving and estimating your rates.
Young driver
Finding
cheap car insurance for young drivers
can seem especially difficult. Even with spotless driving records and shining payment histories, drivers below the age of 25 are considered high-risk based on their lack of experience alone. Drivers ages 16 to 19 are also three times more likely to be involved in a fatal accident than 20-year-old drivers according to the Insurance Institute for Highway Safety (IIHS).That said, young drivers without violations or accidents on their driving records will get more affordable rates than young drivers with several high-risk factors. Drivers below the age of 25 who maintain a B average or better in school may even be able to
save on car insurance with a good student discount
.DUI
Any driving violation can place you in a high-risk category, but driving under the influence will typically have the worst effect on your rates. Drivers charged with a
DUI or DWI
can expect to see an 80% increase in their rates, on average. Even a single DUI charge is grounds enough for an insurance provider to think twice about approving you for coverage.Poor credit score
Unfortunately, drivers with poor credit scores below 580 may see higher rates than drivers with good credit. A poor credit score is typically seen as a precursor to late payments or missed payments altogether and can be used to determine rates in certain states. GEICO and
Allstate
tend to offer reasonable rates for drivers with poor credit scores in states where this factor can be considered.The following states have laws that prohibit insurance companies from considering credit scores when calculating your rates:
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Car insurance premiums for high-risk drivers are more expensive than for drivers with low risk, but how much depends on the combination of risk factors that apply to an individual.
For example, a driver with a poor credit score will almost certainly see a lesser rate increase compared to a young driver with multiple traffic tickets. Similarly, the average rate increase for a driver with a single DUI is 10 times the average rate increase for a driver with a single insurance lapse of fewer than 30 days.
The cost of high-risk insurance will also depend on the type of insurance policy you opt for. A
full-coverage insurance
policy will be much more expensive than a liability-only policy. Certain high-risk drivers may also have to file an SR-22 form
attesting that they have enough insurance per their state’s requirements. An SR-22 will almost certainly raise your rates.How to lower high-risk insurance costs
Many high-risk drivers—especially those with an SR-22—will opt to adjust their car insurance coverage to fit their budget. That could mean
dropping full-coverage insurance
and sticking to their state’s minimum liability requirements, as well as opting for a higher insurance deductible.Either of those options could leave you paying more out-of-pocket in the event of an accident, but you’ll likely pay less on your monthly premium as a result. However, those aren’t the only options for high-risk drivers. Here are a few of our favorite ways to lower your high-risk insurance costs even more.
Take a defensive driving course
Taking a defensive driving course
won’t just improve your driving skills—it is also a great way to reduce your risk profile! Many states will let you take these to reduce the effects of a moving violation on your record, and some even require insurers to offer a discount upon successful completion. You may even be able to apply the safe driving tips
you learn toward further savings down the road.Work toward a clean driving record
A defensive driving course is just one of the steps that you can take to
clean up your driving record
. Driver's license points will go away after a certain amount of time, so keep practicing safe driving to stay out of further accidents and traffic violations, and your record will clear up sooner than you think.You can also contact your local DMV to see if there are any steps you can take to remove points more quickly or to fix any errors on your record. Just make sure you have substantial documentation ready to contest points—you will need to present it in person.
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Compare auto insurance quotes
Comparing multiple
car insurance quotes online
is perhaps the best way to find the lowest car insurance rates available to you. Every insurance provider uses different formulas to assess your risk and determine your rates, so it's impossible to know you’ve gotten the best rate unless you’ve done your research. Compare quotes from at least three to five providers to narrow down your options.MORE:
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FAQs
How long are you considered a high-risk driver?
Drivers with accidents or moving violations on their record are typically considered high risk for three to five years—or as long as the incidents stay on their driving record.
What’s the average cost of high-risk car insurance?
On average, high-risk car insurance costs anywhere from 8% to 80% more than standard insurance. The exact amount varies depending on the circumstances surrounding a driver’s high risk. For example, a high-risk driver who’s simply had a short lapse in their insurance will pay much less for car insurance than a driver with a DUI on their record.
