High-risk auto insurance

What is high-risk car insurance?

Think of high-risk car insurance as a label more than a product. It’s not a separate type of policy, but it is how insurers describe drivers they consider more likely to file a claim. That could be due to traffic violations, a recent DUI or even a lapse in coverage.

The riskier you appear on paper, the more you’ll typically pay for coverage — that’s how insurers balance out the odds. But here’s the thing: not every company sees risk the same way. Some specialize in helping drivers with imperfect records, and others offer tools and programs to help lower your premium over time. So if you’ve hit a bump in the road, it doesn’t mean you’re stuck — it just means you might need to shop a little smarter.

How to get high-risk auto insurance

The best insurance for high-risk drivers may be more limited than those for standard car insurance shoppers. Not all car insurance companies are willing to insure high-risk drivers, even for a higher premium. Also, some drivers that fall into the high-risk category require SR-22 filings. These forms are filed with the state on the driver's behalf by the insurance company to prove that the driver holds the state-mandated level of liability coverage. If you need high-risk auto insurance, these strategies may help you navigate the process.

• Identify your high-risk factors: The best high-risk auto carrier for you will likely be different if you need SR-22 filing than if you have a teen driver to insure. Understanding your rating factors may help you identify how limited you are in your coverage options.
• Research high-risk auto carriers: Researching carriers, like those listed below, and comparing quotes may help you see if any could offer you an affordable premium.
• Find an independent car insurance broker: Finding a broker that works closely with several insurance companies may help you identify coverage options for your specific high-risk rating factors.
• Work towards standard coverage: Depending on your reason for needing high-risk insurance, you may be able to leave high-risk coverage behind by avoiding tickets and accidents, improving your credit score or simply waiting for your teen to get some years of driving experience under their belt. Speaking with a licensed insurance agent may help you qualify for standard coverage sooner.

Best auto insurance companies for high-risk drivers

To help you find the best coverage as a high-risk driver, Bankrate analyzed average annual full coverage premiums from data provided by Quadrant Information Services. We broke down rates from the largest car insurance companies in the nation into four categories: drivers with clean driving records, drivers with one at-fault accident, drivers with one speeding ticket conviction and drivers with a DUI conviction. We also reviewed each company’s coverage offerings, available discounts, policy features and third-party scores to help you get a well-rounded view of each provider.

If you need high-risk car insurance, keep in mind that you will likely pay more for coverage than drivers with clean records. The following companies offer competitive average car insurance rates and solid coverage options, but you can see from the table below that average prices increase across the board if you have an incident on your driving record.

Average annual full coverage premiums by driving incident

Who is a high-risk driver?

A high-risk driver can be anyone who has a significantly greater likelihood of filing a car insurance claim. There is no standard industry definition for high-risk applicants, but factors that may cause an insurance company to view you as a high-risk driver include:

• Age: Teens and young adults are generally less experienced than older drivers, which leads to a higher accident rate. However, Hawaii and Massachusetts do not use age as an auto insurance rating factor, so young drivers in these states shouldn’t be considered high-risk unless there are other factors at play.
• Traffic violations: One or more tickets for incidents like speeding or disregarding traffic signals may increase your premiums.
• At-fault accidents: An at-fault accident may indicate to an insurance company that you are more likely to cause another in the future.
• DUI/DWI convictions: DUIs and DWIs are serious infractions and usually come with a host of repercussions. If you have a DUI conviction, you can typically expect to pay significantly more for car insurance.
• Reckless driving: Reckless driving convictions — such as for running a red light or weaving through traffic — could mean you are more likely to cause an accident, so insurance companies will likely charge you more to compensate for the greater risk.
• Poor credit: In most states, your credit history can be used as a car insurance rating factor. Drivers with bad credit-based insurance scores are statistically more likely to file claims, so insurance carriers may charge more. California, Hawaii and Massachusetts do not permit credit to be used as a rating factor. While Michigan does not allow credit scores to be used as a factor in calculating premiums, it does allow insurers to use some of the data that contributes to a consumer’s credit score.
• Lapses in coverage: Car insurance is legally required in almost every state. If you let your car insurance policy lapse, you may be considered high-risk when purchasing a new policy.

Not all of these factors are created equal. A single DUI or reckless driving conviction will most likely designate you a high-risk driver, but if you have just one minor traffic violation or at-fault accident, you will likely not fall into this category yet. Additionally, each car insurance company has its own calculation for high-risk drivers.

How much is car insurance for high-risk drivers?

If you are considered a high-risk driver, you are likely going to pay higher insurance costs. However, the amount you will pay varies by driver, state and insurance company. Insurance companies weigh some risks more heavily than others. The best way to know how much you’ll pay for car insurance is to get quotes from several providers.

Tips for safe driving

The most effective way to prevent being categorized as a high-risk driver may be to avoid accidents and moving violations by practicing safe driving habits. Good drivers tend to pay lower rates because they have a lower risk of filing a claim. Some tips for driving more safely include:

• Follow posted speed limits. Speeding is a risky driving habit that can lead to accidents. Driving the speed limit could reduce your risk.
• Avoid accelerating or braking quickly. While you may need to react quickly to avoid potentially dangerous situations, a pattern of rapid accelerations or braking can indicate reckless behavior.
• Limit distractions. Placing your cell phone out of reach, turning down your music to a reasonable level, using hands-free devices and avoiding multi-tasking while driving can help you stay focused on the road.
• Avoid adverse conditions. While it’s probably not possible to always avoid driving in heavy traffic, bad weather, or late at night or early in the morning, you might lower your risk of being in an accident if you can avoid hazardous road conditions.
• Keep your insurance current. If you let your insurance coverage lapse and you get pulled over, you may get a citation along with a fine. If you already have infractions on your license, your vehicle may be impounded, your license may be suspended or both.

Many states have defensive driving classes for both teens and adults. If you think you could brush up on your safe driving skills, you might want to consider enrolling. Your insurance carrier might even give you a discount for passing the course, but be sure to check into this before signing up for a class. Most companies that offer this discount have a list of approved classes. Some states will also remove points from your driver’s license for successful completion of a state-approved defensive driving course, so you may want to check your state resources.

Drivers looking to improve their habits behind the wheel and save on their car insurance premiums may be interested in telematics programs. These programs use an app or device that tracks your driving behavior and encourages safer driving by providing discounts to policyholders who practice safe driving habits. Some carriers even provide scorecards to let you know what categories you excel in and which could use a little help. Before you sign up for a program, you may want to learn whether your insurer reserves the right to raise your rates depending on the data it collects.

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