Bad Driving Record? Get Insured

If you have a bad driving record, you may be worried about finding affordable car insurance. While it's true that insurance companies consider drivers with a history of violations to be high-risk, and therefore charge them higher premiums, it is still possible to find good coverage at a reasonable price.

The key to finding affordable car insurance with a bad driving record is to shop around and compare quotes from multiple insurance companies.

Compare quotes from different insurers

Comparing quotes from different insurers is a crucial step in finding affordable car insurance with a bad driving record. Here are some tips to help you get started:

• Get multiple quotes: Request quotes from several insurance companies to find the best rates and coverage options for your situation. The number of quotes you should get varies, but generally aim for at least three. It's important to be honest and provide accurate information when requesting quotes, as the insurance company will check your driving history.
• Understand your needs: Different insurers will offer different rates and coverage options, so it's important to know what you need before comparing. Consider factors such as the type of car you drive, the state you live in, your age, and your driving record.
• Compare apples to apples: When comparing quotes, make sure you understand the coverage offered and the limits of the policy. Pay attention to factors such as liability coverage, collision coverage, comprehensive coverage, and any additional options or discounts offered.
• Consider using a broker or agent: If you find the process overwhelming, consider working with an insurance broker or agent. They can help you navigate the different options and find the best coverage for your specific situation. They may also have access to policies and discounts that you wouldn't find on your own.
• Look for specialized insurers: If you have a particularly bad driving record, consider looking for insurers that specialize in high-risk drivers. These companies may be more forgiving and offer more affordable rates. Examples include The General Insurance and Direct General Insurance.
• Be patient and persistent: Finding affordable car insurance with a bad driving record may take time and effort. Don't be discouraged if you don't find the perfect policy right away. Keep shopping around and comparing quotes until you find the right coverage at the right price.

Understand how violations impact insurance rates

The impact of driving violations on insurance rates varies depending on the type and severity of the violation, the driver's location, and their insurance provider. Here's an in-depth look at how violations can affect insurance rates:

Minor Violations

Minor traffic violations, such as slightly exceeding the speed limit, failing to come to a complete stop, or making improper turns, are common mistakes that can accumulate on a driving record. While a single minor violation might not cause a significant increase in insurance rates, multiple infractions signal to insurers that the driver is a higher risk, leading to more substantial rate increases. These violations can gradually increase insurance premiums over time.

Major Violations

Major violations, such as driving under the influence (DUI), driving while intoxicated (DWI), reckless driving, or leaving the scene of an accident (hit and run), are considered serious offenses that indicate risky driving behaviors. These violations result in legal repercussions and significant increases in insurance rates. A DUI/DWI, for example, can double or even triple insurance premiums and remain on a driving record for years, affecting rates for an extended period.

Accumulation of Points

Many states use a point system to track driving violations and infractions. Each type of violation is assigned a certain number of points, which accumulate on the driver's record. As points accumulate, insurance companies view this as an indication of risky driving behavior and may increase insurance premiums accordingly. Some states offer ways to reduce points, such as by completing a defensive driving course, but the best strategy is to avoid accumulating points in the first place.

Duration of Impact

The impact of traffic violations on insurance rates is not permanent but can be long-lasting. Minor violations typically affect insurance rates for three to five years, while major violations can impact rates for five years or more. DUI/DWI convictions can remain on a driving record and influence insurance rates for up to a decade in some states. The timeline also depends on when the insurance company reviews the driving record, which is usually upon policy renewal or when applying for a new policy.

Impact on High-Risk Drivers

Violations can place drivers in the high-risk category, resulting in higher insurance premiums. The weight given to violations varies among insurance carriers and is partially based on state laws. Some insurers charge much less in premiums for certain offenses, so selecting the right carrier is crucial. Comparison shopping and taking advantage of discounts can help high-risk drivers find more affordable coverage.

Understanding Your Situation

It's important for drivers to review their driving records and understand how violations impact their insurance rates. Obtaining a copy of their driving record from the local Department of Motor Vehicles (DMV) can help identify discrepancies and errors. Once violations are no longer part of the record, usually after three years, drivers should inform their insurance company to ensure their rates are adjusted accordingly.

Take a defensive driving course

Taking a defensive driving course is a great way to improve your driving skills and knowledge, and it can also help you get auto insurance with a bad driving record. Defensive driving courses teach you how to deal with challenging situations on the road, such as difficult weather, road conditions, and hazardous drivers. They also help you become a safer and more responsible driver by teaching you how to avoid accidents, hazards, and other problems on the road.

Completing a defensive driving course can lead to significant benefits, including:

• Reduced insurance rates: Insurance companies may offer lower premiums to drivers who have completed a defensive driving course. This is because insurers recognize your commitment to becoming a safer driver and reward you for taking proactive steps to improve your driving skills.
• Points off your license: Depending on your state, you may be able to get points removed from your driving record by completing a defensive driving course. This can help improve your overall record and reduce the impact of past violations on your insurance rates.
• Dismissal of traffic tickets: In some cases, taking a defensive driving course can even lead to the dismissal of traffic tickets. This can help you avoid fines and prevent the tickets from appearing on your driving record, keeping your insurance rates from increasing.
• Improved safety: The primary benefit of a defensive driving course is that it makes you a safer driver. You will learn valuable skills to help you anticipate and react to potential hazards on the road, reducing the risk of accidents and keeping you and other drivers secure.

Defensive driving courses are typically six hours long and can be taken in person or online. The cost of the course is generally affordable, and you will receive a certificate upon completion, which you can then provide to your insurance company to demonstrate your achievement.

Improve your credit score

Improving your credit score takes time and effort, and there's no one-size-fits-all solution. Here are some strategies to improve your credit score:

• Pay your loans and bills on time: Payment history is the biggest factor in calculating your credit score. Late or missed payments can have a significant impact on your score. Set up automatic payments or due-date alerts to help you pay on time.
• Keep your credit utilization rate low: Credit utilization refers to the amount of revolving credit you're using divided by your total available credit. Aim to use less than 30% of your credit limit, with lower being better. You can reduce your utilization rate by paying down balances or asking for a credit limit increase.
• Don't close your oldest credit accounts: The length of your credit history is important, and closing old accounts can shorten it. Even if you no longer use your oldest credit card, consider keeping it open and active by using it occasionally or putting a small recurring bill on it.
• Diversify your credit mix: Lenders like to see a variety of account types, such as credit cards, student loans, and mortgages. Maintaining a mix of credit types, along with a solid payment history, can demonstrate your understanding of credit fundamentals.
• Limit new credit applications: Each time you apply for new credit, a hard inquiry is recorded on your credit report, which can negatively impact your score. Only apply for new credit when necessary, and consider whether you can pre-qualify with a soft credit check instead.
• Dispute inaccurate information: Errors on your credit report, such as late payments or high credit card balances, can pull down your score. You're entitled to free weekly credit reports, so review them regularly and dispute any inaccuracies.
• Use a secured credit card: Secured credit cards require a cash deposit upfront, which serves as your credit limit. By making on-time payments, you can build a positive credit history.
• Get credit for rent and utility payments: Services like Experian Boost and RentTrack can help you get credit for on-time rent and utility payments, which can improve your score.
• Consider credit counselling: If you're struggling with significant debt, credit counselling services can provide guidance and support to help you manage your debt and establish better credit habits.

Research non-standard insurers

If you have a bad driving record and are struggling to find an insurance company that will cover you, you may need to look into non-standard insurers. These are companies that specialise in providing insurance to high-risk drivers.

• The General: Specialises in covering high-risk drivers, from those who have never been insured before to those with accidents or moving violations on their record.
• The General Automobile Insurance Services Inc.: Writes auto insurance through affiliated companies and offers other lines of business through affiliated and unaffiliated partners.
• Americor: Offers lower fees than some competitors.
• Direct Auto: Offers lower rates for drivers with a history of accidents or tickets.
• Orion Indemnity Company: Offers lower rates for drivers with a history of accidents or tickets.
• Anchor: Offers lower rates for drivers with a history of accidents or tickets.
• Just Insure: Offers lower rates for drivers with a history of accidents or tickets.
• Certainly: Offers lower rates for drivers with a history of accidents or tickets.
• Freedom National: Offers lower rates for drivers with a history of accidents or tickets.
• Sun Coast: Offers lower rates for drivers with a history of accidents or tickets.
• GEICO: Offers some of the lowest rates for drivers with accidents or tickets on their records. Also offers accident forgiveness and various discounts.
• State Farm: Offers some of the lowest rates for drivers with a DUI or DWI on their record. Also offers accident forgiveness and various discounts.
• Travelers: Offers one of the best options for affordable coverage if you've received a speeding ticket.
• Commonwealth Casualty: Offers lower rates for drivers with a history of accidents or tickets.
• COUNTRY Financial: Offers some of the lowest rates for drivers with bad records.
• NJM: Offers some of the lowest rates for drivers with bad records.
• Auto-Owners: Offers some of the lowest rates for drivers with bad records.

Other Options

If you're still struggling to find coverage, there are a few other options:

• Check your state's assigned-risk insurance pool: If your state has an assigned-risk pool, every insurer operating in the state is required to participate. You will be assigned a policy from a participating insurer, but rates will generally be higher.
• Pay-per-mile or telematics insurance: If you don't drive many miles, or are focused on improving your driving skills, usage-based insurance may be a good option.
• Contact a broker or agent: If you have a complex driving history, a professional may be able to help you explore your options and speak to an underwriting department on your behalf.
• Compare quotes from multiple insurers: Comparison shopping is a good way to find lower rates.

Frequently asked questions