High-Risk Auto Insurance: Getting Covered Despite Your Record

If you have a history of accidents, traffic violations, or lack driving experience, you may be deemed a high-risk driver by insurance companies. High-risk drivers are considered more likely to cause accidents and file claims, resulting in higher insurance rates and fewer insurance company options. While finding insurance as a high-risk driver can be challenging, it is not impossible. This article will provide an overview of high-risk auto insurance, factors that contribute to being labelled high-risk, and strategies for obtaining coverage.

High-risk driver profiles

• At-fault or no-fault accidents on their motor vehicle report.
• Traffic violations, including speeding, DUI (Driving Under the Influence), or DWI (Driving While Impaired).
• Multiple comprehensive claims.
• Lack of driving experience, including young or first-time drivers.
• Poor credit history.
• Lapses in insurance coverage.
• Age, with teenagers and seniors often considered higher risk.
• Living in an area with a high rate of accidents, theft, or severe weather.

It's important to note that the criteria for high-risk drivers can vary between insurers, and the label is typically not formally assigned. Drivers with any of these characteristics may face higher insurance premiums or even denial of coverage from certain companies.

Finding high-risk auto insurance

High-risk auto insurance is a special type of policy reserved for drivers who are deemed more likely to cause an accident. This includes drivers with a history of at-fault accidents, speeding tickets, or other violations. While it can be challenging to find insurance for high-risk drivers, it is not impossible. Here are some tips to help you find the right high-risk auto insurance policy:

Understand High-Risk Factors

Firstly, it is important to understand what constitutes a high-risk driver. Insurance companies consider various factors when determining a driver's risk level, including:

• At-fault accidents
• Traffic violations, including speeding tickets, DUIs, or DWIs
• Multiple comprehensive claims
• Lack of driving experience
• Poor credit history
• Gaps or lapses in insurance coverage
• Age and marital status
• Vehicle type and commute distance

Shop Around for Insurance Providers

When seeking high-risk auto insurance, it is essential to shop around and compare rates from multiple insurance companies. Not all insurers offer high-risk policies, and those that do may have varying rates and coverage options. It is worth getting quotes from several major insurance companies before considering non-standard insurers, as the latter tend to have higher prices and worse customer service. Small insurers may be more accommodating than large agencies.

Compare Coverage Options and Customer Service

When choosing a high-risk auto insurance policy, consider not only the price but also the quality of coverage. Review the policy details to understand exactly what is covered and what is not. Additionally, consider the insurance company's customer service reputation and whether they put your needs first.

Improve Your Driving Record and Credit Score

To lower your insurance rates over time, focus on improving your driving record and reducing your risk factors. This includes adopting safer driving habits, such as driving within speed limits and avoiding violations. Improving your credit score can also positively impact your insurance rates, as poor credit history is often considered a risk factor.

Explore State-Sponsored Programs

If you are struggling to find insurance coverage, your state-sponsored auto insurance program may offer an alternative option. These programs are designed to provide coverage to high-risk or non-standard drivers who cannot obtain insurance through traditional means.

High-risk insurance costs

The cost of high-risk insurance also depends on the driver's state of residence, with some states having more affordable options than others. For example, Idaho, Ohio, and Nebraska offer the cheapest rates among the states. In contrast, Nevada, Maryland, West Virginia, and Michigan are among the most expensive states for high-risk insurance.

The severity of driving violations also impacts insurance costs, with multiple accidents or serious violations resulting in higher rates. The type of insurance company also plays a role, with nonstandard insurance companies, which cater to high-risk drivers, often charging higher prices and providing worse customer service than mainstream insurers.

Some insurance companies, like Geico, offer more affordable rates for high-risk drivers, while others, like State Farm, provide a range of discounts to help high-risk drivers manage their insurance costs. Taking steps to improve one's driving record and insurance risk profile, such as completing a defensive driving course or improving one's credit score, can also help reduce high-risk insurance costs over time.

Lowering your risk profile

Your risk profile is determined by a range of factors, from your age, gender, and location to your driving history, insurance coverage, and the type of car you drive. Here are some ways to lower your risk profile and, in turn, your insurance premium:

• Improve your driving record: Minor traffic infractions like speeding will fall off your record within three to five years. More serious violations, such as DUIs, may remain on your record for five to ten years or longer, depending on your state. By driving safely and avoiding violations, you can improve your driving record over time, which will help lower your risk profile.
• Maintain continuous insurance coverage: Gaps in insurance coverage are considered a red flag by insurers, as they indicate a higher risk. Maintaining continuous insurance coverage demonstrates responsible behaviour and can help lower your risk profile.
• Improve your credit score: In states where credit-based insurance is applicable, having a good credit score (typically above 670) can reduce your insurance premiums. A higher credit score indicates lower risk to insurers.
• Choose your vehicle carefully: The type of car you drive can impact your risk profile. Vehicles with poor crash safety test ratings, an increased risk of rollovers, or a high likelihood of being stolen may result in a higher risk profile and insurance premium. Opting for a vehicle with better safety ratings and a lower risk of theft can help lower your risk profile.
• Add safety and security features: Installing safety and security features such as airbags, anti-lock brakes, theft control devices, and alarm systems can make your vehicle safer and more secure, reducing the risk of accidents, theft, or vandalism. This, in turn, can lead to a lower risk profile and insurance premium.
• Improve your driving skills: Taking a defensive driving course can improve your driving skills and make you a safer driver. Insurers often offer discounts to drivers who have completed such courses, which can help lower your insurance premium.
• Reduce your mileage: Driving fewer miles can decrease your risk of accidents and lower your insurance premium. Consider alternative modes of transportation, such as biking, public transportation, or ride-sharing services, to reduce your mileage.
• Bundle your insurance policies: Many insurance companies offer discounts if you bundle your policies, such as combining your home and auto insurance or insuring multiple vehicles with the same company. This can help lower your overall insurance costs and reduce your risk profile.
• Shop around and compare: It's important to compare insurance rates and coverage options from different companies. By using an online broker or working with an independent agent, you may find more competitive rates and better coverage options, ultimately lowering your risk profile and insurance costs.

Non-standard insurers

Non-standard auto insurance is typically more expensive than standard insurance policies, with higher monthly premiums. This is to compensate for the higher risk of a driver making a claim. Some insurers may not even offer coverage to high-risk drivers.

There are several factors that can lead to a driver being placed in the non-standard category, including:

• A history of accidents or traffic violations
• Driving under the influence (DUI)
• Little driving experience
• Poor credit history
• Gaps in insurance coverage
• Driving a high-performance or custom-built car
• Driving a "salvage title" car (a car that has been severely damaged or declared a total loss)
• Living in an area with high rates of theft or vandalism
• Holding a foreign driver's license
• Buying only the minimum liability insurance required in your state

Some major insurance companies that offer non-standard auto insurance include:

• State Farm
• Dairyland
• GEICO
• Acceptance Insurance
• Bristol West (part of Farmers)
• Direct Auto Insurance
• Gainsco (recently acquired by State Farm)
• National General (recently acquired by Allstate)

It is recommended that you get quotes from several major insurance companies before switching to a non-standard insurer, as non-standard companies tend to have higher prices and worse customer service than typical insurers.

Frequently asked questions