High-Risk Auto Insurance At 25: What You Need To Know

High-risk auto insurance is a type of insurance for drivers who are more likely to file a claim, get in an accident, or default on payment. These drivers are considered high-risk due to factors such as age, driving history, and credit score. While there is no standard definition of a high-risk driver, they are generally considered to be young or new drivers, those with a history of accidents or violations, and those with poor credit. High-risk auto insurance is typically more expensive than standard insurance and can be challenging to obtain, but some companies specialize in providing coverage for these drivers.

High-risk insurance for young drivers

Young drivers are considered high-risk by insurance companies due to their lack of driving experience, which research has shown makes them more likely to get into car accidents. Auto insurance rates for young adults are determined by factors such as age, vehicle make and model, credit, gender, location, mileage, and types and amount of coverage.

High-risk auto insurance is typically the same as any other auto insurance policy but will cost more because insurers think the driver is more likely to make a claim or be in a crash. High-risk insurance, or "Non-Standard" insurance, is much more common today than it was a decade ago, with more people being categorized as high-risk.

Young or first-time drivers are considered high-risk and will pay more for car insurance because their lack of experience may put them at greater risk for causing accidents than older drivers. They are also more likely to file a claim because they are typically not as financially established as older drivers.

Young drivers with a history of traffic violations, such as speeding tickets or DUIs, will also be considered high-risk and will face higher insurance rates. Insurance companies may even deny coverage to high-risk drivers, in which case nonstandard insurance companies or state-sponsored auto insurance plans may be options, although these tend to charge higher rates.

While being considered high-risk can increase insurance rates significantly, there are ways to lower your risk profile and insurance costs. Improving your credit score, taking defensive driving classes, and maintaining a clean driving record over time can help reduce your risk and lower your insurance rates.

Several insurance companies offer competitive rates for young drivers, including Progressive, Geico, Auto-Owners, State Farm, and Nationwide, which offer low average premiums and robust coverage options. These companies also provide various discounts that young drivers may qualify for, such as good student discounts and usage-based discounts.

High-risk insurance for drivers with DUI/DWI convictions

A DUI conviction can have serious consequences for your auto insurance. A DUI is considered a major marker of driver risk by insurance companies, and as a result, your insurance premiums are likely to increase substantially. A driver with a single DUI conviction pays an average of $4,532 per year for full coverage, 95% more than drivers with clean records pay for the same coverage.

Insurance Requirements after a DUI

In most states, drivers with a DUI may be required to file an SR-22 form, which states that you are maintaining minimum liability insurance coverage. This form is typically filed by your insurance company and allows the DMV to reinstate your license after suspension. Not all insurers offer SR-22 insurance, so you may need to switch to a different carrier. In Florida and Virginia, you will need to file an FR-44 certification instead.

Finding Cheap Insurance with a DUI

Finding affordable insurance after a DUI can be challenging, but there are some strategies that can help:

• Maintain a clean driving record: Avoiding future tickets and accidents may help lower your rates over time.
• Bundle your policies: Combining your auto and home insurance or auto and renters insurance can often result in significant discounts.
• Increase your deductible: Raising your deductible on collision and comprehensive coverage can lower your monthly payments, but you will have to pay more out of pocket if you file a claim.
• Adjust your payment method: Opting for paperless billing, automatic billing, or paying your premium in full may result in discounts.
• Shop around and compare rates: Different insurance carriers have varying underwriting guidelines, so comparing quotes can help you find the lowest rates for your situation.

Best Insurance Companies for DUI Convictions

Some insurance companies specialize in providing coverage for high-risk drivers and may offer more competitive rates. Here are some options to consider:

• Progressive: Progressive insures drivers with a DUI violation and can file an SR-22 immediately if necessary. They typically raise rates by a countrywide average of about 13% after one DUI.
• The General: This company specializes in high-risk drivers and offers relatively affordable rates, even for those with multiple DUIs. They also include the SR-22 form with your policy if needed.
• Erie: Erie offers outstanding customer service and is a good option if you live in one of the 12 states and D.C. where it sells car insurance. Their full coverage insurance after a DUI costs $181 per month on average.
• State Farm: State Farm provides the lowest rates for DUI offenders in Florida and Georgia.
• Mercury: Mercury is the best insurance company for DUI offenders in California, offering rates that are 28% cheaper than the state average.

It's important to shop around and compare rates from multiple companies to find the best coverage and rates for your specific situation.

High-risk insurance for drivers with multiple accidents

High-risk car insurance is typically the same as a standard auto insurance policy but is more expensive because insurers think you are more likely to make a claim or have one made against you. This is usually due to multiple accidents or traffic violations, a DUI, or another major violation.

High-risk drivers are also more likely to be refused coverage by insurance companies, as they are deemed more likely to file claims. Data suggests that drivers who are younger, have bad credit, or live in certain ZIP codes are also more likely to file a claim or have one filed against them.

High-risk drivers will almost always pay higher insurance rates and have fewer choices of car insurance companies. However, there are some companies that specialize in high-risk insurance, and there are also state-assigned risk insurance plans for drivers who are unable to get coverage elsewhere.

How to get cheap high-risk insurance

• Increase your deductible.
• Complete a safe driving course.
• Improve your credit score.
• Shop around for coverage.

High-risk insurance companies

• State Farm
• USAA
• Nationwide
• Geico
• Progressive
• Travelers

High-risk insurance for drivers with speeding tickets

If you have a history of speeding tickets, insurance companies will consider you a high-risk driver. This is because there is a link between speeding and an increase in auto accident claims.

High-risk car insurance is typically the same as any other auto insurance policy, but it will cost more because insurers think you are more likely to make a claim. A speeding ticket can increase your insurance rates by an average of $385 per year, and drivers with a history of speeding tickets can expect to pay around $3,032 per year for car insurance.

If you're a high-risk driver, it's important to shop around for car insurance. Some insurers impose much bigger surcharges for speeding tickets than others. Geico, for example, doesn't penalize drivers with speeding tickets as much as many other insurers, and offers many discount opportunities to reduce premiums. Progressive is another good option, as it offers an SR-22 form for new and existing customers, which is sometimes required after a speeding ticket.

High-risk drivers should also consider taking a defensive driving course, as some insurers offer discounts for drivers who complete these programs.

High-risk insurance for drivers with poor credit scores

Several factors can contribute to a driver being deemed high-risk, including a history of traffic violations, accidents, DUI/DWI convictions, and poor credit scores. While a poor credit score alone may not be enough to classify someone as a high-risk driver, it can be a contributing factor when combined with other issues.

High-risk drivers often face higher insurance rates or may even be denied coverage by some companies. However, there are insurance providers that specialize in offering coverage to high-risk drivers, including those with poor credit scores. These are known as non-standard insurance companies. Examples of such companies include The General, Safe Auto, and National General.

High-risk drivers can also explore state-sponsored auto insurance plans, which guarantee coverage for high-risk drivers who cannot obtain insurance through the voluntary market. These plans, however, tend to have very high rates.

To find affordable high-risk auto insurance, it is recommended to get quotes from multiple insurers, both standard and non-standard, and compare rates and coverage options. Improving one's credit score and bundling insurance policies can also help lower insurance premiums.

Additionally, taking a defensive driving course, raising one's deductible, and learning when to file collision claims can help high-risk drivers reduce their insurance costs.

Frequently asked questions