Finding Auto Insurance: Bad Records, Good Options

If you have a history of speeding tickets, accidents, DUIs, or other moving violations, it can be challenging to find affordable auto insurance. However, some companies offer competitive rates to drivers with bad records. Generally, people with poor driving records face higher car insurance costs, but there are steps you can take to find more affordable coverage. This includes comparing quotes from different insurers, taking advantage of discounts, improving your driving habits, and considering non-standard insurers or your state's assigned-risk insurance pool.

How to get car insurance with a bad driving record

Having a bad driving record can make it challenging to find affordable car insurance. However, it is not impossible. Here are some tips to help you get car insurance with a bad driving record:

Understand Your Situation

First, take stock of your driving record. Request a copy of your driving record from your local Department of Motor Vehicles (DMV) to understand what violations you have and how they may impact your insurance premiums. Once you know what's on your record, you can also address any discrepancies or errors.

Compare Quotes from Different Insurers

Comparison shopping is crucial when looking for car insurance with a bad driving record. Get quotes from multiple insurers and compare them to find the best rate that matches your driving record. Be honest when providing information to ensure the quotes you receive are valid.

Consider Non-Standard Insurers

If you're struggling to find coverage from standard insurance companies, look for non-standard insurers that specialise in high-risk car insurance. For example, The General caters to various high-risk drivers, including those with accidents or moving violations on their records.

Check Your State's Assigned-Risk Insurance Pool

If your state has an assigned-risk insurance pool, you can apply for coverage through it. In this case, the state will assign your policy to an insurer who must offer you coverage, but the rates are generally higher.

Explore Pay-Per-Mile or Telematics Insurance

If you don't drive many miles or want to improve your driving skills, consider usage-based insurance options like pay-per-mile or telematics policies. Pay-per-mile coverage charges you only for the miles you drive, while telematics policies often reward good driving with lower rates.

Take Advantage of Discounts

Many insurance companies offer discounts that can help lower your premium, even with a bad driving record. For example, completing a state-approved defensive driving course can show insurers that you're committed to becoming a safer driver. Additionally, if you don't drive frequently, you may be eligible for a low-mileage discount.

Improve Your Credit Score

Improving your credit score can positively impact your auto insurance premiums. Insurers consider drivers with poor credit as riskier, leading to higher insurance costs. By boosting your credit score, you may be able to qualify for lower insurance rates.

Work on Improving Your Driving Record

While this may not provide immediate relief, improving your driving record over time can help reduce the impact of past violations on your insurance rates. Avoid further infractions, attend traffic school, and practice safe driving habits to demonstrate your commitment to becoming a safer driver.

How a bad driving record affects your insurance rates

A bad driving record will generally lead to higher insurance rates, as insurance companies consider drivers with a history of violations to be more likely to file claims in the future. The more violations or negative marks on a driving record, the worse the record is deemed to be.

In the US, each state has a different system for tracking driving violations. Many use a points system, where the severity of the violation is reflected in the number of points added to a driver's record. If a driver accumulates a certain number of points within a given period, their license will be suspended. For example, in California, a driver's license will be suspended if they accumulate 4 points in a year, 6 points in 2 years, or 8 points in 3 years.

The impact of a bad driving record on insurance rates varies depending on the type and number of infractions. Minor violations, such as speeding or running a stop sign, typically result in a minor increase in insurance premiums of around 23%. More serious violations, such as driving under the influence (DUI), can lead to much higher increases in insurance rates, often by 83%. A DUI conviction can also result in a driver being classified as high-risk, which further increases insurance costs. High-risk drivers typically pay 35% to 69% more for insurance than those who are not considered high-risk.

The length of time that violations stay on a driving record also varies. Speeding tickets and other moving violations typically remain on a record for three years, while DUI convictions can stay on a person's record for up to ten years. At-fault collisions are reflected for three years but can affect insurance costs for up to five years.

Insurance companies typically only factor in accidents and violations from the past three years when calculating insurance rates. However, DUI convictions can affect insurance rates for up to five years.

To improve their driving record and lower insurance premiums, drivers can consider taking a driver safety course, improving their credit score, using public transportation, and shopping around for insurance.

How to keep car insurance affordable

Keeping car insurance affordable with a bad driving record can be challenging, but it's not impossible. Here are some strategies to help you keep your car insurance costs down:

Understand Your Situation

First, take stock of your driving record by requesting a copy from your local Department of Motor Vehicles (DMV). This will help you understand how your record affects your insurance premiums and allow you to address any discrepancies. Once a violation is no longer on your record, inform your insurance company to ensure they're not considering it when setting your rate.

Compare Insurance Quotes

Comparison shopping is crucial to finding affordable insurance for bad drivers. Get at least three quotes from different insurers, being honest about your driving history, to find the best rate for your situation. Remember to compare the same types of coverage and consider using an insurance broker or agent if the process feels overwhelming.

Choose the Right Insurance Company

Some insurance companies cater to high-risk drivers and offer more affordable rates. For example, GEICO, State Farm, and Travelers are known for providing lower rates for drivers with accidents or tickets on their records. Additionally, State Farm and Progressive have been recommended as the most affordable options for high-risk drivers.

Reduce Your Coverage

If you own your car outright and it makes sense for your insurance needs, consider reducing your comprehensive and collision coverage to lower your premiums. However, this may not be an option if you lease your car or have a car loan, as lenders typically require full coverage insurance.

Maintain Continuous Coverage

Avoid gaps in your insurance coverage, as they can lead to higher premiums. Even if you're between cars, consider a non-owner policy to maintain your insurance history and demonstrate responsibility to insurers.

Trade In Your Vehicle

If you have a newer, more expensive vehicle, consider trading it in for a cheaper model with better safety features. This can help lower your insurance premiums and maintenance costs. However, avoid high-performance cars or sports modifications, as these can increase your premiums.

Raise Your Deductible

Increasing your deductible can keep your insurance premium low, but be aware that you'll have to pay more out of pocket if an accident occurs. Use an insurance app to determine the right deductible for your financial situation.

Take Advantage of Discounts

Look for insurance companies that offer discounts, such as those for completing a defensive driving course, having safety features in your car, or being a low-mileage driver. These discounts can help offset the higher premiums resulting from your bad driving record.

Improve Your Credit Score

Improving your credit score can positively impact your insurance premiums, as insurers consider drivers with higher credit scores less risky. Pay your bills on time, reduce credit card debt, and avoid opening new credit card accounts to boost your score.

Work on Improving Your Driving Record

While this won't provide immediate relief, committing to safe driving habits and avoiding further infractions will benefit you in the long run. Attend traffic school, practice good driving habits, and address any issues that contributed to your previous violations.

The cheapest car insurance companies for bad drivers

The cost of car insurance is rising, and it can be challenging to find an affordable policy that meets your coverage needs. The cheapest car insurance companies for bad drivers will vary depending on the type of violation. Here is a list of the cheapest car insurance companies for various types of driving violations:

• After a DUI: Progressive is the cheapest option for drivers with a DUI on their record, with an average rate of $2,296.
• After a Speeding Ticket: Erie Insurance offers the cheapest rates for drivers with a speeding ticket, with an average rate of $1,765.
• After an Accident: Erie Insurance is the cheapest option for drivers who have been in an accident, with an average rate of $1,964.
• Poor Credit: Nationwide offers the lowest rates for drivers with poor credit, with an average rate of $2,268.
• Minimum Coverage: Erie Insurance provides the cheapest minimum coverage, with an average rate of $1,483.
• High Coverage: Erie Insurance also offers the cheapest high coverage, with an average rate of $1,574.

It is important to note that these rates may vary depending on other factors such as age, location, and driving history. Additionally, some companies, like USAA, offer exclusive policies to military members, veterans, and their families, resulting in lower rates. When searching for the cheapest car insurance, it is recommended to shop around and compare quotes from multiple companies to find the best option for your specific situation.

How to lower your premium as a high-risk driver

High-risk drivers are a greater liability to insurers as they are more likely to file claims. They usually face higher premiums and can even be denied coverage. Here are some tips to lower your insurance cost as a high-risk driver:

• Shop around and compare: Use an online broker or work with an independent agent to find an insurance company that offers the best coverage and the most competitive rates.
• Stack discounts: Discounts can have a big impact on your premiums. Insurance providers typically list the discounts they offer on their websites. Contact your insurance agent to see if you qualify for any discount opportunities.
• Bundle insurance policies: Many companies offer discounts for bundling your policies, such as your home and auto insurance. You may also qualify for a discount for insuring multiple vehicles.
• Raise deductibles: The higher the deductible, the lower your monthly rate. However, a high deductible is not the best option for everyone. If you can’t afford to pay more out of pocket when your car needs repairs, stick with the lower deductible.
• Be a safe driver: Many providers offer discounts for good driving behaviour tracked through smart devices. Insurers also typically offer a discount for taking a defensive driving course, especially if you have a poor driving history. Driving safely until your record is clean can help lower your risk.
• Drive less: Putting fewer miles on your vehicle can decrease your premiums. Consider biking, taking public transportation, and using ride-sharing services.
• Downsize your vehicle: Trading down to a smaller car can lower your monthly car payments and reduce your insurance payments. Larger cars often result in higher premiums. Many insurers also offer discounts for electric or hybrid cars.
• Have a good credit score: In states where credit-based insurance is applicable, having a good credit score (above 670) can reduce your insurance premiums. For policyholders with poor credit history, meeting the minimum monthly payments can affect their premiums.
• Install auto safety devices: Safety features like airbags and antilock brakes can save you money on your policy. Let your insurer know if you have any, and inquire about discount opportunities.
• Shop annually: Many policyholders make the mistake of keeping their insurance providers and not shopping annually. You may miss out on saving opportunities and lower rates than competitor companies offer by doing this.

Frequently asked questions