Haris Ashley
High-risk drivers are often charged some of the highest insurance rates, with a single at-fault accident causing premiums to spike by 45%. However, there are a variety of options available for high-risk drivers seeking affordable insurance coverage. While nonstandard insurers, which provide insurance for high-risk drivers, tend to charge higher rates, some companies like The General pride themselves on offering affordable coverage. Other standard insurance companies like Erie, Progressive, and USAA also offer competitive rates for high-risk drivers. Ultimately, the cheapest insurance option for high-risk drivers will depend on their driving record, age, and coverage needs.
| Characteristics | Values |
|---|---|
| Cheapest insurance companies for high-risk drivers | State Farm, Erie, Geico, Progressive, USAA, Dairyland, Nationwide, Bristol West |
| Factors that determine high-risk status | Driving record, age, coverage needs, credit score, vehicle type, location |
| High-risk driver profiles | Teens, seniors, drivers with accidents, speeding tickets, DUIs, or poor credit |
| Ways to reduce insurance rates | Defensive driving course, adding new drivers to a family policy, improving credit score, proving safe driving over time |
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What You'll Learn
Cheapest insurance companies for high-risk drivers
High-risk drivers are often faced with higher insurance rates than standard drivers, but there are still ways to find the cheapest insurance companies for this demographic. High-risk drivers are classified as those who have a higher likelihood of making a claim or being in a crash than a typical driver. This includes drivers who are young, elderly, have multiple tickets or accidents on their record, have a history of traffic violations, or have allowed their insurance to lapse. Additionally, drivers with poor credit are also considered high-risk, as insurers have observed a correlation between poor credit and risky driving behaviour.
The cheapest insurance companies for high-risk drivers include State Farm, Erie, Geico, Progressive, and USAA, which offer some of the lowest rates and best coverage options for those with accidents, DUI convictions, or other blemishes on their record. For instance, Progressive offers low-cost rates for drivers with DUIs, with rates increasing by only 24%, compared to nearly double at other insurance companies. They also offer competitive rates for other high-risk drivers, such as those with speeding tickets or bad credit.
Erie is another insurance company with some of the industry's lowest premiums in several high-risk situations, including drivers with at-fault accidents on their record. Their rate lock feature prevents rates from rising, even if a claim is filed. Dairyland is another insurance company that specializes in high-risk drivers, offering policies in 38 states and catering to drivers with low or limited credit history.
For military families, USAA provides outstanding value, with specialized discounts of approximately 15% below typical high-risk rates for service members. They also offer accident forgiveness and new car replacement, as well as non-owner insurance for high-risk drivers who don't own a car but need car insurance.
It is important to note that insurance rates for high-risk drivers can vary depending on state and company, and comparing rates from multiple insurers is the best way to find the cheapest policy. Additionally, taking a defensive driving course can help lower rates, and adding new drivers to a family policy can provide cheaper insurance coverage for young drivers.
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How to get cheaper insurance as a high-risk driver
High-risk drivers are those who insurance companies believe are more likely to make a claim or be involved in a crash than the average driver. This includes drivers who are young, elderly, have multiple tickets or accidents on their record, or have allowed their insurance to lapse. Insurance companies evaluate different risk factors when setting rates, and premiums vary significantly based on specific situations.
Shop around and compare rates
High-risk drivers can find the cheapest insurance rates by shopping around and comparing rates from multiple insurers. This can be done using online tools such as MoneyGeek's car insurance calculator, which provides customized estimates from multiple providers. It's worth noting that not every "high-risk driver" has a bad driving record, and some drivers may be classified as high-risk due to factors such as age or credit score.
Consider non-standard insurers
If you're unable to get coverage from a mainstream or standard insurance company, consider a non-standard insurer that specializes in high-risk drivers. These companies typically charge higher rates and may have worse customer service, but they can provide coverage for drivers who are unable to find policies from standard companies.
Look for companies with good high-risk driver rates
Some insurance companies are known for offering competitive rates to high-risk drivers. These include USAA, which provides specialized discounts for military personnel and federal employees, Erie, which offers some of the lowest premiums in several high-risk situations, and Progressive, which offers low rates for drivers with DUIs and other violations.
Improve your driving record
Over time, as you prove to the insurance company that you're a responsible driver, your rates should decrease. Taking a defensive driving course can help lower your rates, even if you have points on your license. Additionally, avoiding lapses in coverage can help, as letting your insurance lapse can result in higher rates when you reapply.
Address specific issues
Understanding what places you in the high-risk category can help you address specific issues. For example, improving your credit score can lead to lower insurance rates, as insurers have linked poor credit to risky driving behavior. Similarly, if you have a history of traffic violations, consider taking a driver retraining course to demonstrate improved driving behavior.
Remember, being a high-risk driver doesn't last forever, and your rates will improve over time as you maintain a safe driving record and address the factors that contributed to your high-risk status.
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What makes a driver high-risk
The term "high-risk driver" can vary depending on the insurance company and its unique underwriting processes and internal protocols. However, there are several common factors that contribute to a driver being considered high-risk.
One of the most significant factors is a history of car accidents, particularly those that are deemed to be the driver's fault. This indicates a higher likelihood of future accidents and insurance claims, which insurers want to avoid. Speeding tickets and convictions, especially multiple occurrences, are also a major contributor to high-risk status.
Driving under the influence (DUI) of alcohol or other substances is a serious offense and is heavily considered when assessing driver risk. A DUI conviction can nearly double insurance rates and remains on a driving record for an extended period, affecting insurance premiums for years.
Other factors that can lead to a high-risk classification include poor credit, lapses in insurance coverage, owning a high-performance vehicle, and age. Teenagers and seniors are often considered high-risk due to their increased accident probability. Additionally, residing in an area with a high crime rate can impact a driver's risk status, as there is a greater chance of vehicle damage and subsequent insurance claims.
It's important to note that high-risk status is not permanent. By practicing safe driving habits and maintaining a clean record, drivers can improve their status and reduce their insurance premiums over time.
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How long does high-risk status last
The length of time that a driver is considered high-risk varies depending on the driver's circumstances and the insurance company's policies. Insurance companies generally look at a driver's record for the past three to five years, although this "look-back" period can be longer or shorter in some states. For example, Massachusetts allows insurance companies to look back at ten years of driving records.
Minor traffic violations, such as speeding tickets or single-car accidents, typically remain on a driving record for three years, while major violations like DUIs or fleeing an officer will usually stay on a record for five to ten years. The type of violation and the driver's history will impact how long the high-risk status lasts. For example, a young or elderly driver may no longer be considered high-risk once they gain more driving experience, and a driver with a lapse in coverage may only be considered high-risk for less than a year once they get proper insurance. Additionally, some insurers offer "accident forgiveness," where they won't increase rates after a single at-fault claim.
High-risk drivers may face challenges in finding affordable insurance, as they are deemed more likely to cause accidents or cost insurance companies money. Some companies that offer competitive rates for high-risk drivers include State Farm, Erie, Geico, Progressive, USAA, and Dairyland. These companies take into account various factors, such as driving records, age, and coverage needs, when determining rates. Comparing rates and taking advantage of available programs can help high-risk drivers save up to 40% on annual premiums.
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High-risk insurance for military personnel
High-risk drivers with a military background can find insurance through USAA, which offers specialized discounts for high-risk drivers with military backgrounds or federal employment. USAA insurance is available to active, retired, and reserve military members, as well as their family members, widows, and ex-spouses who have not remarried. USAA provides outstanding value for military families at just $28 per month or $335 annually. The company offers superior financial stability, strong customer satisfaction, and military-specific policy features, including emergency deployment provisions.
Another option for military personnel seeking high-risk insurance is Armed Forces Insurance (AFI), a reciprocal insurance exchange owned by its members. AFI offers a variety of insurance products to veterans, active-duty service members, and their families, as well as employees of the Department of Defense, the National Oceanic and Atmospheric Administration, and the U.S. Public Health Service. AFI is available in all 50 U.S. states and Washington, D.C.
Additionally, Dairyland specializes in insuring drivers with a low credit score or limited credit history, which are factors that can contribute to being classified as a high-risk driver. Dairyland issues SR-22 and FR-44 certificates, which are required for drivers with serious violations.
It's important to note that high-risk insurance rates can vary based on individual circumstances, including driving records, age, and coverage needs. Comparing rates and shopping around can help high-risk drivers find the most affordable options.
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Frequently asked questions
High-risk drivers are those who insurance companies think are more likely to make a claim or be in a crash than a typical driver. This includes drivers who have tickets, at-fault accidents, DUI convictions, allowed their coverage to lapse, are newly licensed, or have poor credit.
The cheapest insurance for high-risk drivers depends on a variety of factors, including driving record, age, and coverage needs. It is recommended to shop around and compare rates from multiple insurers. Some companies that offer good rates for high-risk drivers include State Farm, Erie, Geico, Progressive, USAA, Nationwide, Dairyland, and The General.
A DUI on your record can significantly increase your insurance rates, sometimes even doubling them. However, companies like Progressive offer lower rates for drivers with DUIs, with an increase of only 24%.
Insurers have linked poor credit history to risky driving behaviour, resulting in higher insurance rates for individuals with poor credit. However, some states ban insurers from using credit history when calculating rates, and there are companies that don't perform credit checks.
Being classified as a high-risk driver is not permanent. As you prove to be a safe and responsible driver over time, your rates will gradually decrease. Typically, high-risk drivers start seeing lower rates after a year or two.
