How Long Will My Auto Insurance Be High-Risk?

Being a high-risk driver can be stressful, but there are ways to reduce your risk profile and lower your insurance costs. High-risk drivers are typically those with a history of accidents, traffic violations, or a poor insurance or credit record. This can include DUIs, speeding tickets, or simply being a new or inexperienced driver. While these factors may result in higher insurance premiums for three to five years, there are ways to mitigate this. Taking a defensive driving course, improving your credit score, and maintaining a clean driving record can all help lower your risk profile. Shopping around for insurance and taking advantage of discounts can also help reduce costs.

High-risk age groups

Insurance companies consider some drivers high-risk because their age group tends to be involved in more accidents and file more claims than others. Generally, teenagers and seniors pay more for car insurance than drivers of other ages.

Auto insurance costs increase by 92% on average for parents adding a 16-year-old driver to their policy. An 18-year-old on their own policy pays 150% more per year on average for car insurance than a 25-year-old driver.

Teen drivers are young and inexperienced and more likely to crash, so they pay higher car insurance costs. The fatal crash rate per mile driven for 16 to 19-year-old drivers is nearly three times the rate for drivers aged 20 or over, according to the Insurance Institute for Highway Safety.

There is a notable increase in fatal crashes among drivers aged 70 to 74, and the highest rate is for drivers aged 85 and older. Senior drivers aged 70 and older are experienced, but their reaction times are slower, and they are more susceptible to sustaining injuries, resulting in a higher-risk assessment.

Car insurance prices are 34% higher on average for a senior driver aged 80 compared to a driver aged 60. Due to state laws, age is not a factor in calculating auto insurance costs in California, Hawaii, or Massachusetts.

Drivers under the age of 21 or over the age of 70 are often considered high-risk. While some insurers view older drivers as high-risk, The General insurance company views them as experienced drivers who deserve affordable auto insurance policies. Similarly, The General believes that drivers under 21 deserve a fair auto insurance quote, so they work to customise a policy that fits the driver's insurance needs and budget.

Driving experience

In the US, the fatal crash rate per mile driven for 16-19-year-old drivers is nearly three times the rate for drivers aged 20 or over, according to the Insurance Institute for Highway Safety. The crash rate increases again for drivers aged 70 and older, as their reaction times are slower, and they are more susceptible to injuries.

However, the length of time a driver is considered high risk depends on the state and insurance company. Generally, insurance companies only look at a driver's record for the past three to five years, though your state may keep a record of your driving history for longer. For example, in New York, an accident involving intoxicated driving can remain on your record permanently.

Drivers can take steps to lower their premiums as high-risk drivers, such as enrolling in a safe driving course, improving their credit score, and bundling their policies.

High-risk vehicles

Some insurers may consider you a high-risk driver if you have any of the following:

• At-fault or no-fault accidents on your motor vehicle report
• Traffic violations, including a DUI or DWI
• Multiple comprehensive claims
• Lack of driving experience
• No history of auto insurance
• Bad credit rating
• Live in an area where theft and vandalism losses are high
• Own a special or high-performance car

If you are considered a high-risk driver, your insurance premium will be higher than that of a low-risk driver. The amount of risk represented by a driver is subjective and varies per insurer. There is no standard definition for what constitutes a "high-risk driver".

High-risk auto insurance, or "non-standard" insurance, refers to an auto insurance policy that is given to a high-risk driver. This type of insurance is much more common today than it was a decade ago, as more people are now categorized as high-risk.

If you are a high-risk driver, there are still ways to lower your premium. You can take a defensive driving course, improve your credit score, or shop around for insurance providers that cater to high-risk drivers.

Lapses in insurance coverage

If you have a lapse in insurance coverage, your driver's license and registration can be suspended or revoked, and you may be required to pay a fine. In New York, for example, if the registration suspension period is more than 90 days, you must surrender your vehicle registration and plates, and your driver's license will be suspended for the same number of days as the registration suspension. You will also have to pay a $50 license suspension termination fee.

Even one day without coverage can result in a higher car insurance rate, and starting a new policy is usually more expensive than maintaining continuous insurance. At Progressive, you may not be eligible for their Continuous Insurance Discount if you have gone more than one month without insurance.

If your insurance has lapsed, your first step should be to call your previous insurance company to find out how long you've been without coverage. If your policy was cancelled, ask if it can be reinstated. If not, you will need to purchase a new policy as soon as possible.

To avoid a lapse in insurance coverage, it is important to maintain active insurance policies and keep up with payments. If you are having difficulty paying, insurance companies typically offer a grace period for missed payments, and you may be able to set up an automatic payment option to avoid future issues.

Accidents and violations

Traffic violations, such as speeding, typically remain on your driving record for 3-5 years, depending on your state. At-fault accidents, DUI convictions, and other serious violations may be considered for five years or more, depending on your insurer and state. There is no standard definition of what constitutes a "high-risk driver", and the amount of risk represented by a driver is subjective and varies across insurers.

In 2016, the Insurance Information Institute (III) estimated that 63% of accidents were the result of a traffic violation. Some of the most common traffic violations that result in accidents include following too closely, failing to obey signs and signals, and driving under the influence (DUI). These offenses can combine to increase the probability of causing an accident. For example, if a driver runs a red light and another driver is following too closely, the second driver may rear-end the first driver when they suddenly brake. In this case, the driver following too closely would be at fault for the accident, but the driver who ran the red light is most at fault for causing the situation.

If you are a high-risk driver, you can still find insurance companies that offer competitive rates. For example, State Farm, Erie, Geico, Progressive, and USAA have some of the most reasonable rates and best coverage options for drivers in this category. Additionally, you can take steps to lower your premiums as a high-risk driver, such as enrolling in a safe driving course or boosting your credit profile.

Frequently asked questions