Jane Dotson
If you have driving violations, you may be considered a high-risk driver and may have to buy auto insurance at a more expensive rate. While auto insurance is mandated nearly everywhere in the United States, it can be difficult to get a policy if you have a poor driving record. You can expect to pay higher rates until any tickets are removed from your record, with more severe violations, such as a DUI, impacting your insurance rates for much longer.
Insurance companies will check your driving record when you apply for a new policy, when you get a new quote, and when your car insurance is up for renewal. They will also check if you change the level of coverage, change your car, or add an extra driver to the same coverage. If you have a speeding citation or a minor accident during your policy, it is likely to affect your renewal price when your policy expires.
If you have a poor driving record, you can still find auto insurance through a state-assigned risk pool, or a private insurance company that specializes in high-risk drivers.
| Characteristics | Values |
|---|---|
| Difficulty in getting auto insurance | High |
| Reasons for being denied traditional coverage | Poor driving record, lack of driving experience, bad insurance record, bad credit rating, high-risk location, high-performance car |
| Options if denied insurance | Join a state-assigned risk pool, get a policy from a private insurance company that specializes in "high-risk" drivers |
| Ways to become a lower risk for insurers | Take a defensive driving course, drive safely and obey traffic laws, never drink and drive, repair your credit, buy a safe car, take precautions against theft and carjacking |
| How insurance companies check driving records | Using driver's license numbers |
| How far back insurance companies check driving records | Typically 3-5 years, but can be up to 10 years for DUIs |
| Factors that affect insurance rates | Accidents, speeding tickets, at-fault accidents, driver's license points, claims history, driving-related convictions, license suspensions, DUIs, location, employment status, extra driving courses, vehicle storage |
What You'll Learn
High-risk auto insurance
If you have driving violations, you may be considered a high-risk driver by insurance companies. This means that you may find it difficult to obtain car insurance, and when you do, you will likely pay a higher premium.
Who is a high-risk driver?
Insurance companies consider drivers with a high probability of accidents as high-risk. The criteria for being a high-risk driver vary across insurers, but common reasons for being classified as one include:
- A history of accidents or violations, including DUIs or DWIs
- Multiple comprehensive claims
- Lack of driving experience
- No history of auto insurance
- Driving with a suspended license
- Bad credit history
- Owning a high-performance car
- Living in an area with high theft and vandalism losses
How to get high-risk auto insurance
If you are a high-risk driver, you can still obtain auto insurance, but it may be more expensive and challenging to find. Here are some options:
- Contact multiple insurance companies to get quotes and find one that suits your needs. Different insurers have different parameters for determining risk.
- Join a state-assigned risk pool, where auto insurers voluntarily participate, and each insurer must accept assigned motorists. While premiums are higher, you will get coverage regardless of your history.
- Get a policy from a private insurance company specializing in high-risk drivers. These companies offer non-standard policies for people with accident records, high-performance cars, or those living in high-risk areas.
Improving your insurance status
Over time, you can improve your insurance status and lower your premium by:
- Taking a defensive driving course to learn accident-avoiding skills
- Driving safely and obeying traffic laws
- Never drinking and driving
- Improving your credit score
- Buying a safer car
- Taking precautions against theft and carjacking
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State-assigned risk pools
Each state has its own eligibility rules for the assigned-risk pool, but generally, you must have tried to buy auto insurance in the past 60 days and been turned down. Some states may require that you be turned down by multiple insurance companies. You can apply to the assigned-risk pool by contacting your state's Department of Insurance or with the help of any auto insurance agent in your state.
Once you are in the assigned-risk pool, you will be assigned to an insurance company that operates in your state, and that company is required to provide you with coverage. However, it is important to note that insurance rates in the assigned-risk pool are significantly higher than in the voluntary market, and your coverage options may be limited to the state minimum liability requirements.
While being in the assigned-risk pool can help you meet your state's insurance requirements, it is not a permanent solution. You can improve your driving record while in the pool, and after a certain amount of time with no accidents or driving convictions, you may be able to transition back to the regular insurance market and find coverage at better rates.
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Non-standard insurance policies
If you have a history of traffic violations, accidents, or DUIs, you may be deemed a high-risk driver by insurance companies, and they may deny you coverage under their standard policies. However, you can still obtain auto insurance through non-standard insurance policies.
Non-standard auto insurance is designed for drivers who insurance companies consider to be high-risk and most likely to be involved in an accident. It is typically more expensive than standard insurance policies due to the increased likelihood of the insurance company having to pay out for claims. The monthly premiums are higher, and you may have to pay a substantial filing fee.
Some of the reasons why you may be required to obtain non-standard auto insurance include:
- Multiple traffic violations, accidents, or speeding tickets on your record.
- A suspended or revoked driver's license.
- Driving under the influence (DUI) without a license or insurance.
- Lack of driving experience or a history of insurance coverage.
- Poor credit rating.
- Owning a high-performance or luxury vehicle.
- Living in an area with high theft and vandalism rates.
You can obtain non-standard auto insurance from certain major insurance companies, their non-standard insurance subsidiaries, or specialist non-standard insurance companies. Some of the companies that offer non-standard auto insurance include:
- State Farm
- Dairyland
- GEICO
- Acceptance Insurance
- Direct Auto Insurance
- Gainsco Auto Insurance
- United Automobile Insurance Company
If you are unable to obtain a policy from any company, you can consider joining a state-assigned risk pool, where insurers are required to accept assigned motorists. However, this is typically more expensive than non-standard insurance obtained directly from a private company.
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Improving your risk profile
Improve your driving record
Having a history of collisions, traffic violations, or DUI/DWI convictions can make it difficult and expensive to get insurance. A clean driving record can help you enjoy discounts that are not granted to those with tickets or accidents. To improve your driving record, you can take a defensive driving course to learn skills that can help you avoid accidents. Drive safely and diligently obey traffic laws to avoid accidents and tickets for moving and other violations. Never drink and drive, and make sure to have a designated driver when you go out.
Improve your credit rating
Many insurers use credit information as a predictor of risk, as people who do not effectively manage their credit tend to make more claims. Improving your credit rating can help lower your insurance premium.
Choose a safer vehicle
The age, manufacturer, value, and safety features of your vehicle all matter to insurance companies. Cars that are more expensive to repair or more likely to be stolen carry higher rates than others. Some high-performance vehicles are very difficult and costly to insure. Cars with extra safety features, such as blind-spot detection, rear-view cameras, anti-theft devices, alarms, adaptive headlights, or anti-lock brakes, may be eligible for insurance discounts.
Deductible
Choosing a higher deductible can reduce your premium. A higher deductible means you pay more to repair your vehicle before your insurance coverage kicks in.
Location
If you live in a high-risk urban area or a high-crime neighborhood where vehicle theft or vandalism is more likely, you may pay higher insurance rates.
Marital status
Married people tend to be seen as better drivers than singles and often pay lower premiums. Additionally, the multi-car discount may apply, further reducing the premium.
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Comparing insurance quotes
Decide on the coverage you need:
Each state has its own minimum coverage requirements, so be sure to check what your state mandates. If your car is newer or leased, you may also need to carry additional coverage such as comprehensive and collision insurance. Other coverages to consider include uninsured motorist coverage, medical payments coverage, and personal injury protection.
Gather quotes from multiple insurers:
Obtain quotes from at least three different insurance companies, as recommended by the Insurance Information Institute (III). You can do this by visiting the websites of individual insurers or using a comparison site that provides quotes from multiple companies at once. When gathering quotes, ensure you are providing the same information to each company, including your driving record, vehicle information, and coverage needs.
Compare rates and coverage options:
When comparing quotes, make sure you are looking at similar coverage levels and deductibles. Pay attention to factors such as price, coverage options, customer reviews, and the insurer's reputation. Remember that a lower rate may not always mean better coverage, so be sure to review the policy details carefully.
Consider your specific circumstances:
If you have driving violations, you may be considered a high-risk driver and face higher insurance rates. Be transparent about your driving record when obtaining quotes to get an accurate comparison. You may also want to look into insurers that specialize in high-risk drivers, as they may be able to offer more comprehensive coverage.
Research insurers:
In addition to comparing rates and coverage, take the time to research the reputation and customer service of each insurance company. Check reviews and ratings from independent sources to gauge their claims handling, customer loyalty, and overall satisfaction. This can help you make an informed decision about which insurer is right for you.
Look for discounts:
Many insurance companies offer a variety of discounts that can lower your premium. Common discounts include safe driver discounts, bundling discounts (e.g., home and auto policies), student discounts, and discounts for paying your annual premium in full. Be sure to ask about available discounts when comparing quotes.
By following these steps and comparing insurance quotes, you can find the best coverage and price that suits your needs, even with driving violations. Remember to be thorough in your research and transparent about your driving history to ensure you get accurate and reliable auto insurance.
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Frequently asked questions
If you have a history of driving violations, you will likely be considered a high-risk driver and will need to purchase high-risk auto insurance at a more expensive rate. You can compare quotes from different insurance companies to find the cheapest premium for your needs. Some companies specialize in helping high-risk drivers find coverage, and you can also join a state-assigned risk pool, which provides auto coverage regardless of a driver's history.
Insurance companies will typically check your driving record when you apply for a new policy or renew your existing policy. They will look for accidents, traffic violations, and DUIs/DWIs, which are considered major violations. Other factors that may contribute to being considered high-risk include your employment status, where you keep your vehicle, and your insurance claim history.
You can take steps to improve your standing with insurance companies, such as taking a defensive driving course, improving your credit score, and driving safely to avoid further violations. Over time, if you prove that previous incidents were isolated, your insurance rates may drop.
