High-Risk Drivers: Which Auto Insurance Companies Offer Coverage?

High-risk car insurance is for drivers who are considered riskier to an insurer than the average driver. This includes drivers with multiple tickets, accidents, or a combination of both, as well as those with serious violations like a DUI or reckless driving charge on their record. High-risk drivers are likely to pay more than $565 per year, the average national cost for minimum coverage car insurance. The cheapest car insurance company for high-risk drivers is Nationwide, though USAA offers cheaper rates to those who are eligible. State Farm is the best insurance company for high-risk drivers.

Best insurance companies for high-risk drivers

High-risk drivers are often faced with higher insurance rates and fewer choices of insurance companies. This is because they are more likely to file claims, and data suggests that younger drivers, those with bad credit, or those living in certain areas are more likely to file a claim or have one filed against them.

State Farm

State Farm is one of the largest auto insurers in the US and has an excellent reputation for customer satisfaction. It offers over a dozen discounts, including for safe driving, bundling, and good students. It also has an A++ rating from AM Best, indicating superior financial health, and its coverage is offered in all 50 states. However, State Farm has a high volume of complaints and does not offer gap insurance.

Erie

Erie Insurance offers some of the lowest premiums for high-risk drivers, including people with at-fault accidents. It has high customer satisfaction scores from J.D. Power and a below-average NAIC complaint index. However, it is only available in 12 states and Washington, D.C., and has limited online and app capabilities.

Geico

Geico is available in all 50 states and offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance and rental car reimbursement. It also offers other insurance products, such as homeowners and renters insurance, that can be bundled for additional savings. However, Geico does not offer gap insurance or rideshare insurance, and it has fewer branches for in-person services.

Progressive

Progressive is available in all 50 states and offers low rates for drivers with DUIs. It also offers non-owner car insurance and SR-22 certificates, as well as accident forgiveness and a vanishing deductible. However, it has below-average customer satisfaction ratings from J.D. Power and an above-average number of complaints.

Amica

Amica offers a variety of auto insurance policies and a total of 18 discounts, including for bundling and students. It is highly rated by J.D. Power for auto claims satisfaction and allows customers to customize their policies. However, Amica's prices are higher than the industry average, and it is focusing on short-term plans, reducing from 12-month to 6-month policies.

USAA

USAA is available to military members, veterans, and their families in all 50 states and offers low rates and discounts for those who are deployed or store their vehicles on base. It also has stellar customer satisfaction scores and a track record of financial strength. However, USAA is limited to military families and veterans and does not have brick-and-mortar offices.

Cheapest car insurance for high-risk drivers

High-risk drivers are often charged some of the highest rates for car insurance in the US. However, there are still plenty of reputable companies that will insure people with a bad driving record.

According to MoneyGeek, State Farm is the cheapest option for high-risk drivers, costing $1,459 annually. However, Geico is also a good option for high-risk drivers, with rates that are 36% less expensive than other companies, on average. For military members and veterans, USAA is a good option.

Who is considered a high-risk driver?

High-risk drivers include those with a history of tickets, at-fault accidents, or DUIs, as well as new drivers and those with bad credit. Other factors that can put you in the high-risk category include:

• Lapses in insurance coverage
• Living in a high-crime area
• Having a high number of points on your license
• Filing multiple insurance claims in the last three years
• Driving a high-value vehicle

The length of time you are considered a high-risk driver depends on the state you live in and your insurance company. Generally, factors like at-fault accidents and speeding tickets will affect your insurance rates for three to five years, while a DUI conviction could stay on your record for up to ten years.

Car insurance for high-risk drivers by state

If you're a high-risk driver, you'll likely pay more for car insurance than those with clean records, good credit, and ample driving experience. While there is no industry standard, insurers may classify you as a high-risk driver if you have a history of accidents, traffic violations, or a lapse in insurance coverage. Other factors that may contribute to being classified as a high-risk driver include age, credit score, and the type of vehicle you drive.

State Farm

State Farm is one of the largest auto insurers in the US and is known for its high customer satisfaction ratings. They offer a range of discounts, including for safe driving, bundling, and good students. State Farm is available in all 50 states.

Erie Insurance

Erie Insurance offers affordable premiums and customizable policies. They are available in 12 states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington D.C., West Virginia, and Wisconsin.

Geico

Geico is available nationwide and offers 16 discounts, as well as optional add-ons like emergency roadside assistance and rental car reimbursement. They also provide a range of insurance products, making it easy to bundle and save on coverage.

Progressive

Progressive offers low rates for drivers with DUIs and provides non-owner car insurance and SR-22 certificates. They are available in all 50 states.

Amica

Amica offers a variety of auto insurance policies and has a total of 18 discounts, including bundling discounts of up to 30%. Amica is available nationwide.

USAA

USAA caters to military members, veterans, and their families in all 50 states and Washington D.C. They offer competitive rates and discounts for those who are deployed or store their vehicles on base.

While being a high-risk driver may result in higher insurance premiums, there are ways to lower your costs. These include enrolling in a safe driving course, improving your credit score, bundling your policies, and comparing quotes from different insurance providers. Additionally, you can consider adjusting your coverage and increasing your deductible to reduce your premium.

How to save money on high-risk auto insurance

High-risk drivers pay some of the highest rates for car insurance. However, there are ways to save money on high-risk auto insurance. Here are some tips to help you get affordable rates:

• Shop around for coverage: Getting car insurance quotes from several providers is crucial in getting cheap coverage. Compare rates from big companies, regional companies, and non-standard auto insurance companies that cater to high-risk drivers.
• Take a defensive driving course: Some insurers offer discounts if you take a defensive driving course to improve your driving skills.
• Raise your deductible: Increasing your auto insurance deductible will lower your premium. However, keep in mind that you will have to pay more out of pocket if you need to make a claim.
• Look for discounts: Even if you're a high-risk driver, you may still be eligible for car insurance discounts. Common discounts include multi-policy, multi-vehicle, safe driver, good student, and military discounts.
• Improve your credit score: In most states, your credit score can impact your car insurance rates. Boosting your credit score can help lower your premium.
• Consider pay-per-mile insurance: If you don't drive often, usage-based insurance programs that charge you based on your mileage can help you save money.
• Use a telematics program: Telematics programs monitor your driving habits and can reward you with lower rates if you avoid risky behaviours such as accelerating too quickly or looking at your phone while driving.
• Choose the right insurance company: Some insurance companies specialize in providing competitive rates for high-risk drivers. Look for companies with low overall rates and a good selection of coverage options.
• Bundle your policies: Getting your auto insurance from the same company that provides your home or renters insurance can often get you a discount.
• Maintain a clean driving record: Keeping your driving record clean, without any further accidents or violations, will help build confidence with insurance companies and may lead to lower rates over time.

How to get cheap car insurance with a bad driving record

If you are a high-risk driver, you may be able to get cheap car insurance by improving your credit score, taking a defensive driving course, raising your deductible, and comparing quotes from multiple insurance companies.

• USAA
• State Farm
• Erie
• Geico
• Progressive
• Amica
• Nationwide

Frequently asked questions