Are you a high-risk driver and looking for affordable car insurance? This blog is for you! Here we’ll explain what high-risk car insurance is, who considers it necessary, and what factors can make your insurance costlier.
Plus, we’ll explain how you can find the most affordable and effective high-risk insurance that suits your needs.
What is High-Risk Car Insurance?
High-risk car insurance is specifically designed for drivers who are considered high-risk by insurance companies. This comes in handy in cases where drivers have difficulty obtaining a normal insurance policy.
Insurance companies charge higher premiums for such drivers because they are more likely than normal drivers to be involved in an accident or file a claim.
High-risk insurance not only helps you meet legal requirements, but it also provides a protective cover for your vehicle and other assets. Although the premium may be quite high, you can reduce your costs to a great extent by choosing the right insurance company.
Who are High-Risk Drivers?
High-risk drivers are those whose driving habits or background are considered risky by insurance companies. The following categories fall within this scope:
- Young and New Drivers: Young drivers, especially those between 18-25 years of age, who have less driving experience. Insurance companies consider them risky because lack of experience increases the chances of accidents.
- Bad Driving Record: Insurance companies will consider you high-risk if you have a history of speeding tickets, accidents, or DUI (driving under the influence).
- Insurance Coverage Gap: If there is a gap of 30 days or more in your insurance, it may be a sign that you are a risky driver.
- Low Credit Score: Insurance companies use your credit score to evaluate risk. People with low credit scores are considered riskier.
- Driving License Problems: Those who have a suspended license or have recently obtained a license.
Most Common High-Risk Factors
- Problems in Driving Dehaviour: Drivers who repeatedly break the rules, such as running red lights, overtaking improperly, or repeatedly speeding.
- DUI or DWI Record: Having a history of cases of driving under the influence of alcohol or drugs. This is not only legally serious, but also increases insurance premiums.
- Not Having Full-Coverage: Insurance companies consider it risky if your insurance coverage is limited or is not renewed frequently.
- Vehicle Type: High-performance vehicles, such as sports cars or older models, which are expensive to maintain.
- History of Insurance Claims: If you have filed claims repeatedly in the past, it is a signal to insurance companies that you may be at risk.
How to Find High-Risk Auto Insurance
Finding the right insurance policy for high-risk drivers can be difficult, but it is not impossible. With some strategies and the right information, you can find affordable and effective insurance plans. Here we’ll tell you how to get high-risk insurance and which companies offer the cheapest options.
- Use Online Comparison Tools: There are many online platforms where you can compare rates and policy features from different insurance companies. This helps you choose the right option as per your needs and budget.
- Contact Experts: Consult insurance agents who offer special policies for high-risk drivers.
- Avail Discounts:
- Safe Driving Courses: Taking a course to improve driving skills may get a discount.
- Multi-Policy Discount: Savings are possible if you buy home and auto insurance together.
- Safety Features in Vehicles: Modern safety features of a car can reduce insurance costs.
- Find Regional and State-Level Options: Apart from big brands, local insurance companies and state-sponsored plans offer affordable solutions for high-risk drivers.
- Choose a Full-Coverage Plan: Not only does it provide comprehensive protection to your vehicle, it is also a sign of responsibility to the insurance companies towards you.
Which Companies Offer the Cheapest High-Risk Auto Insurance?
The companies that offer the most affordable insurance for high-risk drivers are detailed below.
| Insurance Company | Key Features | Average Premium (Per Year) |
|---|---|---|
| GEICO | Affordable plans, excellent customer service, and discounts | $2,478 |
| State Farm | Forgiveness policies for accidents and tickets | $3,510 |
| Allstate | Accident forgiveness and affordable bundling options | $5,158 |
| The General | Specially designed plans for high-risk drivers | $4,356 |
| Average | Basic and affordable coverage for vehicles | $3,876 |
Affordable Full-Coverage Rates for High-Risk Drivers
Full-coverage auto insurance can be expensive for high-risk drivers, but with the right information and comparing insurance companies, you can find an affordable option.
Full-coverage policies include liability, collision, and comprehensive coverage, which not only protects your vehicle but also ensures your financial security in case of an accident.
Here’s a breakdown of full-coverage rates based on different circumstances.
Full-Coverage Rates After a 30-Day Coverage Lapse
A gap in insurance coverage of 30 days or more can increase your insurance premium rates. Insurance companies consider this a sign that you are not being careful with your insurance renewals, making you considered a risky driver. However, some companies offer affordable options in such cases.
Important Tips:
- Timely Renewal: Make sure to renew your policy before it expires.
- Benefits of local plans: Some state-sponsored insurance plans are designed for drivers who may have expired coverage.
Average full-coverage rates:
| Company | Monthly Rate |
|---|---|
| Geico | $117 |
| State Farm | $172 |
| The General | $263 |
| Allstate | $286 |
Full-Coverage Rates After Two Recent Speeding Tickets
Speeding tickets are the biggest contributor to increasing insurance premiums. This signals to insurance companies that you have failed to follow traffic rules. However, you can lower your rates by taking safe driving courses and choosing tracking based insurance plans.
Saving Tips:
- Usage-based insurance (UBI): Choose plans that set rates based on your driving habits.
- Driving improvements: If you follow the rules for a long time, insurance companies may offer you a discount.
Average full-coverage rates:
| Company | Monthly Rate |
|---|---|
| Geico | $188 |
| State Farm | $238 |
| The General | $263 |
| Allstate | $286 |
Full-Coverage Rates After a DUI with SR-22
DUI and SR-22 can increase your insurance premiums to the maximum level. Insurance companies consider this a factor that increases driving risk. The SR-22 ensures insurance companies that you are financially responsible for driving legally.
Ways to Avoid:
Choose discount plans: Accident-waiver policies and UBI plans can reduce costs.
End the SR-22 period: As soon as this period ends, ask the insurance company to review your rates.
Average full-coverage rates:
| Company | Monthly Rate |
|---|---|
| Geico | $217 |
| State Farm | $252 |
| The General | $292 |
| Allstate | $453 |
Full-Coverage Rates After an 18-Year-Old Driver’s Recent Ticket
Insurance premium rates are already higher for young drivers. Adding a recent ticket to this increases the premium further. Insurance companies consider young drivers to be at higher risk due to their lack of experience and risky driving.
How to Avoid:
- Good Student Discount: Insurance companies offer discounts if you get good grades in school.
- Add to parent policy: Adding young drivers to their parents’ policy can reduce costs.
Average full-coverage rates:
| Company | Monthly Rate |
|---|---|
| Geico | $304 |
| State Farm | $508 |
| The General | $634 |
| Allstate | $695 |
Options for Drivers Denied Traditional Coverage
When insurance companies refuse to offer traditional coverage, drivers often feel they have no options. But there are several special plans and state-sponsored programs available for high-risk drivers. This section will tell you what to do to get coverage and what options are available to you.
How to Get Insurance If Your Coverage Is Denied
- Look For High-Risk Insurance Companies: Many insurance companies offer plans specifically for high-risk drivers. These companies specialize in covering drivers who are having trouble getting coverage due to a DUI, bad driving record, or insurance gaps.
- Contact a Broker or Agent: Insurance agents or brokers can often suggest special plans for high-risk drivers. They help you find the most affordable option based on your records.
- Consider Usage-Based Insurance (UBI): If you don’t have a good driving record, a UBI policy may be right for you. These plans set rates based on your actual driving habits (such as mileage and driving safety).
- Improve Driving Record:
- Safe Driving Course: This signals to insurance companies that you are committed to improving your driving behavior.
- Avoid Filing Small Claims: Constantly filing claims can reduce your credibility.
- Compare Insurance Companies: Compare rates from different insurance providers using online comparison tools.
State-Sponsored Auto Insurance Plans
If you can’t get coverage from a private insurance company, state-sponsored plans can help you. These plans provide insurance coverage to drivers who do not qualify for traditional insurance.
| State | Insurance Plan |
|---|---|
| Alabama | Alabama Automobile Insurance Plan (AL AIP) |
| Alaska | Alaska Automobile Insurance Plan (AK AIP) |
| Arizona | Arizona Automobile Insurance Plan (AZ AIP) |
| Arkansas | Arkansas Automobile Insurance Plan (AR AIP) |
| California | California Automobile Assigned Risk Plan (CAARP) |
| Colorado | Colorado Motor Vehicle Insurance Plan (CO AIP) |
| Connecticut | Connecticut Automobile Insurance Assigned Risk Plan (CT ARP) |
| Delaware | Delaware Automobile Insurance Plan (DAIP) |
| District of Columbia | District of Columbia Automobile Insurance Plan (DC AIP) |
| Florida | Florida Automobile Joint Underwriting Association (FAJUA) |
| Georgia | Georgia Automobile Insurance Plan (GAAIP) |
| Hawaii | Hawaii Joint Underwriting Plan (HJUP) |
| Idaho | Idaho Automobile Insurance Plan (IDAIP) |
| Illinois | Illinois Automobile Insurance Plan (ILAIP) |
| Indiana | Indiana Automobile Insurance Plan (IN AIP) |
| Iowa | Iowa Automobile Insurance Plan (IA AIP) |
| Kansas | Kansas Automobile Insurance Plan (KS AIP) |
| Kentucky | Kentucky Automobile Insurance Plan (KY AIP) |
| Louisiana | Louisiana Automobile Insurance Plan (LA AIP) |
| Maine | Maine Automobile Insurance Plan (ME AIP) |
| Maryland | Maryland Auto Insurance Fund (MAIF) |
| Massachusetts | Massachusetts Automobile Insurance Plan (MAIP) |
| Michigan | Michigan Automobile Insurance Plan Facility (MAIPF) |
| Minnesota | Minnesota Automobile Insurance Plan (MNAIP) |
| Mississippi | Mississippi Automobile Insurance Plan (MSAIP) |
| Missouri | Missouri Automobile Insurance Plan (MO AIP) |
| Montana | Montana Automobile Insurance Plan (MT AIP) |
| Nebraska | Nebraska Automobile Insurance Plan (NE AIP) |
| Nevada | Nevada Automobile Insurance Plan (NV AIP) |
| New Hampshire | New Hampshire Automobile Insurance Plan (NH AIP) |
| New Jersey | New Jersey Personal Automobile Insurance Plan (NJ PAIP) |
| New Mexico | New Mexico Motor Vehicle Insurance Plan (NM AIP) |
| New York | New York Automobile Insurance Plan (NYAIP) |
| North Carolina | North Carolina Reinsurance Facility (NCRF) |
| North Dakota | North Dakota Automobile Insurance Plan (ND AIP) |
| Ohio | Ohio Automobile Insurance Plan (OAIP) |
| Oklahoma | Oklahoma Automobile Insurance Plan (OKAIP) |
| Oregon | Automobile Insurance Plan of Oregon (OR AIP) |
| Pennsylvania | Pennsylvania Assigned Risk Plan (PA ARP) |
| Rhode Island | Rhode Island Automobile Insurance Plan (RI AIP) |
| South Carolina | Associated Auto Insurers Plan of South Carolina (AAIPSC) |
| South Dakota | South Dakota Automobile Insurance Plan (SD AIP) |
| Tennessee | Tennessee Automobile Insurance Plan (TNAIP) |
| Texas | Texas Automobile Insurance Plan Association (TAIPA) |
| Utah | Utah Automobile Insurance Plan (UT AIP) |
| Vermont | Vermont Automobile Insurance Plan (VT AIP) |
| Virginia | Virginia Automobile Insurance Plan (VAIP) |
| Washington | Washington Automobile Insurance Plan (WAIP) |
| West Virginia | West Virginia Automobile Insurance Plan (WV AIP) |
| Wisconsin | Wisconsin Automobile Insurance Plan (WAIP) |
| Wyoming | Wyoming Automobile Insurance Plan (WY AIP) |
Conclusion
Finding the right and affordable car insurance for high-risk drivers can be challenging, but it’s not impossible.
In this post, we explain what high-risk car insurance is, what factors put you in the high-risk category, and how to find cheap full-coverage rates for such drivers. Additionally, we also shared options for drivers who are denied traditional coverage, such as state-sponsored plans.