If you need information about “high-risk auto insurance”—whether you’re a new driver, have a bad credit score, or have had a recent accident on your record—then this guide is for you.
In this post, we’ll explain who high-risk drivers are and why they face higher rates for insurance. Plus, you’ll learn how to find affordable insurance options, which companies offer the best coverage, and how to choose the right insurance plan for you.
Read on to make the right decision as per your needs.
Understanding High-Risk Drivers and Insurance Basics
High-risk drivers are those whom insurance companies classify at higher rates based on potential risks. They get this status due to a bad driving record, DUI, low credit score, or being a new driver.
Insurance companies consider such drivers more risky, making premiums more expensive. In this section we will understand the reasons for this situation and ways to resolve it in detail.
Who is a High-Risk Driver?
A high-risk driver is one who insurance companies associate with a higher likelihood of claims based on driving risks. This condition usually occurs due to the following reasons:
- Poor Driving Record: History of accidents, speeding tickets, or traffic violations.
- DUI (Driving Under the Influence): Driving under the influence of alcohol or drugs.
- Low Credit Score: Insurance companies consider credit scores as an indication of your financial risk.
- New or Young Drivers: Due to inexperience.
- Gaps in Insurance Coverage: If you have not taken insurance for a long time.
These factors cause insurance companies to classify you as “high-risk,” which increases your insurance rates.
Why do High-Risk Drivers Face Higher Insurance Rates?
Insurance for high-risk drivers is expensive because insurance companies consider them potentially more risky.
Major Reasons:
- Higher Likelihood of Claims: Drivers with poor driving records are more likely to be involved in accidents.
- Repairs and Medical Expenses: Insurance companies have to pay more due to higher risk claims.
- Insurance Rate Setting Models: Things like credit score, driving record, and vehicle type determine your rates.
- Low Reliability: A history of DUIs or traffic violations signals to insurance companies that you are not safe on the road.
Finding Affordable High-Risk Auto Insurance
Finding insurance for high-risk drivers can be challenging, but it is possible with the right strategy and information. You can find affordable options using online comparison tools, specialty insurance companies, local agents, and state insurance programs.
Additionally, improving driving record, taking advantage of discounts, and choosing a bundled policy helps reduce premiums.
Where to Find Affordable High-Risk Auto Insurance?
Finding insurance for high-risk drivers can be challenging, but adopting the right strategy can help you lower your insurance rates. Here are some places and ways you can find affordable high-risk insurance:
- Specialty Insurance Companies: Some companies specifically target high-risk drivers, such as The General or Acceptance Insurance.
- Online Comparison Tools: Websites like Insurify and The Zebra help compare different insurance plans.
- Local Insurance Agents: Insurance agents in your area can often find the most affordable plan for you.
- State Insurance Programs: Many states offer special insurance programs for high-risk drivers.
Tips to Reduce High-Risk Insurance Premiums
Here are some practical tips for reducing your premiums:
- Improve Driving Record: Driving slowly and safely has a positive effect on your record.
- Increase the Deductible: Choosing a higher deductible can lower your monthly premium rates.
- Bundle Policy: If you have home insurance, combine it with car insurance.
- Improve Credit Score: Insurance companies offer lower rates to customers with better credit scores.
- Take Advantage of Discounts: Many companies offer discounts on safety equipment, driving courses, or pay-per-mile policies.
Example:
| Step | Potential Savings (Percentage) |
|---|---|
| Increase Deductible | 10–20% |
| Complete a Driving Course | 5–15% |
| Improve Credit Score | 15–25% |
The Best High-Risk Auto Insurance Companies
When it comes to choosing the right insurance company for high-risk drivers, it is important to evaluate the companies’ ratings and services. The table below lists high-risk insurance companies based on their NerdWallet ratings:
| High-Risk Car Insurance Company | NerdWallet Rating |
|---|---|
| Geico | 4.5 |
| Progressive | 5.0 |
| Direct Auto Insurance | 3.5 |
| Infinity Insurance | 2.5 |
| 21st Century | 3.0 |
| Acceptance | 2.0 |
| Bristol West | 3.0 |
| The General Insurance | 2.5 |
| Kemper | 3.0 |
| National General Insurance | 3.0 |
| Safe Auto | 2.5 |
| Dairyland | 2.5 |
| Gainsco | 2.0 |
Top Rated Companies:
- Progressive: Famous for the highest rating (5.0), affordable rates, and discount programs.
- Geico: Affordable and comprehensive service with a high rating (4.5).
- Direct Auto Insurance: Budget-friendly option and great customer service.
Key Factors to Consider When Choosing a High-Risk Insurance Provider
- Ratings and Reviews: Select companies that have good customer reviews and ratings. This shows the credibility of the company.
- Premium Cost: Compare the premiums of different companies and see which option fits your requirement and budget.
- Coverage Options: Make sure the insurance company provides adequate coverage for your risk.
- Customer Support: Prefer companies that offer 24/7 support and easy claims processing.
- Discounts and Special Programs: See if the company offers discounts on driving courses, safe driving, or bundling.
How much does high-risk car insurance cost?
The cost of high-risk auto insurance depends on several factors such as the driver’s profile, driving record, and credit score. On average, nationally it costs $665 to $565 per year, which applies to drivers with clean driving records and good credit scores.
However, if the driver has a record of bad credit, a DUI, or an at-fault accident, this cost can be significantly higher. This increase in premium is done by the insurance companies keeping in mind the potential risk. For example, drivers with bad credit or a DUI may have to pay more than $1,152 to $1,343.
Therefore, it is necessary to improve driving record and manage credit score timely to control premium cost.
Average Cost of High-Risk Car Insurance
The cost of high-risk insurance depends on the driver’s age, driving record, and credit score. The table below compares average premiums in different situations for 25 and 40 year old drivers:
| Driver Status | 25-Year-Old Driver | 40-Year-Old Driver |
|---|---|---|
| Clean Driving Record (Good Credit) | $665 | $565 |
| At-Fault Wreck | $1,023 | $884 |
| Poor Credit | $1,164 | $984 |
| DUI | $1,343 | $1,152 |
Car Insurance Costs for Drivers With an At-Fault Accident
If a driver has an accident due to an error on their record, insurance premiums increase significantly, as insurance companies consider such drivers a higher risk. Its cost depends on several factors such as age and location.
Impact of premium based on age:
- 25-year-old driver: Average $1,023 per year for minimum coverage.
- 40-year-old driver: Average $884 per year for minimum coverage.
- Young drivers have to pay higher premiums due to lack of experience and higher risks.
| Driver Age | Full Coverage | Minimum Coverage |
|---|---|---|
| 25 | $2,848 | $1,023 |
| 40 | $2,439 | $884 |
State wise difference:
Below is the average annual premium for minimum coverage after an at-fault accident for a 25-year-old driver in each state.
| State | Annual Premium (Minimum Coverage) |
|---|---|
| Alabama | $881 |
| Alaska | $707 |
| Arizona | $1,013 |
| Arkansas | $899 |
| California | $1,386 |
| Colorado | $940 |
| Connecticut | $1,567 |
| Delaware | $1,306 |
| Florida | $1,078 |
| Georgia | $1,444 |
| Hawaii | $449 |
| Idaho | $570 |
| Illinois | $869 |
| Indiana | $703 |
| Iowa | $445 |
| Kansas | $806 |
| Kentucky | $1,440 |
| Louisiana | $1,674 |
| Maine | $677 |
| Maryland | $1,414 |
| Massachusetts | $818 |
| Michigan | $1,719 |
| Minnesota | $1,031 |
| Mississippi | $938 |
| Missouri | $796 |
| Montana | $598 |
| Nebraska | $718 |
| Nevada | $1,445 |
| New Hampshire | $730 |
| New Jersey | $1,434 |
| New Mexico | $687 |
| New York | $1,749 |
| North Carolina | $775 |
| North Dakota | $602 |
| Ohio | $649 |
| Oklahoma | $804 |
| Oregon | $1,169 |
| Pennsylvania | $767 |
| Rhode Island | $1,485 |
| South Carolina | $1,074 |
| South Dakota | $459 |
| Tennessee | $777 |
| Texas | $1,120 |
| Utah | $1,004 |
| Vermont | $564 |
| Virginia | $899 |
| Washington | $870 |
| Washington, D.C. | $1,118 |
| West Virginia | $866 |
| Wisconsin | $598 |
| Wyoming | $501 |
Car insurance costs for drivers with a DUI
Having a DUI (Drinking Under Influence) record increases insurance costs significantly, as insurance companies consider such drivers high risk. Premium rates depend on factors such as the driver’s age and location.
Cost of premium based on age:
With a DUI, the average annual premium for a 25-year-old driver and a 40-year-old driver is as follows:
| Driver Age | Full Coverage | Minimum Coverage |
|---|---|---|
| 25 | $3,656 | $1,343 |
| 40 | $3,114 | $1,152 |
Young drivers have to pay higher premiums due to their inexperience and risk.
State wise average premium:
Here are the average yearly costs for minimum coverage in each state for a 25-year-old driver with a prior DUI offense.
| State | Annual Premium (Minimum Coverage) |
|---|---|
| Alabama | $1,054 |
| Alaska | $762 |
| Arizona | $1,407 |
| Arkansas | $1,088 |
| California | $1,942 |
| Colorado | $1,203 |
| Connecticut | $2,123 |
| Delaware | $1,786 |
| Florida | $1,317 |
| Georgia | $1,690 |
| Hawaii | $1,182 |
| Idaho | $692 |
| Illinois | $1,084 |
| Indiana | $911 |
| Iowa | $554 |
| Kansas | $1,048 |
| Kentucky | $1,915 |
| Louisiana | $2,546 |
| Maine | $680 |
| Maryland | $1,665 |
| Massachusetts | $901 |
| Michigan | $3,718 |
| Minnesota | $1,429 |
| Mississippi | $1,002 |
| Missouri | $936 |
| Montana | $706 |
| Nebraska | $763 |
| Nevada | $1,721 |
| New Hampshire | $968 |
| New Jersey | $1,760 |
| New Mexico | $879 |
| New York | $2,038 |
| North Carolina | $935 |
| North Dakota | $625 |
| Ohio | $913 |
| Oklahoma | $827 |
| Oregon | $1,352 |
| Pennsylvania | $987 |
| Rhode Island | $2,103 |
| South Carolina | $1,292 |
| South Dakota | $575 |
| Tennessee | $1,088 |
| Texas | $1,363 |
| Utah | $1,224 |
| Vermont | $687 |
| Virginia | $1,198 |
| Washington | $1,130 |
| Washington, D.C. | $1,273 |
| West Virginia | $1,098 |
| Wisconsin | $796 |
| Wyoming | $659 |
The Cost of Car Insurance With Bad Credit
Drivers with poor credit scores are viewed by insurance companies as higher risk, causing their insurance costs to be much higher than normal. Factors such as age and location also affect this cost.
Insurance cost based on age:
| Driver Age | Full Coverage | Minimum Coverage |
|---|---|---|
| 25 | $3,373 | $1,164 |
| 40 | $2,812 | $984 |
25-year-old drivers have to pay higher premiums than 40-year-old drivers because of their lack of experience and risk.
State wise average premium:
Listed below are the average yearly premiums for minimum coverage in each state for a 25-year-old driver with bad credit.
| State | Annual Premium (Minimum Coverage) |
|---|---|
| Alabama | $1,024 |
| Alaska | $707 |
| Arizona | $1,182 |
| Arkansas | $1,090 |
| California* | $757 |
| Colorado | $1,033 |
| Connecticut | $1,905 |
| Delaware | $1,600 |
| Florida | $1,982 |
| Georgia | $1,406 |
| Hawaii* | $326 |
| Idaho | $612 |
| Illinois | $1,029 |
| Indiana | $907 |
| Iowa | $593 |
| Kansas | $928 |
| Kentucky | $1,641 |
| Louisiana | $1,813 |
| Maine | $776 |
| Maryland | $1,645 |
| Massachusetts* | $479 |
| Michigan* | $1,210 |
| Minnesota | $1,274 |
| Mississippi | $964 |
| Missouri | $977 |
| Montana | $670 |
| Nebraska | $902 |
| Nevada | $1,440 |
| New Hampshire | $1,086 |
| New Jersey | $1,559 |
| New Mexico | $792 |
| New York | $2,724 |
| North Carolina | $544 |
| North Dakota | $698 |
| Ohio | $826 |
| Oklahoma | $832 |
| Oregon | $1,279 |
| Pennsylvania | $846 |
| Rhode Island | $1,663 |
| South Carolina | $1,409 |
| South Dakota | $627 |
| Tennessee | $941 |
| Texas | $1,121 |
| Utah | $1,154 |
| Vermont | $670 |
| Virginia | $1,063 |
| Washington | $873 |
| Washington, D.C. | $1,335 |
| West Virginia | $991 |
| Wisconsin | $2,058 |
| Wyoming | $562 |
Note: Using credit history to calculate car insurance rates is illegal in the states marked with *.
Conclusion
This guide on high-risk auto insurance provides the information you need—whether it’s understanding who is considered a high-risk driver, how to find affordable options, or how to choose the right insurance provider.
With the right strategies and information, you can manage your insurance costs and ensure your financial security.