Getting car insurance can be a challenge for high-risk drivers, as they are typically seen by insurers as more likely to file claims or be involved in accidents. However, securing coverage is essential, both legally and for personal financial protection. Whether you’re classified as high-risk due to a poor driving record, accidents, or other factors, there are strategies you can use to obtain car insurance at a reasonable rate.
This guide outlines key steps for high-risk drivers seeking car insurance, options available, and tips to reduce premium costs.
Who Is Considered a High-Risk Driver?
A high-risk driver is someone who an insurance company deems more likely to file a claim or be involved in an accident. Common reasons for being labeled as high-risk include:
- Multiple traffic violations: Speeding, reckless driving, or running red lights.
- DUI/DWI convictions: Driving under the influence of alcohol or drugs.
- At-fault accidents: Being the primary cause of one or more accidents.
- Young or inexperienced drivers: Typically, drivers under 25 with limited experience.
- Poor credit score: In some states, poor credit can affect insurance rates.
- Lapses in insurance coverage: Gaps in coverage or not maintaining continuous insurance.
Steps to Get Car Insurance for High-Risk Drivers
1. Look for Specialized Insurance Providers
Some insurance companies specialize in covering high-risk drivers. These providers may be more willing to offer coverage to individuals with poor driving records or other risk factors. While premiums may be higher, these companies can provide necessary coverage when traditional insurers decline.
Examples of high-risk insurers include The General, Dairyland, and Acceptance Insurance.
- Tip: Search for high-risk insurers in your state or consult an insurance broker who specializes in high-risk clients.
2. Consider State-Sponsored Insurance Plans
In many states, drivers who cannot find coverage through standard insurers can turn to state-sponsored auto insurance programs, often referred to as Assigned Risk Plans or Residual Market Programs. These programs provide minimum coverage for drivers who are otherwise uninsurable.
- How it works: The state assigns you to an insurer, and you pay higher premiums in exchange for coverage. This can serve as a temporary solution while you work to improve your driving record.
3. Increase Deductibles
A higher deductible can reduce your insurance premium by transferring more financial responsibility to you in the event of a claim. This option may help make car insurance more affordable for high-risk drivers.
- Tip: Ensure you have enough savings to cover the higher deductible in case of an accident.
4. Enroll in a Defensive Driving Course
Many insurers offer discounts to high-risk drivers who complete a defensive driving course. These courses demonstrate your commitment to improving driving skills and can help reduce the perception of risk. Additionally, some states allow these courses to reduce points on your driving record, which may also help lower premiums over time.
- Tip: Check with your insurer to see if they offer discounts for completing a certified defensive driving course.
5. Consider Usage-Based Insurance (UBI)
Usage-based insurance programs, also known as pay-as-you-drive or telematics insurance, use tracking devices or mobile apps to monitor your driving habits, such as speed, braking, and mileage. If you exhibit safe driving behaviors, you may qualify for lower rates, even as a high-risk driver.
- Tip: Look into insurers like Progressive’s Snapshot or Allstate’s Drivewise, which offer usage-based options that reward safe driving.
6. Shop Around for Quotes
Insurance companies assess risk differently, meaning some may offer better rates than others for high-risk drivers. It’s crucial to shop around and obtain quotes from multiple insurers before making a decision.
- Tip: Use online comparison tools or consult an insurance agent to compare rates from high-risk insurers.
7. Request a Reassessment
If your driving record has improved, or if several years have passed since your last traffic violation or accident, contact your insurer to request a reassessment. Many insurance companies will lower premiums if your risk factors have diminished.
- Tip: Maintain a clean driving record for at least three years to see a reduction in your high-risk classification.
Types of Car Insurance for High-Risk Drivers
1. SR-22 Insurance
If you’ve been convicted of serious driving offenses such as a DUI or reckless driving, you may be required to file an SR-22 with the state. An SR-22 is a certificate proving that you carry the minimum required insurance.
- Tip: Not all insurers offer SR-22 insurance, so look for companies that provide this service, such as Geico, Progressive, or The General.
2. Non-Standard Auto Insurance
Non-standard auto insurance refers to policies that are specifically designed for high-risk drivers. These policies typically come with higher premiums and may offer limited coverage options. However, they fulfill legal requirements for driving.
- Tip: While non-standard insurance may be more expensive, maintaining coverage without lapses can improve your status as a lower-risk driver over time.
3. Assigned Risk Pool
In some states, drivers who cannot secure insurance on the open market are placed in an assigned risk pool. Insurance companies operating in the state are required to accept a certain number of high-risk drivers from this pool. While premiums will be higher than with standard policies, this option ensures you meet state insurance requirements.
- Tip: Assigned risk pools should be seen as a last resort since premiums can be significantly higher than regular insurance.
Tips for Lowering Premiums as a High-Risk Driver
Even though high-risk drivers face elevated premiums, there are steps you can take to mitigate the costs:
1. Bundle Your Policies
If you have other insurance policies, such as homeowners or renters insurance, bundling them with your auto insurance may result in a discount. Many insurance companies offer multi-policy discounts that can help reduce overall costs.
2. Maintain Continuous Coverage
Insurance companies view lapses in coverage as a red flag. By maintaining continuous car insurance without any gaps, you may eventually qualify for lower rates, even as a high-risk driver.
3. Drive a Less Expensive Vehicle
High-end or sports cars can raise premiums, especially for high-risk drivers. Consider driving a less expensive, safer vehicle with lower insurance costs until your risk classification improves.
4. Improve Your Credit Score
In some states, insurance companies use credit scores to help determine premiums. A poor credit score can raise rates for high-risk drivers. Taking steps to improve your credit score, such as paying off debts and making timely payments, could reduce your insurance costs over time.
5. Install Anti-Theft Devices
Some insurance companies offer discounts for vehicles equipped with anti-theft devices, such as alarms or tracking systems. This reduces the likelihood of a claim related to theft or vandalism, which can help lower your premiums.
Conclusion
Securing car insurance as a high-risk driver can be difficult, but it’s not impossible. By exploring specialized insurance providers, utilizing state-sponsored programs, and taking proactive steps to improve your driving record, you can find a policy that meets your needs. Over time, as you improve your driving habits and maintain coverage, you can work toward reducing your risk level and ultimately lowering your insurance premiums.