Insurance for High Risk Drivers

Securing car insurance is essential for all drivers, but high-risk drivers often face unique challenges in finding the right coverage. Being labeled a high-risk driver can result from several factors, such as traffic violations, accidents, and even age or credit history.

This classification can lead to higher premiums and fewer coverage options. However, there are ways to navigate the high-risk insurance landscape and find affordable and comprehensive policies. In this article, we’ll be discussing insurance for high risk drivers.

Who Are High-Risk Drivers?

High-risk drivers are individuals whom insurance companies deem to have a higher probability of being involved in an accident or filing a claim than other drivers. This increased risk can lead to higher insurance premiums and fewer options for coverage.

What Driving Factors Make You a High Risk Driver?

The criteria for being classified as high risk may vary by insurer, but generally includes the following factors:

Traffic Violations: Repeated or severe traffic violations, such as speeding tickets, running red lights, reckless driving, and other infractions, can categorize a driver as high risk.
Accidents: Drivers with a history of at-fault accidents, especially within a short time frame, are often labeled as high-risk.
DUI/DWI Offenses: Driving under the influence of alcohol or drugs is a serious offense that places a driver in the high-risk category.
New and Inexperienced Drivers: Young drivers, typically under the age of 25, and individuals with less driving experience are often considered high-risk due to their lack of familiarity with the road and traffic rules.
Poor Credit History: Insurers may consider a driver’s credit score as an indicator of their financial responsibility, which can influence their risk classification.
High Mileage: Drivers who consistently drive high mileage may be at increased risk due to the frequency of exposure on the road.

Best Car Insurance Company for High Risk Drivers

Below are some of the best car insurance companies for high-risk drivers:

State Farm

State Farm is one of the largest auto insurance providers in the United States and offers high-risk insurance options for drivers with a history of accidents, traffic violations, or other risk factors. It provides the following benefits to high-risk drivers:

SR-22 Certificates: State Farm can assist high-risk drivers in filing SR-22 certificates, which prove financial responsibility as required by some states for drivers with serious violations.
Drive Safe & Save: State Farm offers a usage-based insurance program called Drive Safe & Save. This program uses telematics to monitor driving habits and offers potential discounts for safe driving behaviors.
Flexible Payment Options: State Farm offers various payment plans and options, allowing high-risk drivers to find a plan that suits their budget and needs.

State Farm’s customer service is known for its quality, and the company provides resources to help high-risk drivers improve their risk profile.

Erie Auto Insurance

Erie Insurance is known for its personalized service and competitive rates. It provides high-risk auto insurance options with unique features to benefit high-risk drivers:

First Accident Forgiveness: Erie may offer first accident forgiveness, which prevents premium increases for the first at-fault accident on your record, provided certain conditions are met.
Rate Lock: Erie offers a unique feature called Rate Lock, which keeps your premium steady over time, even if you experience an accident. This can provide stability for high-risk drivers.
Discounts: Erie provides various discounts, such as those for anti-theft devices, multi-policy bundling, and safe driving courses. These discounts can help lower premiums for high-risk drivers.

Erie’s approach focuses on offering personalized service and competitive rates while providing unique features to benefit high-risk drivers.

Geico Auto Insurance

Geico is a well-known provider of auto insurance, and it offers coverage options for high-risk drivers:

SR-22 Filing: Geico can assist high-risk drivers who need an SR-22 certificate to meet state requirements for financial responsibility.
DriveEasy Program: Geico’s DriveEasy program is a usage-based insurance option that uses telematics to monitor driving habits and potentially offer discounts for safe driving.
Competitive Rates: Geico is known for its competitive pricing, even for high-risk drivers. They provide various coverage options and premium plans for high-risk drivers.

It is a well-known insurance provider that aims to offer competitive rates and discounts even for high-risk drivers.

Progressive Auto Insurance

Progressive is one of the leading auto insurance providers in the U.S., and it offers various options for high-risk drivers:

Snapshot Program: Progressive’s usage-based insurance program, Snapshot®, uses telematics to monitor driving habits and offers potential discounts for safe drivers.
Policy Customization: Progressive allows high-risk drivers to customize their insurance policies, offering different types of coverage and add-ons to suit their needs.
Name Your Price Tool: Progressive offers an online tool called Name Your Price®, allowing high-risk drivers to explore coverage options that fit their budget.

It provides various options for high-risk drivers to customize their policies and offers innovative programs to encourage safe driving.

USAA Auto Insurance

USAA serves military members and their families, offering high-risk insurance coverage for eligible customers. Some features of USAA’s high-risk auto insurance include:

Safe Driving Discounts: USAA rewards safe driving habits with potential discounts on insurance premiums.
SR-22 Filing: USAA can assist high-risk drivers who require an SR-22 certificate to meet state requirements.
Exceptional Customer Service: USAA is known for its high-quality customer service and provides support for high-risk drivers throughout the claims process.

USAA is highly regarded for its excellent service and unique benefits for military members and their families.

American Famly Insurance

American Family Insurance provides high-risk insurance options for drivers with less-than-perfect records. Some aspects of their coverage include:

KnowYourDrive Program: American Family’s usage-based insurance program, KnowYourDrive, monitors driving habits and offers potential discounts for safe driving.
SR-22 Certificates: American Family can assist high-risk drivers in filing SR-22 forms when required by the state.
Flexible Coverage Options: High-risk drivers can choose from a range of coverage options to suit their needs and budget.

American Family focuses on providing flexible insurance coverage options and usage-based programs to benefit high-risk drivers.

Nationwide Insurance

Nationwide offers high-risk auto insurance options with various features:

SmartRide: Nationwide’s usage-based insurance program, SmartRide, uses telematics to track driving habits and offers potential discounts for safe drivers.
Vanishing Deductible: Nationwide’s unique Vanishing Deductible program reduces your deductible for every year of safe driving, up to a certain limit.
Claims-Free Discount: Drivers who remain claims-free for a specified period may qualify for discounts on their insurance premiums.

It provides high-risk drivers with usage-based programs and discounts for safe driving and claims-free behavior.

Types Of Coverage Available for High-Risk Drivers?

Here’s an overview of the types of coverage available for high-risk drivers:

Liability Insurance

Liability insurance is a mandatory type of coverage in most states. It covers the cost of injuries and property damage you cause to others in an accident. High-risk drivers may face higher premiums for liability coverage due to their increased risk of causing accidents.

Collision Coverage

Collision coverage pays for repairs to your vehicle if it’s damaged in an accident with another vehicle or an object, regardless of fault. This coverage can be beneficial for high-risk drivers who may be more likely to be involved in accidents.

Comprehensive Coverage

Comprehensive coverage pays for damage to your vehicle from non-collision events such as theft, vandalism, fire, and natural disasters. It’s optional but often recommended for high-risk drivers, especially those with newer or more valuable vehicles.

Uninsured/Underinsured Motorist Coverage

This coverage protects you if you’re in an accident with a driver who has little or no insurance. It can be particularly important for high-risk drivers who may face a greater chance of encountering uninsured drivers.

Medical Payments (MedPay) or Personal Injury Protection (PIP)

MedPay or PIP coverage pays for medical expenses for you and your passengers, regardless of fault. PIP also covers lost wages and other related expenses. Some states require this coverage, and it can be beneficial for high-risk drivers who want added protection.

Rental Car Reimbursement

This optional coverage helps pay for a rental car while your vehicle is being repaired after a covered accident. High-risk drivers may find this coverage helpful if they rely on their vehicles for daily transportation.

Gap Insurance

Gap insurance is beneficial for high-risk drivers who finance a new vehicle. It covers the difference between what you owe on the car loan and the actual cash value of the vehicle if it’s totaled in an accident.

Roadside Assistance

Roadside assistance is an optional coverage that provides help in case of a breakdown, flat tire, or other roadside emergencies. High-risk drivers who drive frequently may find this coverage helpful.

Usage-Based Insurance

Some insurers offer usage-based insurance programs that track driving habits using telematics devices. High-risk drivers who demonstrate safe driving behavior through these programs may be eligible for discounts.

How Do I Get Car Insurance for High-Risk Drivers?

Follow these steps to secure the best high-risk car insurance:

Assess Your Risk Level: Understand why you are considered high-risk (e.g., traffic violations, accidents, age, credit history) and how it may impact your insurance options.
Research Multiple Insurance Companies: Look for insurers that specialize in high-risk drivers. Compare the coverage options and premiums offered by different companies to find the best fit for your needs.
Obtain Quotes: Request quotes from several insurance providers to compare premiums and coverage levels. Make sure to provide accurate information about your driving history and risk factors.
Explore Usage-Based Insurance: Some insurers offer telematics or usage-based programs that monitor your driving habits and offer potential discounts for safe driving.
Consider State-Run Risk Pools: In some states, high-risk drivers who cannot find coverage in the standard market may be eligible for state-run risk pools that provide basic coverage.
File an SR-22 Certificate: If required by your state, an SR-22 form (proof of financial responsibility) may be necessary for high-risk drivers. Some insurers can assist with filing this form.
Evaluate Payment Options: Look for flexible payment plans that suit your budget. Some insurers offer monthly or installment plans that may be helpful.
Review the Terms and Conditions: Carefully read the policy’s terms and conditions to understand coverage limits, deductibles, and any exclusions.
Purchase the Policy: Once you find the right policy, purchase the insurance and keep a record of the policy documents.

Factors To Consider When Choosing an Insurance Company for a High Risk Policy

When selecting an insurance company for a high-risk policy, consider the following factors:

Reputation and Reliability: Choose an insurer with a strong reputation for reliability and excellent customer service. Research reviews and ratings from other customers to gauge their experiences.
Coverage Options: Look for insurers that offer a variety of coverage options for high-risk drivers, such as liability, collision, and comprehensive coverage.
Cost and Premiums: Compare premiums from different insurers, and consider how coverage levels and deductibles impact the overall cost. Be sure to get quotes from multiple providers.
Discounts and Incentives: Ask about discounts available for high-risk drivers, such as safe driving discounts, bundling discounts, and discounts for taking defensive driving courses.
Usage-Based Insurance Programs: Explore usage-based insurance options (e.g., telematics programs) that track driving habits and offer discounts for safe driving.
Claims Handling: Assess how insurers handle claims and the ease of the process. A smooth claims process is essential in the event of an accident.
Financial Stability: Check the financial stability of the insurance company to ensure they can handle claims and payouts.
Flexibility and Customization: Look for insurers that offer flexibility in customizing your policy to meet your specific needs and budget.
State Requirements: Make sure the insurer meets all state requirements for high-risk policies, including SR-22 filings if necessary.

How to Save Money on High-Risk Car Insurance

High-risk car insurance can be expensive, but there are strategies to help you save money:

Maintain a Clean Driving Record: Avoid traffic violations and at-fault accidents. Over time, this can help improve your risk profile and lower your premiums.
Take Defensive Driving Courses: Completing a state-approved defensive driving course can lead to discounts on your insurance premiums.
Bundle Policies: Consider bundling your auto insurance with other policies (e.g., home or renters’ insurance) to qualify for multi-policy discounts.
Increase Your Deductible: Opting for a higher deductible can lower your monthly premiums, but be sure you can afford the deductible in the event of a claim.
Shop Around for Quotes: Regularly compare quotes from different insurers to find the best rates. Shopping around can help you discover new discounts and options.
Utilize Usage-Based Insurance: Some insurers offer telematics programs that track driving habits and reward safe driving with discounts.
Limit Mileage: Reducing the amount you drive each year can lower your premiums. Consider carpooling, using public transit, or working from home when possible.
Choose a Safe Vehicle: Opt for a vehicle with good safety features and high safety ratings. Vehicles equipped with anti-theft devices may also qualify for discounts.
Improve Your Credit Score: If your credit score is affecting your premiums, work on improving it over time by paying bills on time and reducing debt.
Pay Premiums Annually: If possible, pay your insurance premiums annually instead of monthly to avoid additional fees.

Frequently Asked Questions

What Is High-Risk Auto Insurance?

High-risk auto insurance is a type of car insurance designed for drivers who are considered higher risk by insurance companies due to a history of accidents, traffic violations, DUI convictions, or other risk factors. High-risk insurance typically comes with higher premiums and may offer fewer coverage options compared to standard insurance.

What Is An SR-22 Form, And Do I Need One?

An SR-22 form is a certificate of financial responsibility required by some states for high-risk drivers. It proves that you have the minimum required insurance coverage. If you have a serious violation, such as a DUI, or a history of driving without insurance, your state may require an SR-22 form.

What Types of Coverage Are Available for High-Risk Drivers?

High-risk drivers typically have access to the same types of coverage as other drivers, including liability, collision, comprehensive, uninsured/underinsured motorist, and medical payments/PIP coverage. However, the availability of certain coverage options and premium costs may vary depending on the insurer.

Can I Improve My Risk Profile and Become a Standard-Risk Driver?

Yes, you can improve your risk profile over time by maintaining a clean driving record, avoiding accidents and violations, taking safe driving courses, and practicing safe driving habits. Over time, this may help you qualify for lower premiums and standard-risk policies.

Check Out: