Finding high risk car insurance shouldn’t feel like climbing Mount Everest, but if you’ve been labeled a “high risk driver,” you know the struggle is real. Whether you’re dealing with a spotty driving record, a recent DUI, or you’re simply a new driver without much experience, understanding high risk car insurance can save you thousands of dollars and endless frustration.
What is High Risk Car Insurance?
High risk car insurance is specialized coverage designed for drivers whom insurance companies consider more likely to file a claim. It’s not a separate type of insurance policy—rather, it’s standard auto insurance offered at higher premiums because of the perceived increased risk.
Insurance companies assess risk based on multiple factors. When you fall outside their preferred parameters, they either charge you more or decline to insure you altogether. This is where high risk insurance comes into play.
What Does High Risk Mean in Insurance?
In insurance terms, “high risk” refers to drivers who statistically have a greater probability of being involved in accidents or filing claims. Insurance companies use complex algorithms and historical data to determine who falls into this category.
You might be classified as high risk if you have:
- Multiple traffic violations or speeding tickets
- A history of at-fault accidents
- A DUI or DWI conviction
- A lapsed insurance policy or gaps in coverage
- Poor credit scores (in states where credit-based insurance scoring is allowed)
- Limited driving experience (new or young drivers)
- Certain high-performance or frequently stolen vehicles
What is High Risk Insurance Called?
High risk car insurance goes by several names depending on your location and situation. You might hear it referred to as non-standard auto insurance, assigned risk insurance, or SR-22 insurance (though SR-22 is technically a certificate proving you carry insurance, not a policy type).
In some regions, particularly in Canada, it’s called facility association insurance. Regardless of the terminology, the fundamental concept remains the same: it’s coverage for drivers who don’t qualify for standard insurance rates.
How Much is High Risk Insurance (A Month)?
The million-dollar question—or perhaps the thousand-dollar question—is what you’ll actually pay. High risk car insurance costs vary dramatically based on numerous factors, but you can expect to pay significantly more than standard rates.
On average, high risk drivers might pay anywhere from $200 to $500 per month, though costs can climb even higher depending on your specific circumstances. For comparison, the average driver pays around $140-180 per month for full coverage.
Several factors influence your monthly premium:
Best Insurance for High Risk Drivers
Not all insurance companies handle high-risk drivers the same way. Some specialize in this market, while others avoid it entirely. Finding the best insurance for high-risk drivers means looking for companies that offer competitive rates for your specific situation.
Top Companies for High Risk Drivers
Progressive: Known for being particularly accommodating to high-risk drivers, Progressive offers competitive rates and a user-friendly online platform. They insure drivers with DUIs, accidents, and poor credit.
The General: Specializing in non-standard insurance, The General focuses specifically on high-risk drivers and offers flexible payment options.
GEICO: While traditionally known for good drivers, GEICO high-risk insurance options are worth exploring. They sometimes offer surprisingly competitive rates even with violations on your record.
State Farm: With a vast network of agents, State Farm provides personalized service and may offer more flexibility in underwriting decisions.
Direct General: Another company specializing in high-risk drivers, Direct General operates in several states and provides local agent support.
Acceptance Insurance: Focuses exclusively on non-standard insurance and offers payment plans suited to various budgets.
How to Get High Risk Car Insurance
Getting high risk car insurance requires a strategic approach. Here’s your step-by-step roadmap:
1. Assess your situation: Understand exactly why you’re considered high-risk. Is it a recent violation, multiple tickets, or a lapse in coverage? Knowing this helps you target the right insurers.
2. Shop around extensively: This cannot be overstated. Rates vary wildly between companies for high-risk drivers. Get quotes from at least 5-7 different insurers, including both standard and specialty companies.
3. Consider an independent agent: Insurance agents who work with multiple companies can shop your policy around and find the best rates without you having to contact each company individually.
4. Look into state programs: Many states have assigned risk pools or similar programs that guarantee insurance availability to all drivers, though usually at higher rates.
5. Ask about discounts: Even as a high-risk driver, you may qualify for discounts like bundling policies, paying in full, taking defensive driving courses, or installing safety devices.
6. Be honest on your application: Misrepresenting your driving history will only cause problems when it’s time to file a claim.
High Risk Car Insurance Cost: Breaking Down the Numbers
Understanding what drives your high risk car insurance cost helps you find ways to reduce it. Here’s what impacts your rates most significantly:
Severity of violations: Not all violations are equal. A DUI will impact your rates far more dramatically than a minor speeding ticket. A DUI conviction can double or even triple your insurance costs for several years.
Time since violation: Most violations affect your rates for three to five years. The more time that passes without incidents, the more your rates should decrease.
Claims history: Multiple at-fault accidents signal to insurers that you’re likely to file future claims, dramatically increasing your costs.
Annual mileage: The more you drive, the more exposure to risk, which increases premiums. If you’re a high-risk driver who doesn’t drive much, make sure your insurer knows.
Deductible choices: Choosing higher deductibles can lower your premium, though you’ll pay more out-of-pocket if you file a claim.
Finding High Risk Car Insurance Near Me
Location matters tremendously in insurance pricing. Searching for “high risk car insurance near me” makes sense because local factors significantly impact your rates.
Urban vs. rural: Cities typically have higher rates due to increased accident frequency, theft rates, and vandalism.
State regulations: Some states have more consumer-friendly insurance regulations than others. Michigan requires unlimited personal injury protection, making it one of the most expensive states. Meanwhile, states like Maine and Idaho tend to have lower average rates.
Local insurers: Regional insurance companies sometimes offer better rates than national carriers for high-risk drivers in specific areas. They understand local risk factors better and may be more flexible.
Weather and geography: Areas prone to severe weather, flooding, or natural disasters typically see higher rates across the board.
High Risk Car Insurance Cheap: Is It Possible?
Yes, you can find relatively cheap high risk car insurance, though “cheap” is relative when you’re in this category. Here are proven strategies to lower your costs:
Take a defensive driving course: Many insurers offer discounts of 5-15% for completing an approved defensive driving course. These courses demonstrate your commitment to safer driving.
Improve your credit score: In most states, better credit leads to lower insurance rates. Pay bills on time, reduce debt, and correct any errors on your credit report.
Drive less: If you can reduce your annual mileage by working from home, carpooling, or using public transportation, you may qualify for low-mileage discounts.
Bundle policies: Combining your auto insurance with homeowners or renters insurance often yields significant discounts, sometimes 15-25%.
Choose the right vehicle: Before buying a car, research insurance costs. Sensible, safe vehicles with good crash ratings and lower theft rates cost less to insure.
Increase your deductible: If you have emergency savings, raising your deductible from $500 to $1,000 or even $2,000 can substantially lower your premium.
Maintain continuous coverage: Even if you’re not driving regularly, maintaining continuous coverage prevents gaps that further increase your rates.
Ask about usage-based insurance: Programs like Progressive’s Snapshot or State Farm’s Drive Safe & Save track your driving habits and can reward safe driving with lower rates.
GEICO High-Risk Insurance: What to Expect
GEICO high-risk insurance deserves special mention because many people wonder if this popular insurer covers high-risk drivers. The answer is yes, though with some caveats.
GEICO does insure drivers with violations, accidents, and even DUIs, but their willingness varies by state and the severity of your record. They may decline coverage for very recent DUIs or multiple serious violations.
What makes GEICO worth considering:
- Competitive rates even for imperfect driving records
- Excellent mobile app and online account management
- 24/7 customer service
- Multiple discount opportunities
- Strong financial stability and customer satisfaction ratings
However, GEICO may not be the cheapest option for all high-risk drivers. Their rates become less competitive as your risk profile increases. Someone with a single speeding ticket might find GEICO very affordable, while someone with a DUI and multiple accidents might pay significantly more than with specialty high-risk insurers.
Understanding High Risk Car Insurance Companies
Different high risk car insurance companies take different approaches to underwriting and pricing. Understanding these differences helps you find the best fit.
Specialty vs. standard carriers: Companies like The General and Direct General specialize in high-risk drivers, while standard carriers like State Farm and Allstate also write policies for higher-risk individuals but may be more selective.
National vs. regional: National companies offer consistency and often have more robust online tools, while regional insurers might provide more personalized service and occasionally better rates for your specific area.
Financial strength: Check ratings from AM Best or other rating agencies to ensure your insurer is financially stable. The last thing you need is your insurance company going out of business.
Customer service reputation: Read reviews and check complaint ratios through your state insurance department. Some companies are known for difficult claims processes, which matters enormously when you actually need to use your insurance.
Frequently Asked Questions
What is high risk car insurance?
High risk car insurance is standard auto insurance offered at higher premiums to drivers who insurance companies consider more likely to file claims. This includes drivers with traffic violations, accidents, DUIs, gaps in coverage, or limited driving experience.
What is the best insurance company for high-risk drivers?
The best company varies by individual circumstances, but Progressive, The General, GEICO, and State Farm frequently offer competitive rates for high-risk drivers. Shopping around and comparing quotes from multiple companies is essential, as rates can vary by hundreds of dollars per month.
What does high-risk mean in insurance?
High-risk means an insurance company has determined you have a greater statistical probability of filing a claim based on factors like your driving record, age, credit history, coverage gaps, or the type of vehicle you drive.
How do I choose the right high-risk policy?
Start by getting quotes from at least 5-7 companies, including both standard and specialty insurers. Compare not just prices but also coverage levels, deductibles, and customer service ratings. Consider working with an independent insurance agent who can shop multiple companies on your behalf. Look for discounts you qualify for and ensure the company is financially stable.
How long will I be considered high-risk?
Most violations remain on your driving record and affect your rates for three to five years, depending on the severity and your state’s regulations. DUIs typically impact rates longer than minor speeding tickets. Each year without new violations, your rates should gradually decrease.
Can I get high-risk insurance with a suspended license?
Generally, you cannot get active car insurance with a currently suspended license. However, you may be able to purchase an SR-22 or FR-44 certificate to help reinstate your license, and then obtain insurance once your driving privileges are restored.
Does high-risk insurance cover the same things as regular insurance?
Yes, high-risk insurance offers the same coverage options as standard insurance, including liability, collision, comprehensive, uninsured motorist, and personal injury protection. The difference is in the cost, not the coverage types available.
Will my rates ever go back to normal?
Yes, as violations age off your record and you demonstrate a period of safe driving, your rates will gradually decrease. After three to five years with a clean record, you should be able to qualify for standard rates again, though your history may still result in slightly higher premiums than someone with a completely clean record.
Moving Forward: Your Action Plan
Being classified as a high-risk driver isn’t permanent. View this as a temporary phase while you rebuild your driving reputation. Here’s your action plan:
Immediate steps: Get multiple quotes today, compare coverage options carefully, and select the best policy for your situation and budget.
Short-term goals: Drive defensively, avoid any additional violations, take a defensive driving course, and look for ways to qualify for additional discounts.
Long-term strategy: Maintain continuous coverage without lapses, gradually increase your coverage as your rates decrease, and work toward qualifying for standard insurance rates within three to five years.
Remember, every insurance company weighs risk factors differently. What one company considers unacceptable might be manageable for another. Your job is to find the company that views your specific situation most favorably, provide them with the information they need, and demonstrate through your actions that you’re committed to being a safer driver.
High risk car insurance might cost more today, but with patience, careful driving, and smart shopping, you can work your way back to affordable rates. The key is getting started, staying insured, and avoiding any additional incidents. Your future self—and your wallet—will thank you.
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