Auto insurance is essential for every driver, but not all drivers qualify for standard coverage at affordable rates. Some individuals are labeled as “high-risk drivers” by insurance companies, meaning they are more likely to file a claim due to past driving behavior, age, or other circumstances. For these drivers, high-risk auto insurance becomes necessary.
What Is High-Risk Auto Insurance?
High-risk auto insurance is specialized coverage designed for drivers who have a greater chance of being involved in accidents, receiving traffic violations, or filing insurance claims. Because the risk of financial loss to the insurer is higher, the premiums for this type of insurance are usually more expensive.
Who Is Considered a High-Risk Driver?
Insurance companies may classify you as high risk if you fall into one of the following categories:
- Multiple traffic violations (speeding, reckless driving, etc.)
- DUI/DWI convictions (driving under the influence of alcohol or drugs)
- At-fault accidents on your driving record
- Young or inexperienced drivers (typically under 25 years old)
- Drivers with poor credit scores (in states where credit affects insurance rates)
- Lapses in insurance coverage (periods of being uninsured)
- High-performance or luxury car owners, since repairs are costly
Why Is High-Risk Insurance More Expensive?
Premiums are based on the likelihood of claims. High-risk drivers statistically file more claims, so insurers raise rates to offset potential losses. For example:
- A driver with a clean record might pay $1,200 per year.
- A driver with multiple DUIs could pay $3,000 or more annually.
The exact amount depends on your state, insurer, and driving history.
How to Get High-Risk Auto Insurance
- Shop around – Rates vary widely among insurers, so compare multiple quotes.
- Look for insurers specializing in high-risk drivers – Some companies cater to this group.
- State-assigned risk pools – If no insurer accepts you, most states have an “assigned risk plan” where companies must provide coverage to high-risk drivers.
- Work on improving your record – Safe driving, defensive driving courses, and avoiding violations can lower rates over time.
Tips to Lower High-Risk Insurance Costs
- Maintain continuous coverage without lapses.
- Take a defensive driving course approved by your state.
- Improve your credit score (where applicable).
- Opt for a car that is cheaper to insure.
- Bundle your auto and home insurance to get discounts.
(FAQs)
1. How long will I be considered a high-risk driver?
Most violations stay on your record for 3–5 years, while serious offenses like DUIs may impact your rates for up to 10 years.
2. Can I be denied car insurance completely?
In most states, insurers can deny coverage, but you’ll still have access to state-assigned high-risk insurance programs.
3. Does high-risk auto insurance provide less coverage?
No. The coverage options (liability, collision, comprehensive, etc.) are usually the same as standard insurance, but the cost is higher.
4. How can young drivers avoid being labeled high risk?
By maintaining good grades, taking driver safety courses, and avoiding traffic violations, young drivers can reduce their risk profile.
5. Is SR-22 insurance the same as high-risk insurance?
Not exactly. An SR-22 is a certificate proving you carry insurance, often required after DUIs or major violations. High-risk insurance is the policy itself.