Car Insurance Reviews

Best Cheap Car Insurance for High-Risk Drivers – ValuePenguin

If you received a traffic ticket, have no driving experience, or have poor credit, insurers may consider you a high-risk driver and increase your premiums accordingly. but there is still hope. Many reputable companies will insure people with poor driving records, and if you’re having trouble finding insurance, your state’s auto insurance program may offer you an option.

If you’re interested in a list of insurance companies in your area with high-risk plans, enter your zip code above to get a quote.

Reading: Car insurance companies for high risk drivers

Which companies offer the cheapest high-risk auto insurance?

If your driving record puts you in one of the high-risk categories, some companies may have cheaper auto insurance rates than others when it comes to insuring you. We compared rates from several of the top insurance companies offering plans to higher-risk drivers, and geico consistently offered the lowest prices, with rates 36% cheaper than average.

While your rates will differ from our study’s sample rates, our list can help you decide where to start.

geico always offered the most affordable rates, presenting the least expensive option for each of our sample drivers, although state farm rates were also affordable.

The non-standard insurer we included in our survey, General, did not offer competitive rates to any of the drivers in our sample. however, high-risk drivers may find that major insurers won’t offer them a quote, while non-standard insurers like general are more likely to offer coverage.

This study is based on profiles of selected sample drivers, so your rates may differ. To find the cheapest high-risk auto insurance, you should always compare quotes from multiple companies.

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how to get insurance if insurers don’t cover you

Nearly all states require drivers to have auto insurance, but some insurance companies may deny coverage to high-risk drivers. In this case, there are two main options to consider: non-standard insurance companies and state-sponsored auto insurance plans. Unfortunately, both tend to charge drivers higher rates than the major providers.

Non-standard insurance companies are simply companies that specialize in providing coverage to people who have trouble getting a quote from another company. non-standard insurers tend to be more region-specific than the major providers, but the largest carriers include general, auto, and national general.

See also: No-Fault Insurance

Contact an insurance agent or broker to learn more about assigned risk plans, or read more about your state’s plan in the Auto Insurance Plan Services Bureau (aipso) directory.

Below we have noted the name and link to the state plan or mechanism for high-risk drivers in each state and the district of columbia.

who is a risky driver?

A prior DUI offense, age, gaps in insurance coverage, and credit scores can affect your risk profile and therefore influence your auto insurance premium.

The most common high-risk factors include:

How much more you’ll pay as an at-risk driver varies, but the more factors that apply to you, the higher your rates will be. younger drivers with a driving violation have the highest rates overall. Not all states use driver’s license points, but many of these high-risk factors will also add points to your license.

crime of dui

If you have been convicted of driving under the influence, your premiums will increase. Once he gets his license back, his insurer may need to file an SR-22 form on his behalf. This form confirms that you have automobile insurance with at least the limits required by the state. You may need to keep the SR-22 form on file for several years, and during this time, you’ll pay higher rates as a high-risk driver.

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multiple tickets

While a speeding ticket may not put you in the high-risk category, if you receive multiple violations or a ticket for driving much faster than the posted speed limit, you may have trouble finding an affordable rate.

young or first-time drivers

Research has shown that young drivers are more likely to exhibit risky driving behavior and get into car accidents, so insurance companies adjust their premiums accordingly.

Regardless of age, newly licensed drivers always face higher insurance rates than experienced drivers who have been driving for a longer period of time. There’s a way around this rule: Have a more experienced driver add it to your existing policy. this shortcut ensures that your premiums will be lower than if you decided to go it alone.

expiry of insurance coverage

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If you let your insurance lapse, either by canceling your policy or not paying your premium, you’ll find that your premiums are higher once you reapply. This is because a gap in coverage signals to insurers that you may not be financially reliable. The good news is that over time, and once you prove to the insurance company that you’re a responsible driver, your premiums will drop back to normal rates. The bad news is that it can take six months or more for your policy premiums to go down.

bad credit

People with poor credit history are also considered high-risk drivers. Insurance companies essentially place millions of bets on insurance policies, and to lower their risk, they want to insure the people who are least likely to file claims.

Insurers have found that checking your credit history is a quick and easy way to gauge how likely you are to file a claim. Fortunately, there are some insurance companies that don’t do credit checks, but you’ll have to shop around. Also, some states prohibit insurers from using credit history when calculating rates.

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other serious traffic violations

A dui is an example of a serious traffic violation, and your insurance premiums will also increase if you have any other type of serious traffic violation, such as hit-and-run, road rage, reckless driving, or speeding . however, higher insurance premiums may be the least of your worries, as some of these moving violations can be considered felonies that could result in jail time.

how can i find high risk car insurance?

The first step in finding a good rate for a driver with a bad record is to get multiple quotes online from multiple insurers and compare rates to choose the best plan.

Until you get your quotes, you can’t be sure which carrier will be able to offer you the lowest premium. And there are other steps you can take to lower your rate. With few exceptions, proactive measures such as the following can help improve your risk profile:

Just remember, your insurance company will want proof of these measures, so it’s best to keep good records and send them to the insurance company when you’re ready.

Although insurance companies may consider you high risk today, you’ll be pleased to know that your rates will decrease over time as you demonstrate that you’re a safe and responsible driver. Yes, certain things, like getting a DUI, will keep you paying higher premiums for a longer period, but most high-risk drivers can start paying lower rates after a year or two.

frequently asked questions

methodology

Auto insurance costs surveyed are for illustrative purposes only, and actual quotes will vary based on your physical residence, driving history and other factors. Valuepenguin’s analysis used insurance rate data from Quadrant Information Services. These rates were obtained publicly from insurer filings and should be used for comparison purposes only; your own quotes may be different.

See also: 6 Types of Car Insurance: What You Need in 2022

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