Finding Affordable Car Insurance for High-Risk Drivers: Options and Tips
If you’re considered a high-risk driver, finding affordable car insurance can feel like an uphill battle. Whether it’s due to a DUI, multiple speeding tickets, at-fault accidents, or being a young driver, your driving history can significantly impact your insurance premiums. But don’t worry, there are still options available to help you find the coverage you need without breaking the bank.
Who Are High-Risk Drivers?
Insurance companies typically classify drivers as “high-risk” if they have a higher likelihood of filing a claim. This can be due to various factors, including:
- Driving Record: DUI convictions, speeding tickets, at-fault accidents, and reckless driving convictions all contribute to a high-risk profile.
- Age: Young drivers, especially teenagers, are statistically more likely to be involved in accidents due to inexperience.
- Insurance Coverage History: Lapses in coverage can signal irresponsibility to insurers and increase your risk profile.
- Credit Score: In many states, poor credit can lead to higher insurance premiums as it’s seen as an indicator of potential risk.
Options for High-Risk Drivers
While finding affordable insurance can be challenging, high-risk drivers have several options:
1. Standard Insurance Companies:
Some standard insurance companies offer non-standard policies for high-risk drivers. While these policies may come with higher premiums, they often provide better coverage and customer service compared to non-standard insurers.
Here are a few companies known for offering coverage to high-risk drivers:
- USAA: Often considered the cheapest option overall, with accident forgiveness and numerous discounts.
- State Farm: Offers smaller rate increases after infractions and robust coverage nationwide.
- American Family Insurance: Provides above-average review scores and an accident forgiveness option.
- GEICO: Has competitively priced options for high-risk drivers and offers SR-22 filings in most states.
2. Non-Standard Insurance Companies:
These companies specialize in insuring high-risk drivers. They may be a good option if you’ve been denied coverage by standard insurers. However, they often have higher premiums and potentially lower customer satisfaction ratings.
Some non-standard insurance companies include:
- The General: Specializes in high-risk auto insurance, particularly for drivers with bad credit, at-fault accidents, or lapses in coverage.
- Progressive: Offers non-standard policies alongside standard options.
- Kemper: Another option for non-standard coverage.
3. State-Sponsored Automobile Insurance Plans:
If you’re unable to find coverage through standard or non-standard insurers, your state may offer a high-risk insurance plan. These plans are typically more expensive but ensure that even the highest-risk drivers can obtain coverage.
Tips to Save on Car Insurance
Here are some tips to help high-risk drivers find more affordable car insurance:
- Shop Around and Compare Quotes: Get quotes from multiple insurance companies, including both standard and non-standard insurers, to find the best rates and coverage.
- Consider Usage-Based Insurance: Programs like telematics, which track your driving habits, can help demonstrate safe driving and potentially lower your premiums.
- Take a Defensive Driving Course: Completing a defensive driving course can often lead to discounts on your insurance.
- Improve Your Credit Score: If your state uses credit scores as a rating factor, work on improving your credit to potentially lower your insurance costs.
- Increase Your Deductible: Opting for a higher deductible can lower your premium, but ensure you can afford to pay it if you need to file a claim.
- Maintain a Clean Driving Record: Avoid accidents and traffic violations to gradually improve your risk profile and lower your rates over time.
- Ask About Discounts: Inquire about any available discounts, such as good student discounts, safe driver discounts, or multi-policy discounts.
Average Annual Rates with Infractions by Company
This table from The Zebra shows how average annual rates can change based on the number of violations you have:
| Company | No violations | 1 violation | 2 violations |
|---|---|---|---|
| Allstate | $2,413 | $2,891 | $2,526 |
| American Family | $1,568 | $1,954 | $1,820 |
| GEICO | $1,542 | $2,047 | $1,579 |
| Nationwide | $1,476 | $2,171 | $1,476 |
| Progressive | $1,882 | $2,465 | $2,135 |
| State Farm | $1,569 | $1,957 | $1,569 |
| USAA | $1,365 | $1,749 | $1,378 |
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Full-Coverage Rates After a 30-Day Coverage Lapse
ValuePenguin provides this table showing monthly rates after a lapse in coverage:
| Company | Monthly rate |
|---|---|
| Geico | $117 |
| State Farm | $172 |
| The General | $263 |
| Allstate | $286 |
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Full-Coverage Rates After Two Recent Speeding Tickets
Here’s another table from ValuePenguin showing monthly rates after two speeding tickets:
| Company | Monthly rate |
|---|---|
| Geico | $188 |
| State Farm | $238 |
| The General | $263 |
| Allstate | $286 |
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Full-Coverage Rates After a DUI with an SR-22
This table from ValuePenguin shows monthly rates after a DUI with an SR-22:
| Company | Monthly rate |
|---|---|
| Geico | $217 |
| State Farm | $252 |
| The General | $292 |
| Allstate | $453 |
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Full-Coverage Rates for an 18-Year-Old with a Recent Ticket
And finally, this table from ValuePenguin shows monthly rates for a young driver with a recent ticket:
| Company | Monthly rate |
|---|---|
| Geico | $304 |
| State Farm | $508 |
| The General | $634 |
| Allstate | $695 |
Conclusion
Finding affordable car insurance as a high-risk driver requires diligence and research. By exploring different options, comparing quotes, and taking steps to improve your risk profile, you can find the coverage you need at a price you can afford. Remember that maintaining a clean driving record and responsible financial behavior are crucial for lowering your insurance costs in the long run.