High Risk Auto Insurance: Everything You Need to Know

If you have a history of accidents, traffic violations or DUI, you may be considered a high-risk driver. This makes it harder for you to find affordable auto insurance. However, it’s still possible to get coverage, but you need to understand your options and how to compare quotes. In this article, we’ll explain what high-risk auto insurance is, who needs it, how to find it and answer some frequently asked questions.

What is High Risk Auto Insurance?

High risk auto insurance is coverage for drivers who are considered to be a higher risk for accidents or insurance claims. It’s often more expensive than standard coverage because insurers see high-risk drivers as more likely to file claims. High risk drivers can include those with a history of accidents, traffic violations or DUIs, drivers who are inexperienced or have a poor credit rating, and drivers of high-performance vehicles.

If you’re classified as high-risk, you may have more limited options when it comes to finding insurance coverage. Some insurers may refuse to cover you altogether, while others may only offer policies with higher premiums, lower coverage limits or stricter terms.

Who Needs High Risk Auto Insurance?

If you’ve been involved in multiple accidents, have several traffic violations, or have been convicted of DUI or other serious offenses, you may be considered a high-risk driver. Additionally, if you’re a new driver or have a poor credit score, you may also be considered higher risk.

It’s important to understand that your state may have minimum insurance requirements, regardless of your driving record. You’ll want to check with your state’s motor vehicle department or insurance department to find out what type of coverage you need.

How Much Does High Risk Auto Insurance Cost?

High risk auto insurance typically costs more than standard coverage because insurance companies see high-risk drivers as more likely to file claims. The exact cost will depend on a variety of factors, including your driving history, age, location, type of vehicle and other personal details. On average, high risk drivers pay about twice as much as standard-risk drivers.

It’s important to shop around and compare quotes from different insurers to find the best deal. You may also be eligible for discounts or other incentives that can help lower your premiums.

Types of High Risk Auto Insurance

There are a few different types of high risk auto insurance policies available, depending on your needs and circumstances. Here are some of the most common:

SR-22 Insurance

An SR-22 is a certificate of financial responsibility that proves you have the required amount of insurance coverage. It’s required in many states for drivers with a history of serious traffic violations, DUI or other offenses. You’ll need to file an SR-22 with your state’s motor vehicle department to have your driver’s license reinstated.

Non-Standard Auto Insurance

Non-standard auto insurance is coverage for drivers who have been declined by standard insurers or who need higher limits or customized coverage. Non-standard policies may have higher premiums and more limited coverage options than standard policies.

Cancellation Insurance

Cancellation insurance is a policy that covers you if your auto insurance is cancelled due to nonpayment or other reasons. If you’re a high-risk driver, cancellation insurance can help you avoid being without coverage if you’re dropped by your insurer.

How to Find High Risk Auto Insurance

Finding high risk auto insurance can be challenging, but it’s not impossible. Here are some tips to help you find coverage:

Shop Around

One of the key ways to find high risk auto insurance is to shop around and compare quotes from different insurers. Not all insurers will offer coverage to high-risk drivers, but some specialize in this area and may be able to provide more affordable rates.

Consider Non-Standard Insurers

Non-standard insurers may be more willing to provide coverage to high-risk drivers, but keep in mind that you may pay higher premiums or have limited coverage options.

Work with an Independent Agent

An independent insurance agent can help you find coverage from multiple insurers, which may increase your chances of finding affordable coverage.

Frequently Asked Questions

Now that you have a better understanding of high risk auto insurance, you’re better equipped to find the right coverage for your needs. Remember to compare quotes, ask questions, and work with an agent or insurer that specializes in high-risk coverage.