High Risk Auto Insurance: What You Need to Know

Shot of angry policeman reprimanding a worried driver

Most states require drivers to carry car insurance that satisfies minimum liability coverage requirements. If you have a bad driving record, obtaining proper insurance coverage for your vehicle can be difficult. High-risk auto insurance can be costly and some insurers turn down high-risk drivers. Luckily, there are some insurance companies that specialize in providing high-risk auto insurance for those who need it.

Certain questions can come to mind if a car insurance company only decides to give you a quote for high-risk insurance. What exactly is high-risk car insurance? Why is there a different classification of insurance for high-risk drivers? Is there any real difference in protection? Who needs it? Where can you buy it if you need it? Let’s get some answers for to these questions and get more details about high-risk auto insurance.

What is High-Risk Auto Insurance?

High-risk auto insurance is a category of insurance that is specially made to cover drivers that are seen as a “high-risk” in the standard market. There are insurers that will refuse to cover drivers that they deem to be too high of a risk to provide coverage.

However, many states require drivers to have minimum liability auto insurance coverage. Because these states cannot legally let people drive with no insurance, there is a secondary market that has spawned high-risk insurance companies that specialize in covering high-risk drivers and gives incentive for standard market insurers to provide high-risk insurance products. High-risk auto insurance typically offers the same benefits and protections as other car insurance plans, but at a much higher price due to the higher risk that the insurance company is taking.

Who Needs High-Risk Auto Insurance?

There are a variety of different reasons why you may need to buy high-risk insurance instead of a standard auto insurance plan. However, the most primary reason for needing to buy high-risk is coverage is because the driver has a poor driving record. You may be a candidate for high-risk car insurance if you:

  • Are caught driving without insurance
  • Accrue too many traffic violations
  • Have a DUI/DWI on your record
  • Were involved in an injury-causing car accident in the past
  • Have a lapse in your insurance coverage
  • Have a poor credit history
  • Have a history of high insurance claim payouts
  • Are under the age of 25
  • Are over the age of 65
  • Are a first time driver

There are some other factors that could classify you as a high-risk driver, but those are the main reasons.

Are SR-22 and High-Risk Auto Insurance the Same Thing?

SR-22 insurance is different from a high-risk insurance plan. An SR-22 isn’t really an insurance policy, but is a certificate of verification provided by the insurance company that proves that you have sufficient liability insurance to legally drive. The only time you need an SR-22 is when a judge requires you to have one. There is a high penalty for no insurance, so an SR-22 helps vouch for poor drivers if they are questioned by police or the DMV. However, you may still be seen as a high-risk driver by insurance companies even if you don’t require an SR-22.

In short:
If you need an SR-22, you will also need high-risk auto insurance
If you need high-risk auto insurance, you don’t need an SR-22 unless required by a judge

Where Can I Purchase High-Risk Auto Insurance?

While there are some insurance companies that won’t insure high-risk drivers, there are several who do. There are even some companies that specialize in providing insurance plans for high-risk drivers. Consumers should be forewarned that even the lowest rates for high-risk auto insurance will still be at a higher price than similar coverage on a standard car insurance policy.

Will I Always Have to Buy High-Risk Auto Insurance?

Time fades all errors. You may be able to change your status and be able to purchase standard car insurance plans if you don’t add any further infractions on your record, improve your credit score, or display other forms of proof that you are a responsible driver and a lower risk. Insurers will feel more comfortable offering insurance at their regular rates once your driving record is clean. While it may take some time, you won’t have to pay higher rates for auto insurance if you make improvements and avoid further mistakes.

Now that you know what high-risk auto insurance entails, you may be looking for a policy that will cover you. Freeway Insurance specializes in obtaining high-risk auto insurance and SR-22 coverage at the best prices available. Get a free car insurance quote online or call us today to get covered.