What is High-Risk Auto Insurance?
High-risk car insurance is the same as regular car insurance – it just costs more. It is typically more expensive since insurance companies feel that a high-risk driver is more likely to file a claim. They are proactively buffering the company against any future claims by a driver who is labeled high-risk.
Many people have driving records that are less than perfect. High-risk car insurance, more commonly referred to as “Non-Standard” insurance or insurance for high-risk drivers, refers to a type of car insurance policy that is sold to a high-risk driver. Typically, drivers who fall into this category have higher car insurance rates and are more difficult to get insurance coverage.
Some auto insurance carriers only insure drivers with spotless driving records, but at Freeway Insurance, we are happy to help all drivers get on the road legally – and with an affordable high-risk auto insurance quotes that meets the budget.
How Much Does High-Risk Car Insurance Cost?
Anywhere from 10% to 90% more than regular car insurance. A variety of factors, including what state you live in and why you need to buy high-risk insurance, are major factors. Not all insurance companies will insure high-risk drivers. Drivers will need to look for high-risk auto insurance companies when they require that type of insurance.
Let’s take a look at some of the reasons you may need high-risk insurance and how much more it might cost.
|Reason For High-Risk Insurance||Average National Annual Cost Full Coverage||Cost After Event||Percentage Increase|
Some states have higher car insurance rates to begin with, such as Michigan ($2,309) and Louisiana ($2,724), while other states are considered low-cost car insurance states, such as Maine ($965) and North Dakota ($1,264). If you live in a state that has high insurance costs to begin with, your high-risk car insurance quote is going to be higher.
There are some steps you can take to reduce the price tag on your high-risk auto insurance. These include shopping around and comparing auto insurance quotes and finding car insurance discounts that might help. Taking a defensive driving course may show a potential insurer that you are serious about improving.
Keep in mind that not all insurance companies will insure high-risk drivers or provide DUI insurance. You may have to do some research to find one that will insure you at a cheap rate. That’s where Freeway Insurance shines – we do the research for you as an independent agency.
Remember, if you take proactive steps, stay current with your insurance premium and don’t accumulate any more dings on your record, you’ll see lower car insurance premiums in your future. There is life after high-risk auto insurance!
What Classifies You As a High-Risk Driver?
Anyone who is more likely to file an insurance claim is considered a high-risk driver. Most auto insurance companies will look at your driving record – or lack thereof – to determine whether you are considered in a high-risk category behind the wheel. During the underwriting process, insurance companies look at collective information about drivers who have proven to be less responsible and exhibit riskier behavior while driving, such as getting into car accidents. So, even though you may be the shining exception to the rule, your car insurance premium is still going to reflect the statistics due to something in your background driving history. This could be:
- Traffic tickets – Whether singular or plural, getting a ticket for reckless driving, speeding or almost anything else can affect your premium.
- Car Accidents – If you are in an accident, even if it’s not your fault, you may get dinged on your premium if you file a claim.
- Credit history – Some states do not allow insurance companies to look at credit history anymore (California, Hawaii, Massachusetts and Michigan). Others are making it harder for insurers to use that as a determining factor. Still, as a collective group, those with poor credit file more claims.
For drivers in their early 20s and teens, the lack of a driving record is what hurts. Because drivers in this age group, especially males, have exhibited less responsibility and have less experience, they are considered in the high-risk driving group. Collectively, this group tends to accumulate more traffic tickets and get in more accidents than older drivers.
Finally, drivers who have been ordered by their state DMV or a court to file an SR-22 certificate will be considered high-risk category. In most cases, drivers who have been convicted of driving under the influence of drugs or alcohol are looking at higher rates.
Where Can I Get High-Risk Insurance?
There are plenty of insurance companies that sell what is called high-risk car insurance. There are also some that don’t handle this type of motorist. If you get turned down, keep looking. Just be aware that not all high-risk car insurance is the same. If possible, you’ll want to shop around and compare car insurance quotes to make sure you are getting the best deal. At Freeway Insurance, we do the work of comparing insurance costs for you, so you can spend your time getting your life back on track after the stress of a car accident or a DUI.
If you’ve had multiple dings on your record, you may get to a point where even non-standard insurance companies will not insure you. If that happens, your state will have what is called pool insurance that is specifically geared for high-risk drivers that cannot find insurance anywhere else.
Get a Free High-Risk Vehicle Insurance Quote Today
If you’re a high-risk driver in search of cheap car insurance, Freeway Insurance can help. Freeway can get you insured regardless of your driving record. Request a free auto insurance quote online, over the phone, or by visiting one of our local offices.