High-Risk Auto Insurance: All You Need To Know

by kwestfall - December 31, 2020

If you are a first-time car owner, you may find that shopping for car insurance can be a hassle. This can also be the case for individuals who own several vehicles and have been driving for years, especially if they are considered ‘high-risk drivers.’ If a driver is deemed ‘high risk’ by auto insurance companies, he/she will require high-risk auto insurance.

What is High-Risk Auto Insurance? 

High-risk auto insurance is a special type of insurance coverage offered to drivers who are considered to be more at high risk of getting into an accident and filing a claim than the average driver. Also referred to as non-standard insurance, high-risk car insurance is for drivers who don’t qualify for preferred insurance.

Who Is A Candidate For High-Risk Auto Insurance? 

As hinted above, the candidate for high-risk insurance is the high-risk driver. In order words, the candidate is a driver whose insurance companies feel more likely to be involved in an accident or file for a claim.

The common type of drivers considered high risks include:

  • First-time drivers
  • Teenage drivers
  • Older drivers (65 years and older)
  • Drivers with lapsed coverage or insurance gaps
  • Drivers involved in injury-causing car accidents in the past
  • Drivers with a history of high insurance claim payouts
  • Drivers with a poor credit history or no credit
  • Drivers with too many moving violations
  • Drivers with DUI or DWI convictions
  • Drivers with other serious violations  
  • Drivers caught driving without insurance.

As you can see, some of these factors can be controlled by drivers while some are entirely uncontrollable. For instance, you can try to improve your credit and driving history, but you can’t do anything about your age or being a first-time driver.

Where Can You Purchase High-Risk Insurance? 

Depending on why you are deemed a high-risk driver, some car insurance companies will not even offer you insurance coverage. You shouldn’t relent when the first company you approach refuse you insurance. Several companies offer insurance to high-risk drivers – some even specialize in high-risk insurance.

While finding an insurance company that will offer you high-risk auto insurance may not be a big problem, the challenging part is finding a company that will provide a reasonable rate. The unfortunate reality is that you may have to pay as much as 25% more in premiums for high-risk insurance than for a standard car insurance coverage.

You shouldn’t just jump at the first offer you find. You are free to shop around for better deals. Some companies offer cheap car insurance coverage for high-risk drivers, but it will never be the same as what good drivers get.

How Can You Lower Your High-Risk Insurance Cost? 

You can lower your high-risk insurance cost by becoming a better driver over time. You can do this by:

  • Taking a defensive driving course and drive defensively
  • Trade your car for a model with a better safety record or features
  • Follow all traffic laws
  • Improve your credit score

High-risk car insurance may be excessive, but it is still a blessing for some drivers. High-risk auto insurance covers those who, otherwise, wouldn’t have car insurance coverage. Are you a high-risk driver? Shop around before buying high-risk insurance coverage. You should also take the steps recommended above to improve your driving history and lower your risks. Time and years of good driving will fetch you better records that will qualify you for standard auto insurance.

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