High-risk drivers pay significantly higher premiums than safe drivers do. This doesn’t mean that as a high-risk driver, you have no options. Insurance companies price risk differently, so if you research and shop around, you should find affordable car insurance for high-risk drivers. You can also improve your driving record to reduce your premiums.
We look at your high-risk auto insurance options and what you can do to reduce the cost of car insurance for bad drivers over time.
Identifying high-risk drivers
High-risk drivers often face difficulty finding affordable high-risk drivers insurance because of their increased likelihood of being involved in an accident and filing a claim. A high-risk driver is one that the insurers regard as a higher risk for accidents. Several criteria could put you in a high-risk driver insurance category. These include:
Younger drivers don’t have as much driving experience, so they are more likely to have an accident. If you’re younger than 25, you’re considered high risk.
If you’ve been fined for traffic infringements, your insurer may increase your premiums. As you might expect, convictions for DUI/DWI will also adversely affect your insurance premiums as you’re considered a high-risk driver
Accidents where you’re at fault
Your insurance company will see at-fault accidents as an indicator that you’re an unsafe driver.
Though Hawaii, California, and Massachusetts don’t allow insurers to use credit scores, insurers in other states will consider you high risk if you have a low credit score. Statistics show that people with low credit scores are more likely to have accidents.
If you’ve canceled or left your premiums unpaid, you’ll likely have to pay more for insurance when you reapply.
Tips for securing affordable car insurance for high-risk drivers
Car insurance is obligatory in most states in the U.S. If you’re a high-risk driver and face high premiums, you may have to compromise to keep your monthly premiums within budget.
Opt for a higher deductible
Raising the deductible can reduce premiums, as the insurance company pays less if an accident occurs. Before agreeing to a higher deductible, make sure can afford to pay the higher amount if you have to claim.
Compare insurance companies
If you’re a high-risk driver, look for a reputable specialist high-risk insurance company. Insurance companies handle risk differently, so compare product offerings to find the best insurance for high-risk drivers.
Shop around for the right policy
It pays to shop around to compare insurance deductibles, discounts and premiums. Doing your research before signing up will help you choose the most affordable car insurance for high-risk drivers. Evaluate whether the high-risk driver’s insurance covers your needs by reading the small print.
Consider the services you’ll need
Most insurance contracts offer several peripheral services. Though they may appear to be part of the package, extra services come at a cost. Consider what extra services you need with your car insurance for high-risk drivers. Do you need roadside assistance, rental car coverage, or legal services, or can you do without them?
Opt for less coverage
Most states require drivers to carry minimum coverage. Minimum coverage is a third-party liability for injury to others or damage to third-party property. Full coverage insurance will include collision and comprehensive insurance. The latter covers non-collision losses like fire and theft.
You don’t have to take full coverage if you can’t afford it. But if you don’t cover for damage to your own vehicle, you will have to carry the loss yourself. If you have auto-finance, this may not be an option.
Assess whether you’re eligible for discounts
Many car insurers offer discounts. If there are any discounts offered, include them in your selection criteria.
Read through the policy carefully before signing
Don’t get taken by surprise when the time comes to pay your premiums or claim against the insurance. Read through the policy carefully before you sign on the bottom line. You must ensure that the policy provides the coverage you need before committing yourself.
Renegotiate your car insurance every year
As time passes, you should rise from your high-risk position. You should pay the insurance premium that matches your level of risk. Unless you’re actively involved in managing the price you pay, you may end up paying too much for your high-risk auto insurance.
How to improve your driver history
If you’re a high-risk driver, you’re paying a risk premium so it is worth doing what you can to improve your driver history.
Maintain a good driving record
Even if you have a history of speeding fines and accidents, good driving behavior will eventually clear you from the category of high-risk driving. Stick to the rules of the road and do whatever you can to maintain a good driving record.
Consider taking a driving course
If you’re serious about reducing your high-risk auto insurance premiums, it may be worth taking a defensive driving course. Some insurers will discount your premiums once you have taken a defensive driving course or completed an approved driver safety program.
Work toward improving your credit score
Your credit score is vital, not just for your insurance but also at times when you need a loan. You can quickly improve yours in a few easy steps:
- Regularly review your credit reports.
- Make on-time payments against loans and invoices.
- Use less than 30% of your available credit.
- If you don’t have credit, your score may also suffer as it is a record of regular payments that help to build your credit score. Open an account, keep the credit affordable and pay regularly to improve your credit rating.
- If you have several accounts, consider debt consolidation. It may help you pay less interest and reduce the immediate repayment burden.
Take Action To Reduce The Cost Of High-Risk Driver’s Insurance
Car insurance for bad drivers costs more. Insurance companies see you as a higher risk and charge accordingly. Still, there are actions that you can take to reduce high-risk driver’s insurance premiums. Do your research, shop around, and read the small print. Negotiate your premiums on an annual basis, and work at improving your insurance status over time.
Who is considered high-risk for auto insurance?
Auto insurance companies may consider you a high risk for several reasons, including your age and driving record.
How long is a high-risk car insurance policy?
At-fault accidents and speeding fines could leave you with high-risk insurance for three to five years.
Who are the most high-risk drivers?
Drivers younger than 25 are considered the most high-risk.