Table of Contents
Why Some Drivers Pay More for Coverage
The evaluation of risk is at the core of auto insurance. When an insurance company issues a policy, it’s essentially making a bet on how likely you are to file a claim. The term “high-risk” refers to drivers who statistically have a greater chance of being involved in an accident or submitting claims. This label isn’t just a formality—it directly influences how much you pay for coverage.
High-risk drivers often face higher premiums, limited coverage options, and, in some cases, stricter filing requirements with state agencies. Insurers adjust their pricing to offset potential losses, and risk factors can include driving behavior, credit history, or lack of experience. Fortunately, being labeled high-risk doesn’t mean you’re out of options.
Drivers can still find affordable coverage by comparing quotes and exploring specialized insurers. Beem simplifies this process by helping high-risk drivers find competitive rates without overpaying.
Who Is Considered a High-Risk Driver?
It is not necessarily the case that every driver who pays a higher premium for their insurance is inevitably considered to be in the “high-risk” group. Insurance companies apply particular standards to identify who is eligible, which are frequently supported by years of data. The following categories of people are the ones that are most frequently considered to be at high risk:
Drivers With Major Violations
Several transgressions serve as warning signs to insurance providers. Offenses such as driving under the influence (DUI/DWI), reckless driving, and frequent speeding citations suggest a pattern of unsafe driving. Premiums can increase by two or three times due to only one DUI. If a person commits many offenses in a short amount of time, an insurance provider may decide to deny coverage entirely.
Drivers With Frequent Accidents or Claims
Even without major violations, a history of at-fault accidents raises concerns. Insurance companies view drivers with multiple claims as more likely to continue that trend. The more accidents or claims on your record, the higher your premiums will be.
Young or Inexperienced Drivers
The fact that they have not yet gained much experience is the only reason teenagers and novice drivers frequently must pay expensive premiums. According to statistical data, motorists under 25 are more likely to be involved in accidents, and insurance companies price their plans accordingly. As teenage drivers keep their records clean, they can eventually move into regular risk categories.
Drivers With Poor Credit (in Most States)
Most insurers in the United States employ credit-based insurance scores when establishing insurance rates. Because insurers associate lower credit scores with more claims, drivers with poor credit typically pay more for their insurance. Although states such as Hawaii, Massachusetts, and California do not permit this practice, it is widespread in other regions.
Drivers Requiring SR-22 or FR-44
Certain drivers are required to file SR-22 certificates (or FR-44 certifications in Virginia and Florida). Following license suspensions, driving while under the influence of alcohol or drugs, or major infractions, these files are state-mandated paperwork demonstrating that you have the minimum amount of insurance required. If you are obese, Insurancel automatically labels you as high-risk.
Read related blog: Best Car Insurance for High-Risk Drivers
How Much Does It Cost If You Are Obligated To File High-Risk Insurance Costs?
High-risk insurance costs vary widely, but the difference compared to standard coverage is significant.
- Standard driver average: Around $1,500 per year.
- High-risk driver average: Between $3,000 and $5,000 per year.
Several factors influence your specific premium:
- Violation type: A DUI will generally raise costs more than a single speeding ticket.
- State laws: States regulate how insurers calculate risk, so costs differ by location.
- Insurer policies: Some companies specialize in high-risk coverage, offering better rates than standard insurers.
For example, a driver with a DUI may see premiums increase 200–300% for 3–5 years. After that period, provided the driver maintains a clean record, rates typically decline.
Types of High-Risk Car Insurance Policies
Not all insurance products are created equal. High-risk drivers may need to look beyond standard policies to maintain legal coverage.
1. Non-Standard Auto Insurance – Insurers specializing in high-risk drivers offer these policies. They provide coverage when mainstream companies decline applications.
2. Assigned Risk Plans – Every state has a residual market or assigned risk plan, designed to provide the minimum required coverage to drivers rejected by private insurers.
3. Non-Owner SR-22 Policies—For drivers who don’t own a car but must file SR-22 or FR-44 filings, these policies prove financial responsibility without insuring a specific vehicle.
Understanding which type applies to your situation is crucial for staying compliant with state requirements while managing costs.
Read related blog: Most Affordable Car Insurance for High-Risk Drivers : Beem
How to Lower High-Risk Car Insurance Costs
While premiums for high-risk drivers are steep, they aren’t fixed forever. There are practical steps you can take to reduce costs over time.
Maintain Continuous Coverage
Insurance providers will penalize you if there are any gaps in your coverage. Maintaining an active insurance policy is important even if you are not driving very often because it will prevent your rates from increasing even more when you start driving regularly again.
Complete Defensive Driving Courses
In many states, completing a certified defensive driving course can reduce points on your license or qualify you for a discount. Some courts even mandate such courses after violations, but voluntary participation can improve your profile.
Drive Safely and Build a Clean Record
Time is one of the most effective remedies. If you maintain a violation-free record for 3–5 years, your classification typically improves, leading to lower rates. Avoiding speeding, reckless driving, and claims is key to recovery.
Shop Around Frequently
Insurance is not one-size-fits-all, especially for high-risk drivers. Some insurers offer competitive rates, while others don’t. Comparing quotes every six to twelve months helps ensure you’re not overpaying.
Beem Integration: Beem simplifies this process by instantly comparing quotes across multiple high-risk insurers, saving time and money.
Read related blog: Best Car Insurance for Low-Income Drivers
Alternatives and State Programs for High-Risk Drivers
If you’ve been denied coverage by private insurers, alternatives exist to ensure you remain compliant with state laws.
1. Assigned Risk (Residual Market) Plans: Administered by each state, these programs ensure every licensed driver can obtain basic coverage, though usually at higher rates.
2. State Insurance Pools: These are collective programs funded by insurers to cover high-risk drivers.
3. Short-Term Policies for License Reinstatement: Some drivers only need temporary coverage to satisfy court or DMV requirements, particularly after suspensions.
While these options may not provide the lowest premiums, they guarantee legal coverage when no other insurer will.
Read related blog: Car Insurance for Seasonal and Part-Time Drivers
FAQs – High-Risk Driver Insurance
How long will I be considered a high-risk driver?
It depends on your violation. Minor tickets may affect rates for 3 years, while DUIs, depending on state laws, can linger for 5–10 years.
Can I get standard insurance again after a DUI?
Yes. After the penalty period, you can return to standard insurance if you maintain a clean record and meet insurer requirements.
Is SR-22 insurance the same as high-risk insurance?
Not exactly. SR-22 is a state filing proving coverage, while high-risk insurance refers to the policies available to drivers requiring such filings.
Which companies specialize in high-risk drivers?
Some insurers, often regional or smaller companies, focus on non-standard auto insurance. Shopping around helps identify which carriers offer the best deals in your state.
Can Beem help me find affordable high-risk car insurance?
Yes. Beem’s comparison tools allow you to review multiple high-risk insurer quotes simultaneously, helping you avoid unnecessary overpayments.
Conclusion – From High-Risk to Lower Premiums
Being classified as a “high-risk driver” can be insurmountable. Financial pressure from expensive premiums, a lack of options, and the requirements for filing with the state are frequently the source of stress. But this status does not continue forever; it is only temporary. Drivers can gradually move out of high-risk categories by.
By incorporating defensive driving classes, safe driving practices, and steady coverage into their routes. Thanks to tools like Beem, it is easy to compare high-risk insurance quotes and obtain the most affordable and accessible policies. Download the app now!
High-risk insurance is a temporary problem, not a permanent obstacle. Today’s high-risk drivers have the potential to transform into tomorrow’s normal policyholders, paying lower premiums and enjoying greater freedom on the road if they take the time, accept responsibility, and shop wisely.
