You may be categorized as a high-risk driver if you have a history of accidents, traffic rule violations, lack of driving experience, or poor credit. Finding good and affordable car insurance for high-risk drivers may be challenging, as companies charge higher rates or refuse to offer you a policy. But the good news is some agencies provide the best car insurance for high-risk drivers at reasonable rates.
In this blog, we will look more in detail at high-risk drivers and learn about the difference between the insurance offered to low-risk and high-risk drivers. If you consider yourself a risky driver, we will look at how you can find affordable, the best car insurance for high-risk drivers and the benefits.
Who Are High-Risk Drivers?
A risky driver is an individual who is considered to meet with accidents frequently or file insurance claims compared to an average driver. Many factors put an individual into high-risk driving, such as a history of at-fault accidents, traffic rule violations, and DUI (Driving Under the Influence) convictions.
Besides these driving errors, poor credit and unpaid insurance premiums can also categorize you as a high-risk driver. However, each insurance company has its rules to classify an individual as high-risk or not; they have their own underwritten guidelines. Some common examples of high-risk drivers include individuals with newly acquired driving licenses and inexperienced drivers.
How Car Insurance is Different for High-Risk Drivers
Here are some ways in which car insurance for high-risk drivers differs from a standard driver’s car insurance:
Higher Premiums
Insurers calculate the amount for both drivers similarly, but the difference lies in the premium a high-risk driver must pay. Insurance companies say a high-risk driver has a higher chance of claiming the insurance, so the premiums are higher for high-risk drivers to cover the cost.
Limited Coverage Options
Insurance companies may offer limited coverage. This implies that specific coverage, such as collision coverage, may be challenging or have higher deductibles or restrictions.
SR-22 Form Requirement
A driver may need to fill out an SR-22 certificate ordered by the state or court, which certifies the financial stability of an individual to prove that the person has car insurance that meets the minimum coverage required by law. An SR-22 form is generally required after a significant conviction, such as DUI, resulting in higher car insurance rates.
How to Find Affordable Auto Insurance for High-Risk Drivers
Though car insurance for high-risk drivers is more expensive than standard insurance, there are some ways to find affordable insurance. Here are a few steps to find affordable car insurance for high-risk drivers:
- Change your coverage: If your premiums are too expensive, try to decrease the coverage limit or remove some coverage to reduce the premium cost.
- Compare rates: Don’t settle for the first insurance quote you get. Get a free insurance quote online and compare rates to select the one that is best for you.
- Prove you are a safe driver: Improve your credit score, take defensive driving classes, and set your premiums to an autopay so you don’t miss any payments.
What Is the Best Car Insurance for High-Risk Drivers?
Some companies specialize in car insurance for high-risk drivers. Here is a list of companies that offer affordable auto insurance for high-risk drivers.
GEICO provides the most affordable auto insurance for high-risk drivers, with rates that are 36% cheaper than others. GEICO offers cheap insurance rates for drivers with speeding tickets, lapses in coverage, and DUIs. Apart from these, State Farm, The General, and Allstate provide affordable high-risk insurance. Naturally, GEICO is also a top choice for the best car insurance for veterans.
Benefits of Auto Insurance for High-Risk Drivers
Despite high premiums and limited coverage, there are certain benefits of having auto insurance for high-risk drivers. Some of them include:
- Financial protection: Car accidents result in financial liabilities like vehicle repair, medical expenses, property damage, and legal fee. Insurance agencies pay these expenses up to the policy’s coverage. Without proper insurance coverage, drivers will have to pay for the expenses out of their pocket, which could damage financial stability.
- Assistance in legal matters: In case of a legal matter, insurance agencies can help you to negotiate settlements in your interest. Insurance companies often have the resources to handle these legal matters.
- Potential lower rates in the future: If you prove to be a low-risk driver by maintaining a clean record, you can remove these tags of high-risk drivers, which may avail you to get lower rates or more affordable coverages in the future.
Conclusion
High-risk drivers have violated traffic rules or failed to pay their premiums on time. For this kind of individual, getting a quote from an insurance company is difficult, or they get very high rates with limited coverage. But some companies provide insurance for these individuals at cheap and affordable rates. Compare rates of different firms and choose one that suits your situation.
Once you get a quote from these firms, maintain a clean record and regular payments, and you can remove these tags of high-risk drivers and get better coverage with affordable rates. Overall, insurance comes with a sense of security and peace of mind in case of an accident, that the firm will settle the coverage, and that you will not face any financial burden.
