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High-risk drivers or those with a high number of violations on their driving records often have trouble obtaining insurance at a reasonable price. When looking for car insurance for bad drivers, it’s helpful to understand what makes someone a high-risk driver and which companies offer insurance to those who qualify.
Best High-Risk Auto Insurance Companies
High-risk auto insurance is a coverage option for those who are deemed to present a higher risk of filing a claim or multiple claims that the insurance company will have to cover. When offering high-risk insurance, auto insurance companies must assess the likelihood that the driver will file a claim and charge for the policy accordingly.
Both The Balance and NerdWallet report that an insurance company will usually deem a driver as high risk when their history shows the potential for a higher number of claims than the average driver. Some examples of drivers that insurance companies may consider to be high risk include:
- Those with one or more car accidents
- Those with no prior auto insurance coverage
- New drivers
- Young drivers
- Those with below-average credit scores or history
- Those with multiple moving or traffic violations
- Those who have been convicted of DWI (driving while intoxicated) or DUI (driving under the influence)
- Those with high-value or modified vehicles
If you are considered a high-risk driver, you can shop around and request quotes from various insurance companies to determine which will offer the best coverage at the best price. After you obtain several quotes, make sure to contact a professional at each company to further discuss your situation and any violations or issues that may be present on your driving history. An agent can look at your history and provide an estimated timeline for how long you might be considered high-risk, as well as suggest options to reduce the cost of your insurance coverage.
Information presented by Quote Wizard indicates that some of the major car insurance companies that offer the lowest average prices for drivers with an at-fault accident include:
- American Family: $884 for six months of coverage
- State Farm: $810 for six months of coverage
- USAA: $767 for six months of coverage
The Zebra reports that drivers who have multiple speeding tickets on their records may want to consider the following companies, as they offer the lowest average rates following moving violations:
- GEICO: $785 for six months of coverage
- State Farm: $764 for six months of coverage
- USAA: $677 for six months of coverage
If you have been convicted of DUI, the following companies offer the cheapest average rates for your high-risk driving history:
- State Farm: $940 for six months of coverage
- Progressive: $919 for six months of coverage
- American Family: $823 for six months of coverage
If you’re having trouble securing auto insurance coverage due to your high-risk status, consider working with one of these insurance companies that cater to higher-risk drivers:
- Assurance America
- The General
- Bristol West
Best Cheap Car Insurance for Those with a Bad Driving Record
The most affordable car insurance for bad drivers depends on the types of violations they have committed and the accidents in which they have been involved. For example, Value Penguin reports that drivers with speeding tickets on their records pay an average of $2748 per year for coverage, while drivers who have been convicted of DUI pay $3390 per year, on average, for coverage. The averages mark a difference of $642 per year.
Progressive and GEICO are two insurance companies that often provide the lowest rates to high-risk drivers. Their quoted rates tend to be up to 40 percent less than the average cost of the same coverage, although the driving record and infractions impact the cost and potential savings.
On average, GEICO is the cheapest option for drivers who have speeding violations, racing violations, reckless and careless driving violations, and running a stop sign. The average cost is between $2188 and $2848 per year, marking a savings of up to 21 percent over the average cost of insurance from other providers for drivers with the same violation. For example, the average cost for a driver who has a racing violation on their record is $2758 per year, while GEICO would charge that driver an average of $2188, which is 21 percent lower.
Progressive offers the lowest average rates to drivers with DUI and at-fault accidents on their records. A driver with a DUI might pay an average of $2038 for a year of coverage from Progressive, while the average overall cost for that driver is $3390 per year. The auto insurance company also charges those with at-fault accidents up to 31 percent less.
Since the average cost with Progressive is substantially lower, most drivers with at-fault accidents on their records should at least obtain a quote from this company to compare. Progressive also offers cheaper rates to drivers who have been convicted of DUI, although for most other traffic violations, GEICO offers the lowest average rates.
When setting rates, insurance companies assess the level of risk they are taking on by providing insurance to a particular driver. They must consider any damages the driver might inflict on their own vehicle, as well as on other vehicles, drivers, and passengers, and determine the potential payout required.
The models used by insurance companies to set coverage rates often indicate that drivers with previous at-fault accidents and traffic violations are more likely to be involved in accidents and incur violations in the future. As a result, those drivers pay more in car insurance premiums because they are deemed to pose a higher risk to the company.
More severe incidents and violations will result in higher premium increases than minor traffic violations or crashes. For example, running a stop sign or speeding may cause your auto insurance rates to go up by an average of 14 percent, while a more serious violation, such as a DUI, could cause an increase by about 41 percent.
It is also helpful to note that your previous driving history will typically only impact your rates for about three to five years. Any violations that occurred more than three years ago will often not be reported to your insurance provider, which means they won’t impact your cost. The exception to that rule is DUI, which can impact your car insurance costs for up to five years.
If you’re going to be driving a car, it’s important to have car insurance. If your driving record has some blemishes, there are several insurance companies that can provide the insurance you need. Comparing offers from several companies can help you get the best price for your car insurance.
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