The Cheapest Car Insurance for High-Risk Drivers in the U.S
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|Top 10 Best Car Insurance Companies in the U.S with the Cheapest Quotes|
|Best Cheap Car Insurance for High-Risk Drivers in the US|
High-risk car insurance is a type of auto insurance that covers situations in which the insurer perceives there is a greater-than-average likelihood of a claim, or when the perceived amount that might be paid out in claims is higher than usual.
Multiple accidents, traffic tickets, or DUI convictions are common causes for a high-risk insurance premium (DUIs). When it comes to auto insurance, you may be labeled a high-risk customer for a variety of reasons, including but not limited to: your payment history; your age; or the value, purpose, or characteristics of the vehicle itself. If you plan to use your car for racing or if you have made modifications to it, you can expect to pay a higher premium.
If you've been turned down for auto insurance or feel you need high-risk coverage for another reason, give your insurer a call to discuss your circumstances. Most high-risk insurers will cover these situations, but some will do so more effectively than others.
What is a high-risk driver?
It's not necessarily the case that a "high-risk driver" has a poor driving history. There is a sizable population of motorists who fall into the high-risk category and have difficulty obtaining insurance from mainstream providers.
A large number of insurers focus on high-risk drivers, but they do not all use the same definition of what constitutes a high-risk driver. Examples of people who are likely to be considered high-risk motorists include:
♦ Have tickets, at-fault accidents, or DUI convictions.
♦ Have allowed their coverage to lapse.
♦ Are newly licensed.
♦ Have poor credit.
♦ Own an exotic or high-powered vehicle.
Drivers who have been convicted of moving violations often find coverage with high-risk auto insurance providers who accept SR-22 and FR-44 certificates as proof of sufficient insurance coverage. Insurers will submit the paperwork to your state's DMV on your behalf if you need it.
What Makes a High-Risk Driver
Car insurance providers must classify some drivers as high-risk customers. Other times, they are to blame for their high-risk status. Nevertheless, there are instances where potentially safe drivers are labeled as high-risk. Following drivers are categorized as high-risk drivers:
Teenage drivers: New drivers are relatively inexperienced since they must be certified and licensed by the age of 16. Since young drivers tend to have higher accident rates than any other group of drivers, insurance companies will charge them higher premiums because they don't have much of a driving record to go on. Teenage drivers frequently begin on their parents' policy because they are the most expensive to insure. New drivers are also subject to this.
Senior motorists When a driver is between the ages of 26 and 65, car insurance rates typically average out. Your car insurance rates will increase as you get older and react to situations more slowly. Despite not being high-risk in the conventional sense, older drivers still have to pay a little bit more than average.
When it comes to auto insurance, the one thing to avoid is having extended stretches without coverage in between policy renewals. As a result, "coverage lapses" occur. Car insurance companies will take note of this. In many states, it's against the law to drive without auto insurance. Doing so makes it simple to run afoul of the law and increases the cost of insurance.
Poor credit score - Car insurance companies consider prospective policyholders' credit scores, much like they do with lapsed coverage. Making on-time monthly payments is essential for maintaining your auto insurance policy, and what better indicator of financial responsibility than a credit score based on the same criteria? Although not all states require it, having a strong credit rating is necessary, for instance, to be able to rent an apartment.
Traffic infractions - It goes without saying that car insurance companies will classify drivers with a string of infractions on their driving record as high-risk. They search specifically for traffic infractions that occur while you are driving. Accidents cause damage, which leads to claims, which leads to an increase in insurance costs.
DUIs are the most serious infraction that can have a significant impact on your auto insurance rates. For drivers with a DUI, insurance rates are at least doubled in addition to the legal repercussions. Additionally, they might need to have SR-22 insurance with the insurance provider and DMV of their state. They claim that these are the drivers who pose the greatest risk, and the SR-22 supports their claim.
Road traffic accidents If you consistently engage in behaviors like hit-and-runs, multiple collisions, or road rage, you may be labeled a high-risk driver. This is why a number of auto insurance providers offer discounts for safe driving to encourage better driving practices.
How much does high-risk car insurance cost?
|high-risk car insurance cost|
High-risk drivers are likely to pay more than $565 per year, the average national cost for minimum coverage car insurance according to NerdWallet’s rate analysis. But auto insurance rates at every risk level vary widely depending on your age, driving history, location, and other factors, like the type of coverage you buy.
For instance, “full coverage” auto insurance can cost more than double what you’d pay for minimum coverage. Full coverage refers to a combination of different car insurance coverages, including higher liability limits, collision, and comprehensive insurance.
Below are the average annual rates for minimum coverage for drivers with bad credit, an at-fault accident or a DUI, as compared to drivers with good credit and clean driving history.
The Best Companies for High-Risk Drivers Based on Driving Record
You may be categorized as a high-risk driver by an insurance company for a number of different reasons. If you have violations on your driving record, that is one of the most frequent causes. Insurance companies believe that you are a higher risk if you have a history of tickets, accidents for which you were at fault, DUIs, or other infractions. Your rates will increase in direct proportion to the severity of the violation or the number of violations you commit.
MoneyGeek determined that the top two insurers for high-risk drivers are based on affordability of rates for high-risk drivers and the caliber of customer service:
State Farm is rated as the best insurer for high-risk drivers that is widely available, and it also receives high marks for affordability, client satisfaction, and financial stability.
USAA receives the highest overall rating for high-risk drivers, but only military families can use it. It has received high ratings for customer satisfaction and financial stability and offers affordable premiums.
It might take more time and research to find the best auto insurance for high-risk drivers. If cost is your only consideration, MoneyGeek also lists the least expensive insurance providers for high-risk drivers.
The Cheapest Companies for High-Risk Drivers Based on Driving Record
If affordability is more important to you than customer service and supplemental services, you might be curious to know which auto insurance companies have the most affordable policies. Currently, drivers across the country pay an average of $1,379 for insurance, compared to $2,240 for drivers with violations on their records.
USAA also tops this list for the least expensive high-risk driver auto insurance, with an average premium of $1,389 per year. At $1,769, State Farm is the runner-up.
These numbers are based on typical rates for three types of violations: after receiving a ticket, after being at fault in an accident, or after a DUI.
The Cheapest Companies for High-Risk Drivers by State
It's important to keep in mind that while the previous section highlighted national averages for high-risk driver insurance, these numbers can change depending on where you live. In various states, some businesses modify their prices. We highlight the least expensive company in each state to help you find the best choice for your requirements.
State Farm offers the best value in 27 states, excluding USAA. The least expensive and second most popular choice is a regional insurer called American Family Insurance, which is available in six states. However, in at least one state, 12 companies were the most affordable choice, so high-risk drivers can profit from comparison shopping.
Due to its eligibility requirements, USAA was not included in this analysis; however, if you are qualified, we found that USAA offers the most affordable car insurance for drivers in 29 states.
Top 10 The Best Companies for High-Risk Drivers in US
1. American Family Insurance
American Family Insurance doesn't have as wide a geographic footprint as some other major insurance companies, as it currently serves only 19 states. But high-risk drivers in states where policies are offered ought to think about American Family (they even offer policies through Costco). Following frequent traffic violations, the company's rates typically go up by a small margin. Customers who have their first at-fault accident can avoid significant rate increases thanks to the company's accident-forgiveness policy. You must satisfy the following requirements in order to be eligible for this coverage:
keep a five-year accident-free record.
A five-year American Family policy must have been held.
No serious infractions or violations
2. The General
The General positions itself as a provider of auto insurance to all people, including high-risk drivers. The General is a business that specializes in providing insurance for high-risk drivers. You must confirm that your state is one of the 46 that the company offers coverage in.
The General does not allow you to combine different insurance policies and receive discounts. The General does, however, offer a number of fantastic discounts, such as:
Good Learner: Students must show proof that they currently have at least a "B" average in order to be eligible.
Double Deductible: For the first 45 days of a policy, this discount doubles the deductible for comprehensive and collision coverage, lowering your premium.
Customers who pay their annual premium in full rather than in monthly installments.
Previous Insurance: For those who switch directly from another provider to The General.
3. State Farm
State Farm is one of the biggest insurance providers in the country. Despite not always being the most affordable option, high-risk drivers can anticipate only modest increases in their premiums after committing any of a variety of different traffic offenses. Additionally, the organization provides discounts that might mitigate the effects of a dismal driving history, such as:
Taking defensive driving lessons or driver training through the State Farm Drive Safe & SaveTM and Steer Clear® programs
discounts for vehicle safety
combining several policies
An SR-22 is a form of proof of insurance required by many states for drivers with certain driving records, such as a DUI, serious traffic violations, or a lack of insurance. However, not every insurance provider offers coverage for high-risk drivers, and some don't even provide SR-22 forms.
If you need to file an SR-22 with the Department of Motor Vehicles due to previous traffic violations, you can quickly and easily get approved for a Dairyland auto insurance plan through its website.
USAA is well-known as a budget-friendly auto insurance provider, and this is also true for high-risk motorists. To compare, USAA's auto insurance premium increases are more moderate than those of some of their rivals. However, not everyone is eligible for USAA membership and insurance. Customers can only buy a policy if they are in the military or a member of a military family. Accident forgiveness is something USAA offers, which can prevent a significant increase in premiums following an accident in which you were found to be at fault. If you're a high-risk driver, USAA offers additional discounts and savings opportunities, such as:
Registration for the telematics service SafePilot
A package of various insurance plans
Placing an Anti-Theft System in Place
6. Bristol West
Since 1973, Bristol West has been providing drivers with high-risk auto insurance. The company markets itself as a resource for motorists who may have difficulty obtaining insurance elsewhere due to factors like poor credit, a lack of credit, a lack of prior insurance, or even a DUI. Bristol West has an A rating from AM Best and is a wholly owned subsidiary of Farmers Insurance, the seventh-largest auto insurer in the United States (Excellent).
In the end, we decided that Bristol West was the best high-risk insurer because of the breadth of high-risk situations it can cover, the convenience of its website and online services, and the relative lack of complaints among such businesses.
How to Get Low-Cost Insurance for a High-Risk Driver
Some high-risk drivers may be accepted by mainstream insurance providers like Geico and Progressive, but niche providers like Safe Auto and The General focus on them. Any one of these providers may have the cheapest auto insurance rates available, depending on the specific risks involved.
Nonstandard insurance is offered by some insurance agencies and brokers in addition to the big names like Good2Go and Freeway Insurance. Brokers typically have an additional fee, the details of which they must make clear to their clients. If you decide to use one, make sure you know what other costs you may incur beyond your base auto insurance premium.
Although it typically takes multiple traffic violations or accidents to label you as "high-risk," many drivers experience rate increases after being found at fault for just one auto accident or a couple of traffic tickets, making it difficult for these drivers to maintain auto insurance. While other insurance companies may charge you more because you have traffic tickets or accidents on your record, GEICO still provides affordable coverage.
Offering many different kinds of discounts is one of GEICO's strong points. In fact, there are special rates available to you depending on your driving record and the security features installed in your vehicle. Furthermore, GEICO works with a wide variety of businesses and organizations to offer discounted rates to their respective groups' members.
The third largest auto insurance provider in the United States, Progressive, has a great online quoting tool that displays competitive rates from other providers and allows you to set your own price. To help you make an informed decision, the online quote will suggest what kind of coverage you can get for the amount you've entered. Since its founding in 1937, this insurer has grown to become one of the largest in the United States, earning an A+ (Superior) rating from AM Best for its financial stability.
Depending on where you look, customer satisfaction with Progressive's customer service is either below or close to average. The company's complaint trends with state regulators were below average in 2018 and 2019.
If you have a tracking device installed in your car, you may be eligible for a discount on your insurance through Progressive's innovative Snapshot safe driver program.
9. Direct Auto
It's true that having a low credit score can have an effect on your insurance rates and, in some cases, even your ability to obtain insurance altogether. While you work to raise your credit score, Direct Auto promises to be there for you with low-cost auto insurance.
Although Direct Auto does not have the same name recognition as competitors like GEICO or State Farm, the discounts they offer are still very attractive. It's true that drivers who are eligible for one of Direct Auto's dozen discounts can receive savings of 25% or more on their insurance premiums.
Direct Auto offers a multi-car discount of 25% for insuring two or more vehicles with them, and a military discount of 25% for all active service members. Discounts are available for many groups, including seniors, good drivers, policy switchers, homeowners, and others who choose Direct Auto.
Whether you're into motorsports, own a high-value vehicle, a collectible, a kit car, or a supercar, Hagerty can insure you for it. There are three insurance providers that back Hagerty's policies. The company has a stellar track record with the NAIC, with complaints trending well below average in 2018, 2019, and 2020, and it provides coverage in all 50 states.
Insuring a wide variety of specialty cars for motorsports that many other insurers will not, Hagerty is our top pick for modified vehicles and track use. As an added bonus, we appreciate the sense of camaraderie that the Hagerty Drivers Club fosters amongst its members.
Ways to Lower Your Auto Insurance Premiums
Unfortunately, you can't do anything about some of the risk factors that insurance companies consider. Some things, like having a flashy car, might be fine as they are. In general, consider the following strategies to avoid being classified as a high-risk insurance client and subsequently paying higher premiums:
Do what you can to raise your credit score. According to NerdWallet's rate analysis for 2021, drivers with poor credit and a clean driving record can pay almost as much for car insurance as a driver with a DUI.
Put safety first on the road. There are even companies that will give you a discount after you complete a driver safety course.
Go out and compare prices on insurance policies. Three and five years after a conviction for a traffic offense, respectively.
Don't risk driving without proper car insurance coverage. Even if they don't have a car, drivers with coverage gaps are considered high risk. Avoiding the "high-risk" driver classification with non-owner car insurance is possible.
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