Cheap Car Insurance for High-Risk Drivers
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High-risk drivers typically pay more for auto insurance. You might be high-risk due to a history of traffic violations and accidents or even because you lack experience behind the wheel. Either way, insurers believe you’re more likely to file a claim, so they increase your premium accordingly. This can make it difficult to secure the appropriate level of coverage you need.
Fortunately, there are some affordable insurers and we’ve compiled a few for you to review.
- Concord Group Insurance offers inexpensive car insurance for several categories of high-risk drivers. American National Insurance Company and IMT Insurance also provide competitive rates.
- Insurance companies consider you a high-risk driver for various reasons, including a history of at-fault accidents, a low credit score, previous traffic violations, and even your age.
- You might want to consider non-standard insurers that specialize in providing insurance to high-risk drivers.
Cheap Auto Insurance Companies for High-Risk Drivers
Many companies specialize in high-risk car insurance policies. These insurers provide coverage for drivers with points on their licenses, who have had accidents in the past, and new drivers, such as teens or young adults. The best way to find the company that offers the lowest rates is to compare quotes from multiple insurers, but looking at these options listed below is a good start.
Drivers With At-Fault Accidents
- Concord Group Insurance – $994/yr
- American National Insurance Company – $1,145/yr
- Patriot Insurance – $1,238/yr
Having an at-fault accident on your record is a major red flag to auto insurers, so you’ll likely see a sizable rate increase.
Concord Group Insurance, American National Insurance Company, and Patriot insurance offer some of the most affordable premiums. Besides the standard insurance coverage. Concord Group also offers add-ons such as 24/7 roadside assistance, new car replacement, or accident forgiveness. Rated A+ by AM Best, Concord is available to drivers in Maine, Massachusetts, New Hampshire, and Vermont.
Keep in mind that these rates may vary depending on several factors, such as your location, vehicle type, driving history, and desired coverage. Therefore, comparing these rates with other insurance providers is recommended to find the best plan that fits your needs and budget.
Drivers With a Speeding Ticket
- Concord Group Insurance – $770/yr
- American National Insurance Company – $1,011/yr
- IMT Insurance – $1070/yr
Typically one speeding ticket won’t classify you as a high-risk driver, but if you receive them regularly, your insurance premiums may increase significantly.
Concord Group Insurance is one of the cheapest options for drivers with a speeding ticket. They provide dependable coverage at an affordable price, with rates averaging just $770 per year for drivers with a ticket on their record.
American National Insurance Company and IMT Insurance are two other companies known for their low car insurance rates for drivers with tickets. American National is available in all 50 states and Puerto Rico. Drivers looking for additional endorsements like gap insurance and added coverage insurance (ACE) will enjoy these options from American National. Drivers can even qualify to get cash back for good driving.
In addition, these companies offer yearly plans beginning at around $1,000, making them excellent choices for anyone looking to save money on car insurance.
Drivers With a DUI
- Concord Group Insurance – $1,146/yr
- American National Insurance Company – $1,251/yr
- IMT Insurance – $1,631/yr
A DUI conviction is one of the most serious driving offenses and can stay on your record for up to ten years, though in some states, it can be even longer or permanent. Because car insurance companies consider DUI drivers among the riskiest to insure, the rates reflect this.
DUI drivers have the potential to cause significant property damage, bodily harm, and even death. Because your insurance company may be liable for those expenses, they must act accordingly.
If you have a DUI, your insurance company may need to file an SR-22 form to confirm that you have minimum-requirement insurance in your state. Your state may require you file that form for multiple years; during this time, you can expect to pay higher premiums
Drivers with Concord Group Insurance that have a DUI pay substantially more than those with a clean record. However, they offer the cheapest average rate for high-risk drivers with a DUI, with American National Insurance Company and IMT Insurance also offering competitive rates.
Headquartered in Des Moines, IMT insurance is offered in six states: Iowa, Illinois, Minnesota, Nebraska, South Dakota, and Wisconsin. IMT is known for offering coverages for which other companies may charge extra, such as pet injury, glass repair, or identity recovery.
For Young Drivers
- Concord Group Insurance – $1,860/yr
- American National Insurance Company – $2,368/yr
- IMT Insurance – $2,423/yr
Most insurers consider drivers aged 18-25 high-risk, so they usually pay more for insurance. You can’t change your age, but insurance companies use it to determine your risk factor.
Young drivers, especially teen drivers, tend to pay higher premiums because they lack driving experience. We found that adding a teen driver to a car insurance policy can result in a 111% increase in premiums. When parents buy a car for their teen and add them to their policy, premiums can skyrocket by 156%.
As a result, young drivers pay some of the highest car insurance premiums. Still, we discovered that Concord Group Insurance, American National Insurance Company, and IMT Insurance have some of the most affordable car insurance for 18-year-olds on their policy. However, age is not a factor in all states; in Massachusetts and Hawaii, drivers’ car insurance rates are not affected by their age.
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Cheapest States to Get Insurance for High-Risk Drivers
- Hawaii – $1,486/yr
- Iowa – $1,558/yr
- Idaho – $1,594/yr
- Alaska – $1,604/yr
- Maine – $1,684/yr
- Vermont – $1,717/yr
- Ohio – $1,735/yr
- Wyoming – $1,815/yr
- Indiana – $1,868/yr
- North Dakota – $1,870/yr
In addition to comparing rates from different companies, another factor to consider is where you live.
The cost of car insurance varies from state to state. While these rates vary by insurance company and driver, some states have higher (or lower) insurance premiums due to unique minimum coverage laws and other factors.
As a result, insurance companies must charge higher rates in states with more legal requirements in exchange for added coverage and protection. For example, if a state requires less coverage for collision or injury, it will lower the state’s average monthly premium for all drivers.
Some states are much cheaper than others regarding auto insurance for high-risk drivers. While states like Iowa, Idaho, and Alaska offer relatively low auto insurance premiums for high-risk drivers, Louisiana, Michigan, and New York tend to be more expensive.
What is a High-Risk Driver?
High-risk drivers have a greater risk of filing an insurance claim than the average driver. Insurance companies consider several factors before classifying a driver as high-risk.
Generally speaking, being a high-risk driver means your driving record or other behaviors have placed you in a category where you pay a high insurance premium.
While every insurance company has its criteria, here are some common reasons why drivers may receive the high-risk driver label:
Driving Factors That Make You High Risk
- History of Traffic Violations: If you have a history of traffic violations, such as speeding tickets or DUIs, insurers will classify you as a high-risk driver. While speeding tickets are typically minor infractions, they can indicate to insurance companies that you aren’t driving safely and are more likely to be involved in an accident. Other traffic violations, such as failing to use a turn signal or running a red light or stop sign, can indicate that you aren’t practicing safe driving habits.
- Multiple Accidents or Claims: Drivers with numerous accidents or claims on their record are considered high-risk drivers. Your insurance company could be responsible for vehicle repair and replacement costs for you and the other driver, medical expenses for everyone involved, property damage, and even funeral costs if the accident results in death, depending on your coverage. These costs can amount to hundreds of thousands of dollars per accident. If you were at fault in an accident, expect your premiums to increase for at least three years.
- Suspended License: Getting a suspended license can lead to higher insurance premiums. Individuals with suspended privileges may be more likely to be involved in accidents or traffic violations. Insurance companies might choose to charge higher rates to compensate for increased risk. Some insurance companies will even refuse to insure individuals with suspended licenses.
Non-Driving Factors That Make You High Risk
- Poor Credit Score: Many insurance companies now use credit scores to calculate premiums. If you have a low credit score, you may be classified as a high-risk driver and pay more for insurance.
- Location: If you live in a zip code with high car theft or vandalism rates, you may be considered a high-risk driver and charged more for insurance. The area in which you live and commute can also influence whether or not an insurer considers you a high-risk driver. Insurance rates are typically higher for drivers in densely populated areas like cities. Drivers with longer commutes also pay more because they are more likely to be involved in an accident. On the other hand, your premiums may decrease if you relocate or start working in a different location with a shorter commute.
- Age: Most insurers consider drivers aged 18-25 high-risk drivers, so they usually pay more for insurance. However, as drivers approach retirement age, their rates rise again. Insurance companies believe that older drivers are more likely to be involved in a car accident.
- Driving a High-Value Vehicle: If you drive a more expensive car, you may be considered a high-risk driver and pay a higher premium. Thieves seek some cars more often than others, so they steal them more frequently. Others are more likely to be involved in accidents that cause serious bodily harm and property damage. On the other hand, some vehicles are safer to drive and can help you save money. Insurance companies gather all this information to determine whether your car increases the likelihood of a claim.
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What to do if You Can’t Find Coverage as a High-Risk Driver
If you’re having trouble finding an insurance company that will cover you as a high-risk driver, don’t despair. You can look for insurance companies that specialize in high-risk drivers.
Consider non-standard auto insurance companies, which usually offer more flexible terms than traditional insurers. Non-standard insurers typically offer high-risk drivers substandard policies with higher premiums and deductibles. Still, they may be the only option if you cannot find coverage in the standard market. Or, consider joining a professional association or club that provides insurance services. They might offer more flexibility in your insurance coverage.
Finally, consider getting a named driver policy. The policy lists someone else as the main driver, but you can drive the car occasionally. It’ll only cover the people listed as drivers on the policy so the owner would have to be listed in addition to the other person listed as the main driver. Otherwise, claims that occur while the owner of the policy is driving the car wouldn’t be covered. This strategy can help reduce your rates since you are no longer the primary driver.
How to Save Money on High-Risk Car Insurance
There are a few things you can do to save money on car insurance as a high-risk driver:
- Shop Around: Comparing quotes is one of the easiest ways to save money on car insurance. Shop around and compare different companies to find the best rate for your insurance coverage.
- Take a Defensive Driving Course: Taking a defensive driving course can help to reduce your rates because it shows you’re a safe and responsible driver. Check with your insurer first to ensure the course you intend to take is eligible for the discount.
- Increase Your Deductible: Increasing your deductible can help you save money on your monthly premium. However, ensure you have enough cash to cover your deductible in case of an accident.
- Bundle Your Policies: If you have multiple vehicles or need other types of insurance, such as renter’s insurance, consider bundling your policies with one company. Doing this can help you get discounts on all your policies.
- Pay Off Debts: Paying off debts can help improve your credit score, which can help you get lower rates.
- Ask for Discounts: Many insurance companies offer discounts for good driving records, low mileage, and defensive driving courses. Ask your insurance agent about discounts you may be eligible for to maximize savings.
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FAQs About Cheap Car Insurance for High-Risk Drivers
Who has the cheapest car insurance for high-risk drivers?
Concord Group Insurance has some of the cheapest quotes for different categories of high-risk drivers. However, the most affordable car insurance for high-risk drivers depends on various factors such as location, driving history, type of vehicle, coverage, and more. Therefore, it’s best to get quotes from multiple companies and compare them to find the best insurance coverage.
What is the best high-risk insurance company?
Because every driver has different priorities, it’s difficult to single out one car insurance company as the best for all high-risk drivers. For example, you might want excellent customer service or optional coverage like gap insurance. To help you narrow down the list of car insurance companies, consider what factors are most important to you.
Who do auto insurance companies view as high-risk drivers?
A high-risk driver has a bad driving record that can include a history of accidents, DUI convictions, or other significant citations, such as speeding tickets. In addition, a poor driving record, young age, or a lack of continuous experience behind the wheel are also high-risk indicators.
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