High-risk auto insurance is auto insurance coverage for drivers providers believe have a greater chance of filing a claim. Insurance companies use a variety of factors to establish a driver’s risk level. These factors include how old/young you are and how many traffic violations you have. Since high-risk drivers pose a greater risk for insurers, they will have higher insurance premiums than others. This is because insurance providers gamble a lot when they cover a high-risk driver, and they need to offset the potential cost of doing so.
Who is Considered a High-Risk Driver?
Your driving record, your years of experience behind the wheel, and your claims history are some key factors that insurance companies use to establish your risk level. You may be considered a high-risk driver if one or more of the following applies to you:
- Young or senior driver
- Poor credit score
- Multiple traffic violations on a driving record
- Has caused an accident
- Evident lapses in insurance coverage
- Has been convicted of reckless driving
- Has a DUI/DWI conviction
Cost of High-Risk Auto Insurance
High-risk auto insurance does not come cheap. It is possible to find affordable high-risk car insurance, but it is not going to be as low as the premiums good drivers have. Insurance premiums for high-risk drivers come out to be, on average, around $2,000 annually. But a lot depends on why you are being considered high-risk. If you have a DUI conviction, for example, expect to pay $3,000 or more annually for coverage. As previously mentioned, this increase in rates is meant to offset the cost of covering high-risk drivers. It’s unfortunate, but insurers can be putting a lot on the line by providing you with coverage.
SR22 Insurance For High-Risk Drivers
If you are a high-risk driver, there is a good chance that you are required to have SR22 insurance. SR22 insurance is not a type of insurance but a document that proves to the state you carry at least the minimum amount of insurance mandatory for all drivers. It is submitted to the state by your insurance company and usually comes with a filing fee. Not all insurance providers offer SR22 insurance, so you may have to do some shopping around to fulfil your requirements.
Tips For Saving on High-Risk Auto Insurance
Being classified as a high-risk driver isn’t the end of the world. There are ways to lower your premiums and, eventually, reduce your risk classification. Listed below are some ways you can help your driving status and improve your record for your insurer:
- Practice safe driving – It’s essential to reestablish trust if you are considered a high-risk driver. You can do this by practicing safe driving habits and staying claims-free. This means obeying all traffic signs, eliminating driving distractions (cell phones, car radios, etc.), and avoiding reckless behavior like braking too quickly. You are less likely to get into an accident if you practice safe driving, which will please your insurance provider.
- Take a defensive driving class – Some insurance companies allow you to take a defensive driving course to lower your premiums or lower your risk classification. Check with your state to see what kind of driving classes are offered. Your insurance provider can also help you find an approved defensive driving course.
Work to improve your credit score – People with poor credit scores are thought to make more insurance claims which force insurers to raise premiums. Improving your credit score can help you immensely with your insurance premiums and risk level. You can do this by staying on top of your bills and paying off any loans you have. Consulting with a financial advisor can also be beneficial for your credit journey. It may take some time to get your credit score to the place you need it to be, but it will be worth it in the long run.
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