What is High-Risk Auto Insurance?

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.