Facing the label of a “high risk” driver can feel like a financial and bureaucratic roadblock, often accompanied by steep insurance premiums and limited options. This designation isn’t a permanent mark, but it is a signal to insurers that your driving history or profile suggests a greater likelihood of filing a claim. Whether due to a recent at-fault accident, a series of traffic tickets, a lapse in coverage, or even a young age, navigating the high risk insurance market requires a specific strategy. The goal isn’t just to get covered, it’s to understand why you’re in this category, find the most affordable path forward, and take actionable steps to lower your risk rating and your costs over time.
What Makes a Driver High Risk?
Insurance companies use complex algorithms and vast amounts of data to assess risk. Their primary objective is to predict the chance that a driver will cost them money through claims. Several key factors can trigger a high risk classification. A poor driving record is the most common culprit. This includes major violations like DUIs or reckless driving, but also an accumulation of minor moving violations such as speeding tickets. Multiple at-fault accidents within a short period are a major red flag for insurers, as they indicate a pattern of risk.
Beyond your driving history, personal and financial factors come into play. Young drivers, especially teenagers, are statistically more likely to be involved in accidents, leading to higher premiums regardless of their individual record. Conversely, older drivers may see rates increase if their age is associated with declining reaction times or vision. A significant gap in your auto insurance coverage, often more than 30 days, signals to companies that you were driving uninsured, which they view as a high risk behavior. Your credit-based insurance score, used in most states, can also impact your rating, with lower scores often correlating with higher premiums. Finally, the type of vehicle you drive matters. High-performance sports cars or vehicles frequently involved in thefts can elevate your risk profile.
The Cost of High Risk Insurance and State Programs
High risk auto insurance is invariably more expensive than standard coverage. Drivers in this category can expect to pay two to three times the average premium, sometimes even more. This surcharge reflects the insurer’s calculated risk of having to pay out for a claim. The financial impact makes it crucial to shop strategically and not simply accept the first quote you receive. Comparing offers from multiple companies specializing in non-standard insurance is the best way to find a manageable rate.
For drivers who cannot secure coverage in the voluntary market, most states have a mechanism of last resort: the assigned risk plan or auto insurance pool. These are state-mandated programs that require all licensed insurance companies to share the burden of covering high risk drivers. While this guarantees you can get the legally required liability insurance, it is typically the most expensive option available and offers only basic coverage. It is designed as a safety net, not a competitive marketplace. For a broader look at how insurers calculate your personal rate, including risk factors, our guide on understanding your auto insurance cost provides a detailed breakdown.
How to Find Affordable High Risk Coverage
Finding the right policy requires a proactive and informed approach. Start by obtaining quotes from multiple providers. Don’t just check the large, well-known companies. Seek out insurers that specialize in the non-standard market, as their business model is built around serving higher risk drivers, and they may offer more competitive rates. When requesting quotes, be completely honest about your driving record and history. Any discrepancies discovered later can lead to denied claims or policy cancellation.
Consider adjusting your coverage levels wisely. While you must meet your state’s minimum liability requirements, you might opt for higher deductibles on collision and comprehensive coverage to lower your premium. This means you’ll pay more out-of-pocket if you have a claim, but it reduces your monthly burden. Ask about every possible discount. Even as a high risk driver, you may qualify for discounts for things like paying your premium in full, taking a defensive driving course, bundling with renters insurance, or having safety features in your car.
Here is a strategic checklist for shopping for high risk auto insurance:
- Gather your personal information and driving history details before you start.
- Get quotes from at least 5-7 companies, including non-standard specialists.
- Ask specifically about high risk driver discounts and state-approved defensive driving courses.
- Compare not just price, but also the company’s customer service reputation and financial strength.
- Consider a telematics program (usage-based insurance) if your driving habits have improved.
For a curated list of providers that may offer solutions, reviewing top rated auto insurance companies can be a helpful starting point, as many have divisions that handle non-standard policies.
Lowering Your Risk and Improving Your Rates
The high risk label is not necessarily permanent. Insurance companies generally look back 3 to 5 years on your driving record, though serious offenses like a DUI can impact you for much longer. The single most powerful thing you can do is to maintain a clean driving record from this day forward. Avoid any traffic violations and drive defensively to prevent accidents. Time is your ally, as past infractions lose their impact as they age.
Enroll in and complete a state-approved defensive driving course. Many states mandate that insurers provide a discount for completing such a course, and it also demonstrates proactive improvement to insurance companies. If your high risk status is due to a lapse in coverage, secure a policy immediately and maintain it continuously. If financial hardship is an issue, look for a policy with the minimum required coverage to avoid another gap. Improving your credit score can also help lower your premiums in states where it’s a permitted rating factor. Pay bills on time, reduce debt, and check your credit report for errors.
Finally, as your record improves, re-shop your insurance every 6 to 12 months. You may find that after a couple of clean years, you qualify for much better rates with a different company. For drivers in specific regions, like Colorado, exploring localized resources such as our article on auto insurance in Colorado can reveal state-specific programs or regulations that might assist you.
Frequently Asked Questions
How long will I be considered a high risk driver?
Most moving violations and at-fault accidents affect your insurance for 3 to 5 years. Major violations like a DUI can affect your rates and classification for up to 10 years or more, depending on state law and company policy.
Can I be denied auto insurance for being high risk?
In the voluntary market, yes, companies can refuse to sell you a policy. However, you cannot be denied the state-mandated minimum liability coverage through your state’s assigned risk plan, which ensures all licensed drivers can meet financial responsibility laws.
Will taking a defensive driving course remove points from my record?
This varies by state. In some states, completing a course can remove points from your license, which can help with your driving record. For insurance purposes, the course often qualifies you for a discount, demonstrating to the insurer that you are working to become a safer driver.
What’s the difference between non-standard and standard insurance?
Standard auto insurance is offered to drivers with average to good driving records through a company’s regular underwriting channels. Non-standard insurance is specifically designed for drivers who do not meet the criteria for standard policies due to high risk factors, and it is typically more expensive.
Does my credit score really affect my car insurance rate?
In most states, yes. Insurers use a credit-based insurance score, which is different from a standard credit score, as a factor in determining risk. Statistical data suggests a correlation between credit history and the likelihood of filing a claim. However, a few states have banned this practice.
Securing high risk auto insurance is a challenge, but it is a manageable one with the right information and approach. By understanding the factors that led to your classification, shopping diligently among specialty providers, and committing to safer driving habits, you can obtain the necessary coverage and begin the journey toward more affordable premiums. Remember, the situation is temporary, and consistent improvement is the most direct route out of the high risk pool. For further insights and detailed comparisons on navigating this market, Read full article for a deeper dive into your options.
