Best High-Risk Auto Insurance Companies

Questions & Answers

What Is High-Risk Auto Insurance?

High-risk auto insurance refers to any policy an insurance company perceives as having the potential to carry higher-than-average payouts due to claims. Insurance companies base premiums on how likely they think it is they will have to pay claims, and in doing so, how much they expect to pay out. 

One of the tools for determining car insurance rates is risk classification factors, such as driving history. You might be considered a high-risk driver if you fit any of the below criteria:

• New drivers and, for some insurers, young drivers
• Those without prior insurance
• People who have had one or more car accidents 
• Drivers who have been convicted of driving under the influence (DUI) or driving while intoxicated (DWI)
• Drivers with multiple traffic violations
• Someone who has been required by a state to file an SR-22
• People who have a below-average credit history
• People with modified or high-value cars

How Do I Get High-Risk Auto Insurance?

The best way to get high-risk car insurance is to shop around for quotes with a few different insurance companies before you make a decision. Once you have quotes, be sure to speak to insurance professionals about your situation.

How Can I Lower the Cost of My High-Risk Auto Insurance?

You can take a variety of approaches to lower the cost of your car insurance depending upon your circumstances.

• Your car’s value: Consider installing aftermarket anti-theft devices. Many insurers offer discounts for these devices. But be sure to ask your insurance company which one yields the greatest discounts.
• Buying a new car: Be sure to check the cost of the model’s car insurance before you purchase it. Car insurance premiums depend upon the car’s risk profile. Cars with more expensive parts, higher engine capacity, or are at risk for theft, especially in your zip code, will add to your insurance cost. Cars with safety features may lower the cost of your insurance.
• Multiple accidents: Shop around for rates with different insurers every renewal term. Some insurers use the last five years of driving history to determine the rate; others use the last three years. And not all insurers penalize at-fault accidents the same way.
• Insurer discounts: You can lower your cost by taking defensive driving courses or enrolling in a safe driver program that tracks data about your driving habits. But check with your provider to see what your options are.
• Low credit score: Take measures to get your credit score back on track. You don't need to pay off all your credit cards to improve your credit score. Paying your bill before it's past due or lowering your average card balance can help. If your credit score is low due to a special circumstance, like a divorce, medical crisis, temporary unemployment, or death in the family, let your insurance company know. Some make exceptions, and this could save you some money.
• Senior drivers: Some companies consider drivers over age 65 higher risk. Defensive driving courses and seeking out insurers that have better rates or group plans for seniors could help save you some cash.
• Membership associations and your employer: Sometimes, membership plans will be more lenient because you are affiliated with a group.

What If I Can’t Find Insurance?

If you try to get quotes and are unable to find insurance because of your high-risk classification, ask insurance companies that deny coverage why they are doing so. This will help you learn about the best way to find coverage elsewhere. 

If it is due to past claims, you can ask for a letter of claims experience, so you will have all the details you need to get quotes elsewhere. You can also contact your state insurance commissioner’s office to help you find insurance. States have systems to guarantee that auto insurance is available to those who cannot obtain it in the private market. As part of this, you could be assigned by your state to an “assigned risk plan” at a private insurer, rather than choosing your insurer, or you could try a government-run insurance program.

How We Chose the Best High-Risk Auto Insurance Companies

To select the best high-risk car insurance companies, we reviewed which insurers are able to offer coverage in each high-risk circumstance, including:

• Insuring high-risk drivers or specialty cars
• Giving better rates for poor to bad credit
• Offering an SR-22

Because financial stability is an important aspect of an insurance company’s being able to meet its financial obligations, we checked financial strength rankings for all the insurers, making sure they ranged from Excellent to Superior, as ranked by AM Best. 

We reviewed the car insurance prices on the companies’ websites, through online quotes, and in independent auto insurance rate studies to identify the top options in the high-risk car insurance categories. We also looked at customer complaints for specialty insurers and the top car insurers in the U.S. by region and nationally as filed with the NAIC, as well as standings in four different car insurance studies by J.D. Power, which ranked overall customer satisfaction, claims satisfaction insurance shopping experience, and digital customer experience. 

Although our regular car insurance company reviews focus on identifying companies with a low complaints ratio through state regulators in the NAIC databases, we found that most specialized car insurers in the high-risk market had average to extremely high levels of complaints filed in the past three years; therefore, we looked for the companies with the best track records in the category.