Non-Standard Auto Insurance for High-Risk Drivers

Police officer
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About one-fifth to one-third of drivers are considered high-risk drivers by insurance companies. But what does that really mean?

If you are a stereotypically risky driver—someone with lots of speeding tickets, reckless driving habits, and DUIs on-record, it’s probably no surprise that insurance companies are not leaping at the opportunity to insure you and accept you into their risk pool. But there are other, less obvious things that could make you a higher risk in the eyes of insurers:

  • Being too old or too young
  • Being single
  • Having poor credit
  • Driving a sports car
  • Living in a high-density city

If you’re a REALLY risky driver with a history of thinking you are above the law, you might be more than a high-risk driver: you might be a government-certified high-risk driver.

If you’ve been convicted of a drinking offense, obtained many moving violations in a short period of time, drove without a license or had your license was recently suspended or revoked, you might have received a court order for an SR-22, a Statement of Responsibility, which you’ll be required to keep on file with the state DMV once you find an insurer willing to take you on. Contrary to popular opinion (and the options listed on some insurance websites), an SR-22 is not a type of insurance—it is a form that proves to the government that you have insurance.

If you’ve had a serious conviction, you will definitely be paying for it at the insurance company.

Drunk driving can raise your premiums by as much as 75 percent, and even speeding tickets can raise your rate considerably.

Consider the Big Insurers

If you think that large and prestigious insurance companies would be reluctant to insure you, you’d be wrong. Sure, you’ll pay more than a low-risk driver, but a lot of large insurers have the resources and will to craft insurance policies that would work for you.

Geico, Nationwide, Farmers Insurance and all have subsidiaries that work specifically with high-risk drivers. You don’t even have to apply through the other company—rather, you’ll go through the same application process that everyone else does.

But Don’t Discount Non-Standard Insurers

Although the major players may seem like the easiest choice, they won’t always be the best fit for each person. There are dozens of small insurers designed just for high-risk drivers, also known as non-standard insurance carriers, and they are worth checking out.

If you really can’t find any insurance company that will insure you, maybe you should consider taking the bus or other forms of public transit. But as the last insurance resort, check out the state government insurance plans available in your area.

It Is More Important Than Ever to Shop Around

Just because you’re a high-risk driver doesn’t mean you should have to accept sky high premiums without batting an eye. As with any important financial decision, it’s really important to shop around and compare the options. While you are probably not overjoyed by being labeled high-risk, options abound that will have you safely insured and on the road in no time.

You will still be paying more than you would if you were not labeled as a high-risk driver, but shopping around is definitely still worth your while. Because you’re starting from a place of paying much more, it’s even more worth it for you to shop around than it would be for someone who is not high-risk.

And it’s not just premium prices you should be shopping around for. You should also try to find a flexible payment plan (if you need it) and as many customizations that would make your life easier as you can. You should also try to find companies that allow you to customize the coverage itself so that you’re only paying for what you really and truly need. However, if you have an SR-22, there may be specifically required minimums you must abide by.

Don’t forget to ask for discounts. Bundling your insurance, having a good driving record, and having a safe vehicle could all save you money each month.

Consider Paying a Higher Deductible

A willingness to pay a higher deductible signals to the insurance company that you have a vested financial interest in not causing them any expenses—because you’ll be on the hook for it also! Generally, if you’re willing to take on a higher deductible amount, you’ll have lower premiums each month.