Paying extra every month for high risk auto insurance is right there with getting genuine channels. (Okay, maybe not so bad, but still…) But don’t despair! There are several things you can do to improve the condition of your car insurance and get back on track.
We’ll walk you through the ins and outs of high-risk auto insurance—how much it costs, what puts a person at high risk, and most importantly, what you can do if they are.
Some drivers just cost more to guarantee. Like a teenager who just got their license. Or your 71 year old Uncle Eugene. Or your friend who hasn’t had car insurance in 7 years when using mass transit in Chicago. Or your relative Earl who has a background of 4 speeding tickets in the last 2 years. These kind of drivers are all considered high risk.
So, what exactly puts someone in the high-risk category? And how did you get off that list? Let’s dive in!
Well, high-risk auto insurance (also known in the industry as non-standard auto insurance) is the coverage you need to buy when an insurance provider decides that you are more at risk of an accident and makes an insurance claim compared to the average driver. Simple, right? This is a classification outside of standard auto insurance coverage.
Want to save money on car insurance? Download and install our list for easy tips!
There are many factors that an insurance provider as a driver would definitely consider a high risk. And there are also insurance providers who don’t cover high-risk drivers at all, which means having an insurance professional on your corner is especially important if you fall into this category.
So, what example does an insurance provider do to determine if a person is at high risk?
There are some high risk factors that are beyond your control—such as your age or if you haven’t owned a car in a long time (such as if you live in a big city). You can become a Resident of the Month with a pristine record and those points will definitely still count. But there are some points that you can control. (More on that in part 2.)
Here are some teams of individual insurance providers that are considered high risk:
Let’s appear better to everyone.
When you change 16 and get your driver’s license, you are immediately considered a greater risk compared to a skilled adult driver. But there are things young drivers can do to get lower premiums—like getting good quality at the institution, not getting a traffic ticket, and avoiding accidents. If you maintain a good driving record, your costs will slowly decrease until you are 25 years old.
If you’re the mother and father of a teenage driver, including them in your insurance is one way to save money on their insurance—unless they damage the family minivan and cause your costs to increase. But don’t think so.
Let’s face it: If you live in Manhattan or any other large city, just having a garage can cost you as long as rent in other cities, and you can take the train to get almost anywhere. If that’s the case, there really isn’t a factor in owning a car. And if you’ve never owned a car, why bother getting a permit? But if you’re moving to a suburban area, it’s time to start driving.
If you are an adult over the age of 25 and you recently obtained your license, your insurance provider will view you as a high-risk person.
We don’t like breaking it down for you, but just as you can be too young to be perceived as reducing risk, you can also be too old. While your insurance costs slowly decrease as you pass age 25, they start to increase again once you reach 65. Unfortunately, drivers 65 and older accounted for 6,907 traffic deaths in 2018. That was 19% of all traffic deaths that year. . That is one reason why drivers in this age range are considered high risk.
Maybe you used to have a car, but after that you moved to a big city and don’t need it anymore. Or you disappear to university and are earned by walking or cycling. There are many valid reasons you should not maintain your auto insurance. But because you need it again, you may find it costs you more than you remember because you’ve been unprotected for a long time. Don’t worry. If you have no accidents and keep yourself out of traffic court, your costs will eventually be reduced!
Appearances, we understand this is stupid, but we have to say it: If you end up without a FICO score, you may have a bigger cost. We understand. This is stupid. But if you’re debt free, don’t sign up for multiple credit cards just to get a FICO score. The FICO score says nothing about your financial resources other than the financial obligations you prefer. You end up paying bazillion dollars to save a few hundred dollars on auto insurance. Don’t switch from one dumb variation to another.
And unfortunately, if you really have bad credit, the insurance provider will argue against you and assume you have more risk to cover than someone with great credit.
Hello, we don’t make rules. We only inform like that.
Reduce! Speeding was an element in 26% of all traffic deaths in 2018. That is, 9,378 people died in car accidents because someone was going too fast. So it’s no surprise that getting a ticket to speed things up can impact how much you spend on insurance. And if you get too many tickets, the insurance provider will put you in a high-risk category. If you get too many tickets to speeding or any other moving offense (such as operating a traffic light) within a five year period, your insurance company will get the message that you are an accident waiting to happen. (Let’s face it: you might be an accident waiting to happen.) So they’ll raise your prices. For your own health and your insurance costs, cut back and beware out there!
Appearance, drinking and driving are bad and dangerous things to do. There’s no other way to say it. You can eliminate someone. You can remove it yourself. It is not effective. Get an assigned driver, call a taxi, or use a ride-sharing app to get home.
Along with all that, getting a DUI is the quickest way to be identified as a high-risk driver. And insurance providers can go back 3 to 5 years (and align with ten years in some specs) to look for DUI on your records. If you are found guilty of drunk driving, you must obtain an SR-22 certification from your insurance company which certifies that you meet the minimum monetary liability requirements for insurance coverage required by law. Your insurance company will need to apply for the SR-22 before you can return your driver’s license, and some specifications will require you to carry the SR-22 for several years. In Alaska, 5 years after the first DUI sentence and increasing with each offense after that. After the 4th sentence in Alaska, you must carry the SR-22 forever.
So, again, don’t drink and have!
Violations such as road madness, hit-and-run accidents and excessive speed will get you relegated to the high-risk category. So relax! Driving can be difficult, so do your best to relax during your trip. Maybe pay attention to The Ramsey Show and listen to Dave’s soothing voice yelling at the individual renting the car. (Okay, maybe that’s not exactly soothing, but paying attention to debt-free screams can put anyone in a great state of mind.)
In all seriousness, going your own way can cost you your roof system and cause you more stress when you take a break to work on your budget. Relax out there and get home safely.
How much you will spend on high-risk auto insurance varies from state to state. It also depends on your driving record, age, credit and all the other points we mentioned. But definitely anticipate paying a lot more—sometimes a lot more.
For the circumstances, someone with multiple DUIs on their record can expect to pay a lot more than they would normally pay. On the other hand, those who commit minor offenses—such as a ticket for talking on the phone while driving—will pay slightly more. But then again, there are many factors that go into high-risk auto insurance, and estimates usually differ based on people’s circumstances.
Since we’ve solved the problem, here are some ways you can lower your high-risk auto insurance coverage.
You can’t help how old you are or if you’ve gone through a period without a car, but there are some risk factors you can work on to lower your premium for high-risk auto insurance.
Over time, you have more control over your insurance premiums than you think. If you are a discreet and safe driver, it is a good idea.
We got it. Points happen. Maybe you belong to the age that is considered high risk. And everyone makes mistakes. If you make your own while behind the wheel, you’ll still need car insurance. And because many insurance providers may also not sell high-risk insurance, it can be difficult to know where to change.
Fortunately, you can get help from our group of reliable and independent insurance professionals called Supported Local Services companies. These representatives can search for the best deals on high risk insurance—or any other type of auto insurance! Our pros are rocking celebrities, they have the heart of an instructor, and they live in your community—so they know all the laws you define and how they affect your insurance costs.