NEWS
Cheapest Car Insurance Companies for High-Risk Drivers In 2023
Companies consider a customer’s driving history and driver profile when determining how much to charge for car insurance.
Higher-risk drivers pay higher rates. Based on their driving record, the driver may be considered high-risk if they have a history of receiving tickets or being involved in accidents.
Others may be deemed high-risk due to specific characteristics. Young or inexperienced drivers, drivers with poor credit, and drivers with particular car models are all examples.
We found the best and cheapest car insurance companies for high-risk drivers. Those unable to obtain coverage through an insurance company should look into a residual market plan, in which state insurance regulators assign you to an insurer.
What is high-risk auto insurance?
High-risk auto insurance is no different than regular auto insurance. The difference is in the driver.
High-risk drivers have a history of being at fault in an accident, receiving speeding tickets, or other infractions. Insurance companies are hesitant to insure these drivers because they are more likely to file claims.
According to data, younger drivers who have bad credit or live in specific ZIP codes are more likely to file or have a claim against them.
High-risk drivers almost always pay higher auto insurance rates and have fewer options for car insurance companies as a result of this increased risk. This is why many high-risk drivers also look for life insurance companies that may also provide some auto insurance benefits as an add-on. It is not precisely similar to the benefits one may get from car insurance, but it is still beneficial. Additionally, to know the rate of such insurance, you must also compare the life insurance rates by age & gender, as they may vary.
However, some companies provide cheap car insurance to high-risk drivers, such as:
1. Autoinsurance
Since 2000, Autoinsurance has been a free online resource for anyone interested in learning more about auto insurance.
They aim to be an unbiased, third-party resource for the best insurance for high-risk drivers and auto insurance. They regularly update their website and have a directory of articles and guides to help you get started searching for the cheapest auto insurance rates.
Online research can be difficult. The types of coverage, factors influencing your rates, and best practices for finding the right provider differ greatly between websites.
They’ve taken the legwork out of online research by compiling the most comprehensive resources. Significantly, they are not a government-run website or owned by any insurance company.
2. USAA
USAA is well-known for providing low-cost car insurance, which is true for high-risk drivers. Car insurance rates at USAA do not rise as dramatically as some of its competitors.
However, not everyone has access to USAA coverage.
Customers must be military personnel or their immediate family members to purchase a policy. USAA provides accident forgiveness, which can prevent your rates from rising following an at-fault accident. If you qualify for USAA, it could be a good option if you want cheap car insurance from a reputable insurer. Other ways for high-risk drivers to save money on a USAA car insurance policy include:
- Installing an anti-theft device
- Enrollment in the SafePilot telematics program
- Multiple policy bundling
3. The General
Because it can insure almost any type of high-risk driver, The General is one of the best high-risk insurers for basic coverage. It can help if you have bad credit, a history of accidents or traffic violations, or have been uninsured. Furthermore, the company has local agents who can assist you with your problems.
The company provides easy payment options with low down payments. Even though coverage options are limited and there is little information online, the General is best if you are looking for basic or minimum insurance coverage.
4. American Family Insurance
American Family Insurance currently serves only 19 states, making it less geographically diverse than other major insurance companies. However, high-risk drivers living in a state where policies are available should consider American Families.
After minor traffic violations, the company’s rates typically rise by a small margin. Customers can avoid steep rate increases after their first at-fault accident thanks to the company’s accident forgiveness policy. You must meet the following criteria to be eligible for this coverage:
- Maintain an accident-free record for five years
- No major violations or infractions
- Must have held an American Family policy for five years
5. State Farm
State Farm is among the largest insurance companies in the United States. While State Farm is not known for being the cheapest option, high-risk drivers can expect relatively minor increases in their premiums after committing several different driving violations. The company also provides discounts that may mitigate the impact of a poor driving record, such as:
- Bundling multiple policies
- Enrollment in the State Farm Drive Safe & SaveTM and Steer Clear programs
- Vehicle safety discounts
- Driver training or defensive driving courses
What Makes a Driver High-Risk?
Insurance companies use a driver’s past driving, claims, and insurance history to predict whether or not they will file additional claims in the future. Among the specific factors are the following:
1. Excessive Speeding
Driving at excessively high speeds gives you less time to adjust to potentially dangerous situations and correct your course. Driving 15 mph or more over the speed limit, or continuing to speed after receiving a speeding ticket, can indicate to an insurance company that a driver is particularly high-risk and reckless.
2. Age
When it comes to driving, youth equates to inexperience behind the wheel of a motor vehicle — to put it simply, a young driver is more of a risk. Auto insurance companies consider teenage drivers high-risk due to their lack of driving experience, which correlates to an increased likelihood of filing a claim.
3. Having Poor Credit
Poor credit drivers are statistically more likely to file more claims. As a result, insurance companies frequently consider this when calculating insurance rates, even though it is illegal in some states.
4. Doing a Hit-and-Run
Causing an accident and fleeing the scene is a serious offense that may result in criminal charges. Drivers with a hit-and-run record are more likely to be classified as high-risk drivers by car insurance companies.
Bottomline
You can expect to pay higher insurance rates if you are a high-risk driver. Finding the best car insurance with a suspended license or a DUI on your record, on the other hand, can be difficult, even if you’re willing to pay high coverage rates.
The best way to find low-cost car insurance for a high-risk driver is to shop online and compare quotes from multiple companies.
Your car insurance rates should fall as time passes and your driving record improves. On the other hand, shopping around and comparing rates is always a good idea to ensure you aren’t overpaying for coverage.
Umar Nisar was born and raised in the busy city of Abbottabad. As a journalist, Umar Nisar has contributed to many online publications including PAK Today and the Huffing Post. In regards to academics, Umar Nisar earned a degree in business from the Abbottabad UST, Havelian. Umar Nisar follows the money and covers all aspects of emerging tech here at The Hear Up.
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