Cheap High Risk car Insurance Coverage: Best Companies & Rates?

Just because you’ve been made a high-risk driver doesn’t mean you’re doomed to pay impossibly high car insurance premiums for the rest of your life. Yes, high-risk drivers pay more for insurance than low-risk drivers: That’s the bitter truth, but there are tested-and-true ways for even the riskiest among us to find the cheapest car insurance that still fits their budget, while maintaining an adequate level of coverage.

High-risk auto insurance is structured around the fact that some drivers are more likely to need their coverage. Insurance firms rely on complex calculations to evaluate risk, and when you fall into a category of people likely to need more claims, you’re going to pay more for coverage. But you can also take steps to learn why you’re considered high risk and ways to shop the market to get better rates.

The good news is that high-risk status does not last forever. With time, perseverance and the right approach, you can enhance your position with insurers as well as obtain immediate relief through affordable options. This guide will take you through everything you need to know to get cheap high-risk car insurance, from understanding the risk factors that make you a risky driver to ways to make your premiums low.

So if you just got a DUI, have racked up numerous traffic violations or have lapsed in coverage, don’t worry, there are insurance companies who can work with you and will offer you a great deal. Let’s take a look at how to get them and get the most out of them.

Understanding High-Risk Driver Classification

Insurance carriers decide who is a high-risk driver by considering certain risk factors that make an insured likely to file claims. Your driving history is the main factor, so recent accidents, tickets and citations hold the most power in the number crunching.

Being convicted of DUI or DWI will most likely classify you as a high-risk driver, for three to five years in most states. Reckless driving tickets for pushing the envelope, as well as too many speeding tickets (over a certain threshold), or at-fault accidents have the same risk message to insurance companies. When a trooper writes more than one ticket in a short period of time, that’s a pattern that speaks to reckless driving behavior.

Of course ages and experience play huge parts in all this too. Teenagers behind the wheel and those new to driving don’t have a statistical record of safety from years of driving. On the other hand, older drivers might be charged more for concerns about slower reaction times and vision modifications.

Your insurance history matters too. Breaks in coverage of any duration signal to insurers that a policyholder is in financial trouble or careless. They see continuous coverage as a sign of responsibility, and gaps can make you a more expensive risk to insure. Similar to the experience on property insurance, submitting numerous claims within a short period, whether or not it was at fault, can result in high risk classification.

In most states, credit scores now play a role in determining the cost of a driver’s auto insurance. Credit history considerations are based on data from the insurance industry. Companies believe that drivers with poor credit are more likely to file future claims, so they charge these drivers higher premiums.

5 Tried and True Solutions to Get Cheap High Risk Insurance

This is even more important if you’re a high risk driver. Insurance providers focus on different risks sources and their pricing models are very diverse. What is very high-risk for one company could be only medium-risk for another.

Begin by getting quotes from five to seven or more insurers. Make sure you check national carriers as well as regional companies. Companies such as The General target drivers with a high risk profile, and they might be able to provide better rates than other insurers. Progressive is perhaps best known for offering coverage for high-risk drivers with their special programs and Geico often has competitive rates for drivers with violations, or even high-risk drivers.

You may want to explore an independent insurance agent that represents multiple insurers. They know which insurers are most forgiving about certain convictions and then fast track your search. They typically have contacts among specialty insurers that do not sell directly to the consumer but provide very competitive rates for high-risk drivers.

There’s also the good old online comparison website, but it may miss aesthetic value that could be had. Start with them, but supplement them. Some of the best high-risk driver deals do not appear on comparison sites.

Take notice of how every company addresses your risk factors specifically. Some insurance companies are more lenient with credit problems, and others place greater importance on your driving record. A company that focuses primarily on DUI cases could offer the best rates, even if you have perfect credit.

Smart Quote Comparison Techniques

When you compare quotes, make sure you are comparing apples to apples. Demand equality in covera When coverage differences are minimal, even tiny differences in price can yield a very different best price that is a challenge to pin down.

Document everything as you quote. Make a spreadsheet that lists the rates, coverage, discounts, and customer service ratings for each company. This organization is key when you’re dealing with multiple quotes and trying to make an informed decision.

Do not simply go for the lowest premium; take into account the reputation and financial strength of the insurer. Verify customer satisfaction ratings via J.D. Power and financial strength ratings through AM Best. A company that has rock-bottom rates but lacks quality customer service or has shoddy financials may end up costing you more in the long run.

Nail down specific prices for rate hikes. Some companies advertise low initial rates but jack up prices at renewal time. You also benefit from knowing the life cycle of how each provider renews high-risk drivers so you can plan ahead and avoid any unwelcome surprises.

Look at the overall cost, not just the monthly premium. Factor deductibles, limits and discounts in. A policy with a slightly higher premium but lower deductibles may even save you money should you need to file a claim.

Qualifying for Better Rates with a Cleaner Driving Record

The condition of your driving record is among the factors that will determine your insurance rates so it’s something you need to work on improving. Most moving violations stay on your driving record for three to five years, but more severe offenses — like a DUI — can impact your rates for as long as 10 years. But the effect normally wanes with the age of violations.

If your state offers insurance discounts for completion, sign up for a defensive driving course. Many insurers offer 5-10% discounts to drivers who finish such courses, and the information can actually make you a safer driver. Additionally, some states allow you to take a defensive driving course to have points reduced from your license, further enhancing your relationship with insurers.

Look into a telematics program from an insurer, such as Progressive’s Snapshot or Allstate’s Drivewise. These programs track your driving through a mobile app or a device installed in your vehicle. With good driving habits, you can save even more at the insurer’s discretion, such as up to 30% off the premium. For high-risk drivers like these, such a test program would allow them to demonstrate their improved behaviors with real data.

Structure your insurance so coverages don’t lapse, even if it means paying higher rates at first. Gaps in coverage only make your high-risk status worse, and they can result in even higher premiums when you go back to the market. If you can’t afford comprehensive coverage, try to at least carry liability coverage in order to keep your history of coverage continuous.

Fight unfair tickets when possible. (And never mind that, for payment upfront, those legal fees can seem high: Avoiding a conviction on your record can save you hundreds of dollars in insurance premiums over several years.) Talk to a traffic lawyer and learn what your options are and how much you would save in the long run.

Maximizing Insurance Discounts

Men’sRunningHUGE DiscountsYou Lose Out TooHigh risk drivers have a history of missing out on potential discounts that could amount to extremely generous savings on premiums. Even if you are not eligible to receive them however, there are plenty of other options available to help you save on costs.

There are some multi-policy discounts that result in large savings when you combine car insurance with home, renters, or life insurance. Even high risk drivers are able to save as much as 10-25 percent if they bundle all their insurance related requirements under one and same roof with one provider. These savings can sometimes be more than you’d save by splitting your policies up among multiple insurers.

You may qualify for discounts on the car safety features regardless of your driving history. Anti-lock brakes, airbags, anti-theft devices, and automatic emergency braking systems all make the list of possible discounts with most insurance companies. Finally, think about how some of your high-risk surcharges might be offset if you are in the market for a new car and safety features make it less expensive to insure.

Insurance companies cut special deals on group rates with professional organizations, alumni associations and employers. The savings opportunities Tax-advantaged benefit: Check with your employer’s HR department, as well as any professional organizations that you belong to.

Payment discounts offer awards to customers who make one annual premium payment in full or pay monthly through an automatic payment method. Paying annually is a larger upfront investment, but it’s often 5-10% cheaper than paying monthly. Auto-payments discounts tend to be lesser in amount, but do not require further attention after enrolling.

If you don’t drive very often, look into usage-based insurance. Some companies offer pay-per-mile policies, which can lead to big savings for drivers who aren’t on the roads as often, even if their driving records are less than perfect. If you work from home or have access to excellent public transportation, this move could save you a significant chunk of change.

Alternative Insurance Solutions

There are other alternatives that can provide similarly effective coverage as traditional insurance for a fraction of the cost when traditional insurance is too expensive. Several states do have state-sponsored insurance plans for drivers who are unable to obtain insurance in the regular market.

Assigned risk pools (residual markets) ensure that high-risk drivers can get, at minimum, the coverage required in their state. Although rates on these programs are generally more expensive than on preferred markets, they’re controlled, and they can at times be less expensive than some private high-risk insurers. States all design their programs how they see fit, so be diligent in researching what options are available to you.

Non-standard auto insurance companies focus solely on risky drivers, and they often offer better rates than large, national insurers that want to enter the high-risk market. There are companies such as The General, Safe Auto and Bristol West which specialize in this sector of the market and it knows how to price risk more accurately for drivers with violations.

You could also try raising your deductibles to reduce your premiums. Higher deductibles mean you’ll have to pay more out-of-pocket if you get in an accident, but could drastically lower your monthly costs. This works best if you have emergency savings set aside to cover the higher deductible if you end up needing it.

Liability-only coverage deletes the cost of comprehensive and collision insurance and that helps keep your premiums pennies per day. This strategy raises your exposure to financial risk if your car is damaged, but may be the only way to get affordable insurance that meets your state’s minimum coverage requirements. Definitely weigh this option, especially if your car is quite valuable.

Working with Insurance Professionals

The insurance agent or broker can be your best friend when dealing with the high risk insurance market. Backed By Professionals – Independent agents do business with many different companies, and they know where to find you the best rate.

Get ready for your agent meeting by assembling the paperwork. The driving record, previous insurance declarations pages and details regarding any violations or claims. The more transparency you can give on the front end, the more accurately your agent can evaluate your options.

Be candid about your driving record and money matters. If you try to conceal any violations, or if you do a misrepresentation of your situation, you’re setting up for you to have policy cancelled later because as soon as the truth is discovered by the underwriter, the game is over.

Inquire if the larger insurance companies have specialty programs. Many large insurers have high-risk divisions that work under another brand name, or that offer niche products to which they do not draw widespread attention. Your agent can facilitate your access to these programs and help you understand their requirements.

You might want to find agents who deal with high-risk insurance. As professionals, they know the market well and still have relationships with insurers who specialize in drivers with violations. And their experience can save you serious time and perhaps point you in direction you might not have found on your own.

Building Long-Term Insurance Success

High risk auto insurance is something that you will overcome sooner than later. Zero in on strategies that can increase your insurability as time goes by while controlling to the best of your ability what you’re paying for now.

Do not stop coverage even if rate go up. Lapses in coverage reset the clock on your high-risk status, and you may face even higher premiums the next time you shop for insurance. If rates are becoming unaffordable, consider cutting back coverage levels or raising deductibles, rather than canceling your policy altogether.

Stay on top of your driving record and know when violations will clear. Plan for rate decreases as your record improves and shop for new coverage as major violations age off your record. Some insurers provide “step-down” programs to lower rates incrementally as your violations age.

Formulate what that value would be over the long term if a customer stayed with only one insurer rather than shopping annually. Shoppers should look around, of course, but some insurers such loyalty discounts and may be more forgiving of past infractions as you improve your behavior over time.

Let’s make friends with our insurance company though timely premiums and fewer claims. Businesses like good customers, and they may be willing to scale back those rates, or offer more rate flexibility, at renewal time to drivers in good account standing despite past violations.

Smart Insurance Decisions That Will Protect Your Family

The task of locating the most affordable high-risk car insurance can be one that takes patience, diligence, and a little bit of game-play. The secret is to know your options, shop around with multiple insurers, and work on the long term — improving your driving record and insurability.

It’s important to remember that high-risk status is temporary. Leaving a coverage gap, driving safely and securing discounts will allow you to transition back to preferred insurance markets slowly. Put in the work now to find cheap coverage and better your record, and it will save you for years to come.

Begin your search now by getting quotes from numerous insurers, traditional and high-risk alike. You should look into an independent agent who will make sure you’re able to check out everything that’s available. More importantly concentrate on becoming a safer driver and still saving money on your existing insurance today.

You are not high risk forever. Get it right, stick with it, and you may be able to not only grab affordable coverage today, but also work toward a future where insurance is cheaper and choices are better.