High-risk car insurance
High-risk car insurance: How to shop for it?
If you have accidents and speeding tickets in your driving history , it negatively affects your car insurance. Drivers who are arrested by the police for driving under the influence of alcohol are considered high-risk drivers by car insurance companies.
How to shop for high-risk car insurance
High-risk drivers can buy standard policies from traditional car insurance policies. You can also purchase non-standard policies but there are some restrictions on these policies such as coverage limits, who can drive a car etc.
Small and niche companies come under a nonstandard market. These companies operate in the local market of the state only and some other largest company’s divisions are included in the nonstandard market.
How much car insurance gets a high-risk driver?
High-risk drivers mostly pay more car insurance premiums. MyMoneyMyQuotes team has found the data of high-risk drivers which describes that high-risk drivers may pay 80% more to insurance companies if they are arrested by police for driving under the influence of alcohol. Drivers with poor credit records may pay 75% more on car insurance premiums. For two speeding tickets, car insurance companies may charge 40-45% more for car insurance. If the driver has accidents in driving history then they may pay 30-35% more for car insurance.
Different car insurance companies treat high-risk drivers in a different manner. Some car insurance companies charge higher rates of insurance premiums from high-risk drivers. It is wise to check the insurance rates from the different car insurance companies before purchasing a high-risk insurance policy and select the best car insurance policy.
According to data found by our team drivers with poor credit and high risk may pay $1000 more than others. Average car insurance rates by different companies to the drivers with poor credit are:
- Allstate – $2900
- State farm – $3000
- Geico – $2075
- Progressive – $2652
- Nationwide – $2250
- Farmers – $3030
After speeding a ticket, average car insurance rates by some car insurance companies are given below:
- Allstate – $2245
- State farm – $1800
- Geico – $1455
- Progressive – $1922
- Nationwide – $1910
- Farmers – $2155
How to get car insurance for high-risk drivers?
Following are some car insurance companies in the USA that offer car insurance to high-risk drivers:
- Titan insurance
- Direct auto insurance
- Dairyland insurance
- The General
- Safe auto insurance
- United automobile insurance company
- Infinity insurance
- Access Auto insurance
- Alliance United insurance
- GAINSCO Auto insurance
- Bristol West Insurance
But you should compare the rates of car insurance from different car insurance companies to save on the high-risk insurance policy.
Some companies sell nonstandard car insurance policies which put restrictions on who can drive a car. This type of car insurance policy covers only specific drivers. The standard car insurance policy covers occasional drivers.
Driving records of the drivers are reviewed by the car insurance companies every year. Car insurance companies decide car insurance premiums by analyzing the driving records of the drivers on policy renewal time. If drivers have violations in their driving history then they increase car insurance premiums for them.
If you may not be insured for punitive damages then your nonstandard policy may not cover the damages due to the accident. You may be sued in the court for punitive damages.
What is a high-risk driver?
There are different categories of high-risk drivers based on different factors such as credit history, driving record, recent insurance claims.
- Preferred risk driver: Car insurance companies provide insurance policies on cheap rates to these drivers because they consider them the drivers with low risk. These drivers are with a clean driving history and no speeding tickets and they are more than 25 years of age. These drivers have a safe driving record and live in the areas with no theft and vandalism records.
- Standard risk driver: These drivers have average credit records and violations are limited in their driving history. Insurance companies found these drivers as average risk drivers. Car insurance companies sell car insurance to these drivers on average rates.
- Nonstandard risk driver: The level of risk is high for these drivers. Insurance companies may charge high rates of premiums from these drivers. These drivers include young drivers, inexperienced drivers, drivers with violations in their driving records, drivers with multiple speeding tickets, and drivers with DUI.
- Assigned risk driver: These drivers are mostly rejected by car insurance companies. Car insurance companies may charge two or 3 times more amount of car insurance premiums than average car insurance rates from these drivers.
How do you know if you are a high-risk driver?
The risk level of drivers is determined on the basis of different factors by car insurance companies before deciding the car insurance premiums:
- A poor credit record: Mostly, car insurance companies charge high car insurance premiums from the drivers with poor credit record.
- A lapsed insurance policy: If you make any default in the payment of car insurance premiums and your car insurance policy is canceled by the insurer. After that car insurance companies charge higher car insurance premiums.
- Inexperienced and young drivers: Young drivers and inexperienced drivers are found riskier by car insurance. So, car insurance companies sell car insurance policies to these drivers at higher premiums. But with a safe driving record, you can save a lot on an insurance policy.
- Your profession: According to car insurance companies drivers who drive long distances for jobs or work are riskier. So, car insurance premiums are high for these drivers.
- Your car: Car insurance premiums also depend upon the type of car. High powered cars like sports cars are riskier and their repair cost is high. Car insurance companies charge high insurance premiums on these types of cars.
What if I can’t find high-risk insurance?
How long does it take to not be considered a high-risk driver?
- Some car insurance companies do not consider violations of driving records and poor credit history if the driver has a clean driving record from the past three to four years. These rules are different for different companies and vary from state to state. But some companies check the driving history of the past 5 years.
- In some states, insurance companies give scoring to the incidents. Scores and points are assigned to the drivers on the basis of violations in driving record, credit history, recent insurance claims, etc. If the incident is more serious then you receive more points.
- Car insurance premiums are calculated based on these points by insurers. Your insurer tells you how long it will take for your insurance scores. It is wise to maintain a safe driving record, good credit record, and timely payments of insurance premiums to get the best insurance policies.
Finding a good price for an auto insurance quote can be quite overwhelming and confusing for many. Understanding your car insurance coverages and finding a cheap car insurance quotes can be a very time consuming and complex process. At MyMoneyMyQuotes.com, consumers can shop and compare auto insurance quotes online for free and find the best and cheap auto insurance rates for their coverage needs for their policy.