Best Cheap Car Insurance Companies for High-Risk Drivers (2023)

Drivers in the high-risk category often grapple with finding car insurance due to factors like speeding tickets, at-fault accidents, or a DUI conviction. Yet it’s more than these obvious indicators that can land you in the high-risk category. Age, credit history, and other factors can also make you riskier to insure, making the search for high-risk car insurance companies even more important.

However, nonstandard insurance companies specialize in insuring risky drivers. They offer policies tailored to accommodate high-risk circumstances, giving you coverage at competitive rates.

Cheapest car insurance rates for high-risk drivers

High-risk drivers can find themselves navigating the challenges of car insurance rates. The increased liability they pose to insurance companies translates into higher premiums. Here’s a snapshot of average monthly quotes from various insurance companies for high-risk coverage. You’ll notice a range of quotes, starting at just $71.

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The below rates are estimated rates current as of: Thursday, November 30 at 11:00 AM PST. 

Data reviewed by Konstantin Halachev

Konstantin HalachevVice President of Engineering

• 7+ years experience in data analysis

• Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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Insurance Company	Average Monthly Quote
Auto-Owners	46
USAA	50
State Farm	57
GEICO	60
Allstate	68
Root	89
Safeco	89
Nationwide	96
Dairyland	99
State Auto	159

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Who is considered a high-risk driver?

High-risk car insurance companies don’t have an industry-standard definition for a high-risk driver. It usually involves a poor driving record, a low credit-based insurance score, or a lack of experience. You can also be riskier to insure if you have insurance violations such as not having proof of insurance or lapses for nonpayment, live in an area with high vehicle theft and vandalism rates, or own a custom or high-performance car.^[1]

Best car insurance companies for high-risk drivers

When you need a high-risk policy, finding a high-risk auto insurance company is crucial. Here are some of the best car insurance companies that cover drivers with a spotty history.

National General

National General became part of Allstate in 2021. It has an A+ (Superior) financial strength rating from AM Best for financial stability, offers many discounts you’d expect, and pays most minor claims within 48 hours.

It’s a nonstandard car insurance company that provides SR-22 forms — a requirement for some drivers with serious infractions. Additionally, National General offers a usage-based telematics program that rewards safe driving with lower rates, making it an attractive option for high-risk drivers who are working to improve their records.

GEICO

While GEICO is typically a standard insurer, it also provides coverage for high-risk drivers, making it a versatile choice. GEICO has superior financial stability and is among the 5% of property and casualty companies that earned an A++ from AM Best, the highest possible rating. J.D. Power also ranks it above average for customer satisfaction in claims handling, according to a 2022 study.^[2]

It offers competitive rates and can file an SR-22 or FR-44 certificate with your state's department of motor vehicles if needed. You’ll also find a variety of discounts to help lower your premium, including a 23% discount if your car has an airbag and additional savings if you take a defensive driving course.

American Family

American Family is an excellent choice for high-risk car insurance because it offers a variety of coverage options and discounts. You can customize your policy to suit your needs, giving you more control over what you pay.

The company has an A (Excellent) rating from AM Best, indicating a solid financial standing. Additionally, J.D. Power ranked American Family second in customer satisfaction in the central U.S. for 2023. However, it has a smaller footprint. American Family car insurance is available in only 19 states.

Dairyland

Dairyland offers low down payments and flexible payment options for the budget-conscious driver. It offers SR-22, FR-44, and nonowner coverage, catering to drivers who need proof of insurance or who don’t own a vehicle but still drive.

You can choose from different customization options, such as basic liability, comprehensive and collision coverage, personal injury protection, nonowner insurance, and even SR-22 coverage. Dairyland has an A+ rating from A.M. Best, indicating long-term stability.

The General

If you have driving violations or let your insurance lapse or expire, you can turn to The General for nonstandard car insurance. The General is a wholly owned subsidiary of American Family, has an A- rating from AM Best, and is available in 46 states plus Washington, D.C., making it a great choice for drivers in most locations.

The General offers SR-22 and FR-44 insurance, and can even file the certificate for you with your state's motor vehicles department. It has limited discounts, but you’ll have a chance to save if you pay your policy in full, take driving training courses, or earn good grades.

Methodology

We used a multi-faceted approach to determine which high-risk car insurance companies to feature on this list. We first relied on trusted industry evaluators, like A.M. Best and J.D. Power, for external third-party ratings, which gave us valuable insights into each company’s financial strength, customer service, and claim handling.

We then applied our proprietary rating system, the Insurify Quality (IQ) Score, to evaluate companies on various parameters, such as policy pricing, user ratings, and claim satisfaction. We also researched the discounts each insurer offers, considering their effect on affordability for high-risk policyholders. Our goal was to conduct a comprehensive assessment that focused on policy cost-effectiveness, the overall customer experience, and the insurance companies’ stability.

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Factors that affect car insurance rates

Insurers consider more than a dozen individual rating factors when determining car insurance quotes. These factors help them assess the risk of issuing you an insurance policy and ultimately influence the amount you pay.

• 

  Age

  Generally, younger drivers, especially teens and those younger than 25, face higher premiums because they lack driving experience and get into accidents more frequently. They’re also more likely to engage in risky behaviors behind the wheel — 43% of high school students in the U.S. don’t wear a seat belt regularly, and 39% have sent a text or email while driving, according to the Centers for Disease Control and Prevention.^[3]

  As you mature and gain more experience, you’ll see rates decrease. Mature drivers with a track record of responsible driving often have the lowest premiums.^[4]

• 

  Driving record and history

  Auto insurance companies closely examine your past driving behavior to assess the risk of insuring you. A history of at-fault accidents, traffic violations, and filing insurance claims indicates a higher likelihood of future incidents, leading to more expensive premiums.^[5] If you have a poor driving history, practicing safe driving habits can gradually improve your insurance rates and make it easier to get coverage with a standard insurer.

• 

  Vehicle

  Your car’s make, model, age, and safety features influence your rate. You’ll typically get a higher quote if your vehicle has higher horsepower or expensive repair costs. Choosing a car with safety features — like anti-lock brakes, airbags, and advanced driver assistance systems — can qualify you for discounts or lower premiums.^[4]

• 

  Location and associated crime rates

  Your location, right down to the ZIP code, factors into your car insurance bill. “If a ZIP code has been known to have a lot of claims paid out, that may also lead to a higher rate,” says Zachery McGivens, a licensed insurance agent with SelectQuote. Population density, traffic congestion, and the frequency and severity of accidents can also affect your premiums. Crime rates, including vandalism and auto theft, also have an effect.^[4]

• 

  Credit score

  “High-risk drivers may not be aware that they have an insurance score similar to a credit score,” says McGivens. Companies use it as an indicator of financial responsibility and stability. Because high credit scores generally mean lower risk, you can pay less if your credit is in the “good” or “excellent” range.

  However, it isn’t legal everywhere. Several states — California, Hawaii, Michigan and Massachusetts — ban limit companies from using consumers’ credit histories when setting premiums or renewing policies.^[6]Other states limit how insurers can use credit information in insurance decisions.

How to find cheaper car insurance rates as a high-risk driver

Finding cheaper car insurance rates when you’re in the high-risk category isn’t a walk in the park. Exploring a few strategies and taking proactive steps can help you lower your cost without sacrificing the coverage you need.

• 

  Improve your driving record

  One of the most effective ways to lower your car insurance bill as a high-risk driver is to improve your driving record. Start by following traffic laws, practicing safe driving habits, and avoiding accidents. A usage-based policy that uses telemetrics to monitor driving could help you save some money. Over time, your driving history will improve, and you’ll notice cheaper coverage options.

• 

  Take a defensive driving course

  Taking a defensive driving course can an insurance company that you’re working to improve your driving skills. Your insurance company may offer a discount for taking a defensive driving course, which may lead to lower premiums.

• 

  Re-evaluate your insurance coverage

  Take a closer look at your current insurance coverage to re-evaluate your policy details. You may find opportunities to save money without compromising the protection you need. Consider your policy limits first. You don’t want to drop coverage altogether, but you can talk with your insurance company to understand the options for your specific situation.

  Also, review the extras you might be paying for. If you have roadside assistance through your auto warranty, auto club membership, or credit card, for example, you may want to drop it from your auto policy to cut costs.

• 

  Bundle your policies

  Bundling is a tried-and-true method to lower your overall insurance costs. Buying your home or renters insurance from the same company as your car insurance can unlock a bundling discount – sometimes as much as 25%. Be sure to compare rates and coverage to make sure you’re getting the best deal.

• 

  Raise your deductible

  The deductible is the amount of money you agree to pay toward the repair costs when filing a claim. Typically, the higher your deductible, the lower your premiums will be. However, it’s crucial to find a balance and select a deductible you can comfortably afford in case you need to make a collision or comprehensive claim. Setting it too high may lead to financial strain in the event of an accident, since you'll have to pay the deductible amount out of pocket.

Finding car insurance after being denied coverage

An insurance company denying you car insurance coverage can be disheartening, but it doesn’t mean you’re completely out of options. You might qualify for coverage through a state-sponsored auto insurance plan. Requirements can vary from state to state, but they generally include not being able to get coverage through the voluntary market.

You can’t choose which insurance company you get a policy from, and you’ll need an agent to help you apply for the program. Keep in mind that going through a state program will likely result in higher rates than what standard auto insurers typically offer.

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