High-risk drivers are drivers insurance companies view as having a higher risk of getting into an accident or filing a claim. As a result, insurers charge these drivers higher rates.
A company could consider you a high-risk driver for many reasons. Let’s take a look at the various factors that can affect your risk and how to find the cheapest car insurance as a high-risk driver.
Every insurance company uses a unique set of parameters to determine your risk and, consequently, your rate when you apply for a policy or when it’s time to renew. These parameters typically include your driving record, how much you drive, your credit score, your location, and your age. Here’s a breakdown of some of the most common factors auto insurers account for while determining your risk.
One of the primary factors auto insurance companies take into consideration when determining policy rates is your driving record, and having an accident on your record can increase your rates significantly.
There’s no set insurance standard for what constitutes a good or bad driver, but generally, auto insurance companies consider how many serious traffic violations and accidents you have on your record. This is because drivers with a bad driving history can be seen as riskier to insure since they’ve filed claims and cost their insurance company money in the past.
The table below shows the cheapest companies for drivers with an accident on their record, along with the average quote they offer such drivers.
| Insurance Company | Average Monthly Quote |
|---|---|
| State Farm | $160 |
| Erie | $162 |
| Travelers | $165 |
| USAA | $169 |
| Clearcover | $177 |
| Nationwide | $190 |
| GEICO | $200 |
| Safeco | $203 |
| American Family | $215 |
| National General | $228 |
| Farmers | $229 |
| Progressive | $244 |
| Liberty Mutual | $270 |
| Allstate | $270 |
| Dairyland | $340 |
Driving over the speed limit is quite dangerous and can result in a speeding ticket. A history of speeding tickets and the severity of your speeding ticket can make an insurance provider hesitant to offer you coverage.
Speeding ticket citations generally only remain on your driving record for three to five years, although how long they stick around varies by state. The cost increase caused by speeding tickets will typically affect your policy for at least three years.
The following table outlines the cheapest car insurance companies for drivers with speeding tickets on their records, along with the average quote they offer such drivers. The data shows that State Farm, Erie, and USAA have some of the cheapest quotes on average.
| Insurance Company | Average Monthly Quote |
|---|---|
| State Farm | $156 |
| Erie | $158 |
| USAA | $165 |
| Travelers | $182 |
| Nationwide | $183 |
| GEICO | $195 |
| American Family | $209 |
| Clearcover | $216 |
| Safeco | $218 |
| National General | $237 |
| Progressive | $237 |
| Farmers | $240 |
| Allstate | $263 |
| Liberty Mutual | $282 |
| State Auto | $297 |
Auto insurance providers in many states use a credit-based insurance score when determining how much of a risk you are to insure. This score is similar to your personal credit score.[1]
While you may not think that how you manage your personal finances affects your car insurance rate, many insurers rely on statistics that say your credit score is an indication of how likely you are to file a claim and how much that claim may cost the company. Credit management patterns, such as late payments, outstanding debt, having debt sent to collections, frequent new credit applications, and bankruptcy, correlate closely with insurance risk.
Some states, such as California, Hawaii, Massachusetts, and Michigan, have banned insurers from using your credit to determine your car insurance rate.
The table below details the cheapest car insurance companies for drivers with poor credit scores, along with the average quote they offer such drivers.
| Insurance Company | Average Monthly Quote |
|---|---|
| State Farm | $164 |
| Erie | $165 |
| USAA | $173 |
| Travelers | $181 |
| Nationwide | $195 |
| GEICO | $204 |
| Safeco | $208 |
| Clearcover | $215 |
| American Family | $220 |
| National General | $220 |
| Direct Auto | $233 |
| Progressive | $249 |
| Allstate | $276 |
| Mercury | $301 |
| Dairyland | $304 |
It’s illegal to drive without car insurance coverage in nearly every state.[2] A lapse in insurance can greatly impact the cost of your premium when you sign back up for auto insurance coverage.
You can see what average monthly auto insurance premiums look like for drivers with a lapse in their car insurance coverage by reviewing the following table.
| Insurance Company | Average Monthly Quote |
|---|---|
| State Farm | $198 |
| Erie | $199. |
| USAA | $209 |
| GEICO | $246 |
| National General | $259 |
| American Family | $265 |
| Direct Auto | $273 |
| Clearcover | $275 |
| Progressive | $300 |
| Allstate | $333 |
| Liberty Mutual | $360 |
| Dairyland | $364 |
| The General | $390 |
| Farmers | $417 |
| Bristol West | $445 |
Unfortunately for younger drivers, their age automatically puts them at a disadvantage with auto insurance providers. Drivers under the age of 25 are viewed as being riskier to insure. Even if they’re responsible drivers, they lack a proven driving record to back this up. Young drivers also tend to be in more accidents than older, more experienced drivers and are more likely to be distracted on the road.
This table outlines the average monthly auto insurance quotes for drivers under the age of 25.
| Insurance Company | Average Monthly Quote |
|---|---|
| State Farm | $193 |
| Erie | $195 |
| USAA | $204 |
| Travelers | $209 |
| Nationwide | $228 |
| Elephant | $229 |
| SafeAuto | $234 |
| GEICO | $240 |
| American Family | $258 |
| Clearcover | $259 |
| Progressive | $293 |
| National General | $307 |
| Allstate | $325 |
| Mercury | $333 |
| Farmers | $342 |
The following factors can also increase your risk profile and affect your car insurance costs:
Gender: Because male drivers statistically get in more accidents and have a higher incidence of driving under the influence (DUI) than female drivers, insurers view men as riskier to insure.
Car type: The type of car you drive can affect your risk of filing a claim and the cost of those claims. For example, some cars are more prone to theft, and other cars have notoriously high repair costs.
Car usage: The more someone drives, the more they increase their risk of needing to file a claim.
Location: Where you live can increase your risk level for a few reasons. Areas with severe weather can cause accidents and damage to cars. Cities that have high crime rates can experience more car theft, and areas with bad traffic levels can be seen as riskier places to insure a driver.
High-risk drivers can also be known as “nonstandard drivers” because they often need nonstandard policies. These are policies designed to provide coverage for high-risk applicants, such as people who live in areas with high rates of auto theft or drivers who have bad accident records.
If you’re considered a high-risk driver, these are some auto insurance companies that may be able to provide you with the coverage you need.
In every high-risk category Insurify examined, State Farm consistently had the lowest average monthly quotes. From being under the age of 25 to having accidents on your record, State Farm provided the best deal.
Erie is one of the best insurance options for young drivers, with quotes that were only about $1 higher than State Farm’s. Additionally, Erie offers a variety of discounts designed to help young drivers and college students.[3] Young drivers looking for car insurance should get a quote from Erie when comparing rates.
If you have accidents or speeding tickets on your driving record, you’ll find that Travelers offers one of the more affordable monthly premiums for drivers in your situation. Travelers has a handful of discounts that you can qualify for that don’t rely on a good driving history, like a discount for paying your premium in full.
Is your credit not in the best shape? Don’t worry, because USAA may still be able to offer you cheap car insurance. The company came in third for best average premiums for drivers with poor credit, and USAA makes it possible to save up to 30% on your premium if you practice good driving habits. This can make it possible to save while you work on repairing your credit score.
If you have a lapse in your insurance coverage, you should consider GEICO. GEICO charges some of the best rates for people with lapsed coverage. You can make up for your lapse by qualifying for one of its many discounts, such as taking a defensive driving course.
If you’re looking to keep your auto insurance rates low, try these money-saving tips:
Comparison shop. Doing some research before you choose a car insurance policy can help you find the right amount of coverage for the best price. Spend your time shopping with a few different auto insurance providers and comparing their offerings, but be careful not to focus solely on price. You want to find the lowest price for the amount of coverage you need, so make sure you compare the coverage options each provider is offering to find the best overall value. To speed up this process, you can use a comparison-shopping site that allows you to fill out just one form to receive multiple quotes in lieu of having to do this individually on each provider’s website. Then, you can conveniently review your offers all in one place.
Consider a pay-per-mile policy. If you don’t drive that often or that far, you may want to consider choosing a pay-per-mile policy that bases its price on how many miles you drive. This typically requires you to install a telematics device in your car to track your mileage and driving behavior. This can be an inexpensive option for drivers who work from home or who don’t have long commutes.
Ask for discounts. Car insurers offer a wide variety of discounts, so it never hurts to ask what discounts you may qualify for. For example, some insurance providers offer discounts for insuring more than one car or getting good grades.
Choose an inexpensive car. The less your car costs, the less it generally costs to insure because repair and replacement claims won’t cost as much.
Here are answers to some of the most common questions about getting car insurance when you’re a high-risk driver.
Being a high-risk applicant when it comes to car insurance means you’re more likely to file a claim than other drivers. Some of the factors that can make an applicant high-risk include having a bad driving record, being under 25, living somewhere where theft and vandalism rates are high, and having a bad credit report.
How long an accident remains on your driving record depends on the state you live in. For example, in the state of California, collisions stay on your record for three years,[4] whereas in New York, accidents stay on record until the end of the calendar year and then remain on record for an additional three years.
Young drivers under the age of 25 are seen as being one of the highest risks to insure and can pay over $900 a month for auto insurance, according to Insurify’s data. However, young drivers can reduce their insurance costs by comparison shopping and staying on their parents’ insurance policies while they still live with them.
While nonstandard drivers (drivers who are high-risk) may end up with higher premiums than less risky drivers, there are plenty of insurance providers they can work with. For example, State Farm charges the lowest rates in every high-risk car insurance category Insurify examined, and Erie offers many different discounts that can help young drivers save money.
Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
