What Is The Average Cost Of High-Risk Auto Insurance?

Key Points:

• High-risk drivers get the same coverage as those with clean driving records, but at higher rates.
• Drivers with DUIs typically pay the highest rates for auto insurance.
• Completing defensive driving courses and working to improve credit scores are two ways high-risk drivers can cut down on car insurance costs.

On average, high-risk car insurance costs as much as 84 percent more than standard car insurance according to our rate estimates. Many drivers are classified as “high-risk” by insurance companies, including young motorists and those with numerous accidents or infractions in their driving history.

In this article, we’ll examine average costs for high-risk auto insurance. We’ll also show you ways to lower your auto insurance premium if you fall into this category.

Keep in mind that the only way to know with certainty how much you will pay for car insurance is to get a quote. This is because pricing varies depending on your location, vehicle, and more. Enter your zip code above to start comparing the best car insurance companies in your area.

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What Is High-Risk Auto Insurance?

High-risk auto insurance is insurance sold to drivers who have an increased risk of getting into an accident or not paying their insurance premium. High-risk drivers are offered the same insurance coverage plans as low-risk drivers, but at increased prices.

Drivers that might be considered “high-risk” include:

• Drivers convicted of Driving Under the Influence (DUI) or Driving While Intoxicated (DWI)
• Uninsured drivers who experience an at-fault accident
• Drivers with multiple speeding tickets or traffic offenses
• Drivers involved in vehicular assault or other violations involving negligence or severe endangerment of other drivers and/or pedestrians
• Young drivers or drivers with little experience
• Drivers with bad credit
• Drivers who have lapses in their insurance coverage

If a high-risk driver has had their license suspended or revoked, they may be required by the state Department of Motor Vehicles (DMV) to have an SR-22 form filled out by their insurance company before driving privileges can be reinstated.

What Is An SR-22?

An SR-22 is an official document proving that a driver bought a minimum level of liability coverage, a type of insurance that covers bodily injury and property damage caused by an accident.

Drivers that often require an SR-22 include:

• Drivers convicted of a DUI or DWI
• Uninsured drivers who experience an at-fault accident
• Drivers involved in vehicular assault or other violations involving negligence or severe endangerment of other drivers and/or pedestrians
• Drivers with multiple speeding tickets or traffic violations

Whether or not an insurance company will fill out an SR-22 for a driver is dependent on whether it sells high-risk auto insurance. Once an SR-22 form is received by a state’s DMV office, the state may reinstate the driver’s license.

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What Is the Average Cost Of High-Risk Auto Insurance?

According to rate estimates from Quadrant Information Services, a 30-year-old single male with good credit and a clean driving record who owns a 2020 Honda CR-V pays about $1,968 per year for full-coverage car insurance. However, if that driver has a poor credit score, he’ll pay an average of $3,614 for the same coverage, and if he has a DUI, he’ll pay $3,430. 

Since auto insurance rates by age vary widely, having moving violations, accidents, or DUIs on your record can raise  average rates in different amounts. What you pay also depends on your deductible and whether or not you have full coverage. There are also many factors that can qualify you as a high-risk driver. What you can know for sure is that your car insurance premiums will increase by some amount.

Car Insurance Rates For Drivers With Bad Credit

According to our rate estimates, drivers with poor credit can pay as much as 84 percent more for high-risk auto insurance costs on average than drivers with good credit. However, if you live in California, Hawaii, Massachusetts, or Michigan, your credit history won’t impact your score.

Car Insurance Rates For Bad Drivers

Having speeding tickets, car accidents, and DUI convictions on your driving record can make your auto insurance policy much more expensive. The following estimates apply to the same driver profile listed above.

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What Should I Do If I’m Denied Coverage?

If you’re denied coverage because of your risk level by one auto insurance provider, you should call other insurance companies to see if those companies will insure you. Providers are willing to take different levels of risk, and there’s a good chance that you’ll find one willing to insure you.

If you’ve called several providers and none have offered you car insurance coverage, here are some steps you can take according to the Insurance Information Institute (III).

1. Join a state-assigned risk pool. Auto insurers participate voluntarily in state-assigned risk pools. Each insurer that joins a risk pool must accept motorists assigned to it by the state.
2. Look for car insurance companies that advertise coverage for higher risk drivers. If you’ve called a few insurance providers and have been denied, search for companies that advertise high-risk driver coverage, like The General or State Farm.
3. Contact your state insurance department for help. Your state insurance department will likely be able to help you find a car insurance company that will insure you.

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How Can I Lower My High-Risk Auto Insurance Cost?

The III recommends these steps to lower your high-risk auto insurance cost.

• Take a defensive driving course to improve your driving skills. Teen drivers may also get lower rates for completing such a course.
• Never drink and drive. Make sure you always call an Uber or have a designated driver.
• Drive safely and obey traffic laws. By practicing safe driving habits and avoiding accidents and traffic citations, you can recover your record over time.
• Improve your credit score. You can do this by paying bills on time and paying off any existing credit card debt.
• Buy a safe car. Cars that get high safety ratings typically cost less to insure.

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Our Recommendations For Car High-Risk Auto Insurance

In our extensive industry research, Progressive, Geico, and State Farm stood out as the best high-risk car insurance companies. While these providers sell insurance for drivers in the high-risk category, there’s no guarantee that they’ll offer you coverage. If your risk is high enough that the insurance company won’t make a profit from your business, it can legally deny you coverage.

#1 Progressive: 4.5 Stars

Progressive began as a dedicated high-risk auto insurance company, and it continues to offer high-risk policies for most drivers. Our review team named Progressive auto insurance the best for high-risk drivers because of its great discounts for drivers in the high-risk category. We’ve also found that Progressive offers more affordable car insurance for risky drivers than other providers. 

According to Progressive, drivers save an average of $750 on its car insurance policies through the company’s discounts, and 99 percent of its auto customers earn at least one discount. It’s important to note that some discounts are only available in certain states.

Here are a few examples of Progressive discounts that can lower the price of high-risk auto insurance:

1. Teen discount: Car insurance rates for new drivers like teens are often higher than other drivers because of their limited experience, and Progressive offers discounts to those 18 years old and under.
2. Good student discount: Students who earn a B average or better get a car insurance discount with Progressive. In addition, college students without a car that live more than 100 miles from their parents’ residence are eligible for a discount.
3. Sign online discount: Progressive drivers save an average of 9 percent on their policy for simply signing documents online.

Learn more about this provider in our Progressive insurance review. 

#2 Geico: 4.5 Stars

Geico Casualty, the high-risk subsidiary of Geico, uses a points system to determine how much an individual will pay for a particular policy. It factors in how recent a high-risk driver’s accident or traffic violation was, for instance. Its points system can benefit high-risk drivers who’ve been safe drivers for at least a year.

In addition to its helpful points system, Geico offers roadside assistance, rental car reimbursement, and mechanical breakdown insurance. A large number of discount opportunities are also available–like discounts for bundling with a homeowners policy, insuring multiple cars, and more–to help you get the best rates possible.

#3 State Farm: 4.7 Stars

Like Progressive and Geico, State Farm offers outstanding coverage, affordable costs, and great customer service ratings. State Farm auto insurance is our first choice for students nationwide because of its generous age-specific discounts.

With State Farm’s Drive Safe and Save™ program, you can save money on the cost of high-risk auto insurance. During the program, a telemetric device or an app on your phone tracks the way you drive. If you drive safely, including easy accelerating and braking, you can receive sizable discounts.

Deciding Which Provider Is Right For You

Whenever you shop for quality, cheap car insurance, we recommend getting auto insurance quotes from multiple providers so you can compare coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.

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FAQ: High-Risk Auto Insurance

Below are some frequently asked questions about high-risk auto insurance:

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How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.

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