High Risk Auto Insurance

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quick highlights

Most tickets, like speeding or running a stop sign, fall off your record after 3 years.

Consider selling your high performance vehicle until your record cleans up.

2nd tier insurance companies like “The General” may be your cheapest option.

If you’ve ever had a DUI, multiple accidents, or have poor credit then you may already be familiar with high risk auto insurance.

And if not, lucky you.

But, if you ever find yourself classified as “high risk” by your car insurance provider, it may be worth a minute to read through this article and find ways to play the car insurance game with some dings on your record.

While multiple driving infractions is the main reason individuals need high risk car insurance, sometimes it’s because of the type of car they own.

If you have a car that is high performance or would be expensive to replace, you are probably already familiar with the potential high cost of car insurance.

If you get a ticket or two and then have to also pay because of the expensive, high performance car you drive, it may be time to make some tough decisions.

Paying for high risk insurance may not be worth it to keep the car you love.

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If you have incidents on your record and have a high performance vehicle, consider selling it until your record is cleaned up.

It usually takes three years for most tickets to fall off your record, but it could take as long as 10 for a DUI or reckless driving to fall off.

Finally, factors like a driver’s age, personal credit score, or premium payment history can also impact your insurability and qualify you for high risk auto insurance.

What is High Risk Auto Insurance?

High Risk Auto Insurance is oftentimes referred to as “non standard” auto insurance.

It covers people who don’t qualify for standard auto insurance because they are deemed “high risk”.

The most common reason people need high risk auto insurance is because of driving infractions, such as a DUI.

High risk auto insurance is more expensive because it factors in the likelihood that the policyholder will cause more accidents.

If your vehicle is worth a lot of money or you have a car that is classified as a “sports car”, then your premiums may be higher.

This is because if your car were to be damaged it would cost a lot more than the average vehicle.

What High Risk Auto Insurance Companies are There?

Most of the auto insurance providers that you see on TV, names like State Farm, GEICO, or Mercury, actually have a few different insurance companies set up.

So when you buy insurance from State Farm, they will have several corporations set up under the “umbrella” of State Farm Insurance Company.

This allows them to sell different insurance policies to different people, at higher or lower prices.

It all depends on your “risk profile” and how many accidents they think you might cause.

Some of these sub-corporations are set up with low rates to offer good drivers cheap car insurance, while others are set up to offer high risk auto insurance at higher prices.

Dodo Definitions

Underwriting:

how insurance companies set pricing and select their policyholders. If your driving record, occupation, or vehicle type doesn’t line up with the underwriting guidelines, your car insurance is going to be “high risk” and more expensive.

Here's how this works:

  • Drivers with clean records will be filed into the company with the best rates.
  • The 2nd best drivers will get next best rates.
  • High Risk drivers go into a company with really high rates.

Many well known companies, like GEICO, Mercury, or All State, are high risk auto insurance companies that make this product available through their sub-tier car insurance companies.

There are also a 2nd tier of car insurance companies that may offer a more competitive quote.

Cheap High Risk Auto Insurance Companies

Companies that offer cheap high risk auto insurance include Bristol West, Hagerty Insurance, Kemper Auto Insurance, and The General.

These second tier companies may be cheaper than others, so it’s important to compare quotes when shopping for cheap high risk auto insurance. 

tips for success!

Dodo Tips

When shopping for high risk auto insurance, make sure you ask about discounts. Some car insurance companies will give you a discount for being a certain profession (teacher, engineer, etc.) All of them give a discount for bundling your home and auto insurance together.

Here’s a rundown of some of the most popular types of Cheap High Risk Auto Insurance Companies:

  • Geico - great mobile app and 24/7 customer service
  • Progressive - deductible can decrease with clean driving every 6 months
  • Hagerty - specializes in collector and rare sports cars
  • Infinity or Kemper - can cover a car with a salvage title
  • The General - can insure individuals with bad credit
  • State Farm - local agents, who can give you personalized service.
  • Bristol West - can cover drivers who earn money through rideshare apps (like Uber or Lyft)

Comparison quotes are quick, easy, and free!

How are High Risk Auto Insurance Premiums Calculated?

Almost all car insurance companies are regulated by the government, so the consumer can be protected.

A part of these regulations is requiring the car insurance company to tell the various state’s departments of insurance how much they are going to charge for their policies.

The insurance companies can only deviate from these rates a little bit.

This way, they can’t just make up whatever amount they want and rip off their customers.

They have to stay within the rate structure that they filed for that year.

In order to sell as much insurance as possible, they have to set up different insurance corporations, each with unique rates.

The rates are filed with the various state departments of insurance.

This way, a company like All State can offer really low rates to a good driver with good credit and sell a policy to a bad driver for a much higher price.

For example, when Joe Schmo calls in with 3 tickets in the past 2 years they can still quote him,

but his price is triple what Sally Kumquat’s rates would be, who has no tickets.

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How Much Does Cheap High Risk Auto Insurance Cost?

How much your cheap high risk auto insurance costs will depend on a few factors:

1. location

Where you live and work is going to matter.

Some areas are more “high risk” than others.

For example, someone with a hit and run on their record in Arizona could pay $1,820 more a year for insurance, while someone with a hit and run in Maine may only pay $523 more a year.

The states with the lowest hikes in insurance premiums for tickets are Utah, Virginia, Maine, Nebraska, and Alaska.

Location plays a really big role in how your insurance is priced.

Car insurance companies use “big data” to set their rates and they get really granular with that big data.

So they can even sub-divide cities into various sections.

A person living in one neighborhood might get lower rates than his friend across town, simply because the cheap high risk insurance companies see less claims in that area.


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Action Item:  Insurance companies study every part of your life when deciding on how to price your car insurance. This includes your personal credit score. If you have poor credit and a marginally bad driving record, the combination could push you into the “high risk” category.

You can probably fix your credit score a lot more quickly than your driving record, so start today! Check out some ideas on how to handle credit repair by clicking here.


2. severity of violation

Let’s say you’re caught speeding. If you’re only going 6-10 mph it will only increase your insurance premiums by roughly $293/year.

However, if you’re caught speeding by more than 21 mph you are looking at closer to $381 more per year in premiums.

3. type of violation

The type of violation and how risky it is deemed will also impact your premiums.

For example, if you’re ticketed for driving without a seatbelt this may cost you around $59 more per year in premiums.

Driving with a suspended license however? You’re looking at paying $918/year extra in premiums.

4. how long have you been ticket or accident free?

If you have an accident and a couple tickets within three years, you will be considered a “high risk” driver by auto insurance companies.

Your rates are going to be a lot higher and the only way they are coming down is by improving your driving record over time.

Most car insurance companies look at the past three years of your driving record most closely, but if you have a DUI or reckless driving on your record, they can look back as far as 10 years to see those dings to your Motor Vehicle Record.

I highly recommend getting a quote from Progressive if you have been ticket and accident free for the past three years.

They don’t look any further back than three years, so you will potentially save some money if you had a DUI or some at fault accidents in the past.

Here is a sad story...

Jane had what you might call “a series of unfortunate events”.

She was responsible for causing a three car pile up on the interstate two years ago when she was texting while driving 78 mph.

Dodo Definitions

She then got caught speeding while on her way home from work. She was going 60 in a 45 zone.

Then, she got a seat belt ticket last month!

All this happened within the last three years.

She never had a bad record, it just seems like the cops are watching her all the time these days.

Jane just got her auto insurance renewal from the company with a lizard masoc.

She was paying $300 every six months to cover her 2016 Honda Civic.

The new bill shows that she is being asked to pay $540 every six months!

She was shocked. Dismayed. Off the charts with rage.

She calls the insurance company and they explain that her driving record indicates she is probably going to cause an accident again soon, so she is a “high risk” driver.

Jane can either pay them the additional $240 or she can shop around.

Jane decides to shop around and finds another company willing to give her a car insurance policy for only $400 a month, with the same coverage as she had before.

While this is still an increase, it's not as bad as it could have been, had she not decided to shop around.

Comparison quotes are quick, easy, and free!

How to Lower the Risk of Needing High Risk Auto Insurance

If you’ve already qualified for auto insurance for high risk drivers, you want to make sure it never happens again.

If you are a good driver and want to make sure you stay in good standing with your regular, ahem cheaper, insurance there are a few things you can do:

  • Have a great personal credit score. 
  • Shop around rates every year or two
  • Ensure you always have auto insurance and don’t miss payments
  • Take a defensive driver safety course
  • Swap your sports car for a car that is slower or larger
  • Use an Uber if you have a few drinks and need to get home.

how long do tickets take to fall off?

Most tickets, like speeding or running a stop sign, fall off your record after 3 years. This means you’ll only be paying high-risk insurance premiums for as long as you’re deemed “high risk”.

However, if you’ve got a DUI or other serious infraction then it may stay on your record for 5-10 years.

The bad news? The premiums for auto insurance for high risk drivers will likely cost you more long term than the actual incident that qualified you.

If you need high risk auto insurance, make sure it’s the only time that you do and change your driving behavior ASAP.

Check this article on how tickets impact your rates:

https://www.thezebra.com/resources/research/traffic-tickets-raise-insurance-rates/ 

don't be a dodo!

Don't Make this Dodo Mistake

Watch out for this mistake!

When you start driving your car for a ridesharing or food delivery app, make sure to tell your car insurance company. If you don’t they could deny your claim. Driving your car for money changes everything!

Does ridesharing car insurance Qualify As High Risk? 

When you begin driving your car for money, you are entering into a confusing insurance web.

You will need to read the fine print on your car insurance company’s website and insurance policy to really understand how you are covered.

The two most popular ridesharing apps, Uber and Lyft, have very similar coverage offers.

They are both mainly concerned with backing up their drivers with proper insurance coverage while passengers are in the car.

They offer really low limits of coverage while drivers are trolling for rides:

  • $50,000 per person in Bodily Injury
  • $100,000 per accident in Bodily Injury
  • $25,000 per accident in Property Damage

If you cause an at fault accident and you send a couple people to the hospital, they will blow through $100,000 really quickly.

Bottom line, drivers for Uber or Lyft can’t depend on these companies to insure them correctly the entire time they are on the job.

This means you need to make sure you have a rideshare endorsed car insurance policy.

If you cause an accident and you haven’t picked up a customer, your car insurance may need to be involved in protecting you.

Without adding a “rideshare” endorsement to your policy, you may be out of luck.

Click here for our full article on Rideshare Insurance.

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Here is a sad story...

Ann and Tim live in Carlsbad, California. Just across the interstate from the pacific ocean.

Ann is 28 and Tim is 31. They both work and have no kids.

Dodo Definitions

Ann has a Toyota Camry. Tim has a Honda CR-V.

They have no tickets and each drive about 12,000 miles a year.

They recently shopped for auto insurance quotes and found 21st Century willing to sell them a liability only policy for $1,854 a year.

Melissa and Ron live just down the street from Ann and Tim. They are eerily similar in demographics.

Melissa is 29 and Ron is 31. Both have careers and don’t have any children.

Melissa drives a Honda Civic. Ron drives a Toyota Rav-4.

The difference is that they both have a speeding ticket within the past three years.

21st Century is willing to give them a quote on liability only policy, but its $2,450 a year.

That is $600 more than what they would insure Ann and Tim for, just because of a lousy speeding ticket!

This story is a perfect example of how car insurance companies set their rates.

Final Thoughts

If you find yourself in the “high risk” car insurance category, make sure to shop for quotes.

Cheap High risk auto insurance companies can be found and there are actually quite a few people who fall into this category.

So if you do your homework, shop around, and make good decisions moving forward, you will soon find yourself back with the “good drivers” and paying a lot less for car insurance.

New Jersey High Risk Auto Insurance

There are many ways to get placed in the category of New Jersey high risk auto insurance. Finding out that you are in that group can cause concern, especially regarding the added cost.

Cost Of High Risk Auto Insurance New Jersey 

One of the biggest problems with being in the high risk auto insurance group is that many providers won’t even offer you an insurance plan at all. However, if high- risk drivers find insurance to cover them, they can expect to pay a premium for the coverage. 

The average cost for auto insurance in New Jersey is almost $1,600. When you get pushed into the high risk category, you can be looking at an annual fee of over $3,800. That is a drastically higher bill to pay for the same service. 

Your exact rate will be significantly affected by what got you classified as high risk in the first place. You’ll want to hunt for deals to make that price more affordable. 


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Action Item:  When comparing auto insurance companies, don’t decide based on price alone.  Get two to three quotes, then call or chat online with the company and ask about their claims process.  Does it sound easy and reliable?  You can get started comparing quotes here. 


How To Get Cheap High Risk Auto Insurance New Jersey?

Even though you know that high risk insurance will cost more money, you still don’t want to overpay for it. Luckily there are a few ways to find deals on high risk auto insurance in New Jersey.   

You will want to shop around. Find out what deals the available companies are offering. Sometimes the rates can vary a lot between providers. 

If you are placed on high risk auto insurance because of driving problems, you will want to avoid any more accidents or tickets. Over time if you stop having new situations, you will eventually find yourself out of the high risk group.  

Many insurance companies offer discounts if you complete approved driving courses. These courses also teach skills that can help you become a safer driver.

Finding affordable car insurance in the high risk category can be tricky, but you can find plans with better rates that may be able to help you. 

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Switch and save on average $750/yr.  Bundle and save even more!  Compare best rates online in minutes!

Comparison quotes are quick, easy, and free!

Florida High Risk Auto Insurance

Florida requires all drivers to have insurance, but you have a bad driving record and insurance companies don't like high risk drivers. How do you get high risk auto insurance in Florida and what does it cost?

Cost Of High Risk Auto Insurance Florida 

Even if a good insurance company decides to take you on, your insurance will be higher than you might expect. Exactly how much higher depends on what you have on your driving record. 

Nationwide, drivers with no at-fault accidents pay $2,012 per year while in Florida, they pay $2,558.

With one at-fault accident, Florida drivers can expect to see their premiums increase by about $680 per year. 

However, at-fault accidents aren't the only thing that puts you into the high risk category. A speeding ticket can cause your premiums to rise by $548 per year. They'll go up by $297 for a distracted driving violation, $981 for reckless driving, and a whopping $1,035 per year for street racing. 

If you have a DUI, your insurance premiums will rise by $1,085. It's one percent lower than the increase in the national average, but it's still a hefty hike and a second violation will be much worse. 

How To Get Cheap High Risk Auto Insurance Florida

Fortunately, even if you have these kinds of things on your driving record, you can still get affordable, high risk insurance in Florida. Not every insurer will turn you down because of tickets, an at-fault accident, or even a DUI. You simply call them for quotes like you would even with a clean driving record.

USAA, Geico, Progressive, Allstate, and State Farm, all have insurance available at affordable prices for high risk drivers, ranging from $831 per year (USAA) to $3,803 (Allstate) with an at-fault accident on your record. These are also your best bets for other citations, including DUIs.

Comparison quotes are quick, easy, and free!

California High Risk Auto Insurance

Shopping for car insurance can be a challenge, especially if you need California high risk auto insurance. Even without the high risk factor, car insurance is expensive. But, it is necessary to protect yourself, your property, and others. 

California requires drivers to have a minimum amount of liability coverage to pay for injuries or property damage if you are involved in an accident. If you are looking for the cheapest coverage, then your coverage must include 

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $5,000 property damage liability per accident
Considering that health care and damage expenses can cost significantly more than those minimum liabilities, drivers should find coverage with more realistic totals. However, higher coverage costs more. 

Cost of High Risk Auto Insurance California

Full-coverage California high risk auto insurance can reach costs well over $2500 annually for young drivers and those who have a history of accidents. If you only need minimal coverage, you should be able to find coverage under $1000 annually. 

If you have a DUI, your cost of high risk auto insurance in California can cost over $3500 annually. As you become a more experienced driver and have fewer accidents, your insurance rates drop. 

How to Get Cheap High Risk Auto Insurance California

If you need cheap high risk auto insurance in California, you can shop around for the lowest rates. You might also qualify for California’s low-cost insurance program that helps people who cannot afford high insurance rates. The requirements include having a valid California driver’s license, a car valued under $25,000, and meeting the income requirements

California also has an insurance program for drivers with accidents, DUIs, and other risk factors. The California Automobile Assigned Risk Plan groups high-risk drivers into a pool to reduce their insurance costs.

Comparison quotes are quick, easy, and free!

Texas High Risk Auto Insurance

Insurance companies are well aware that some drives are more prone to car accidents compared to the average person. For those drivers, it can be difficult to find insurance coverage. But there are some options available. For instance, if you have a questionable driving record, you should consider high-risk auto insurance. 

Cost of High Risk Auto Insurance in Texas

The major downside to high risk auto insurance in Texas is that the premiums are much higher than those of standard auto insurance policies. Consider the fact that a policy for someone with a clean driving record will often cost around $130 each month on average. That comes out to around $1,500. 

However, that number indicates the exact average. The cost for Texas  high risk auto insurance will be significantly higher. The exact increase to that cost will depend on the reason why a driver needs high-risk insurance. 

There are several reasons why a driver would need this type of insurance. For instance, they may have been at fault in a past accident. Or worse, they may have been charged with a DUI. 

Generally, high risk auto insurance in Texas can escalate to $2,000 to $3,000 per year. At the higher end of that range, monthly payments come to around $250 per month. 

How to Get Cheap High Risk Auto Insurance in Texas

If you need Texas high risk insurance, it is vital that you find the most affordable policy you can. Often the cheaper policies come from larger insurance companies. Some of the top prospects you should consider at State Farm, Geico, and Progressive. 

However, there is a chance that even those companies will deny coverage to you. Considering it is unlawful to drive in Texas without insurance, you need to find some form of coverage. If no other provider approves you for a policy, getting a government-issued automotive insurance plan from the State of Texas might be your only option. 

Comparison quotes are quick, easy, and free!

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