6 Ways to Get Cheap High Risk Auto Insurance

If insurers classify you as a high-risk driver, you may be in for a tough ride trying to find standard coverage for your vehicle. While nobody wants to be labeled as a risk to insure, the good news is that there are still plenty of ways to get affordable auto insurance.

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Insurance companies may declare someone a high-risk driver for various reasons and, sometimes, it can happen to people who don’t even have a poor driving record. However, if you follow these tips, you won’t have to go broke buying high-risk car insurance.

High Risk Drivers

Most people who are labeled high-risk drivers by insurance companies have bad driving records. Typically, they are drivers who have caused a few accidents or have received several traffic tickets. Often, it is a combination of several factors.

Drivers who have been found responsible for causing accidents have also cost insurance companies a lot of money. As a result, a provider may decide that the person is too risky to insure at the standard rates most people pay.

Of course, rates vary by state. If a driver is more likely to cause costly damage, then a company needs more money from them to help cover the potential losses.

You could also be declared a high-risk driver for demonstrating dangerous behavior behind the wheel. Even if you have never caused an accident, but have racked up several traffic violations, a provider may conclude you’re a high risk to insure.

Some people are declared high-risk drivers even though they have an acceptable driving record. For example, a provider may decide that a senior driver over age 70 is a high risk to insure, depending on their health and circumstances.

Drivers under age 20 are also more likely to be declared a high risk due to their inexperience behind the wheel.

People with very poor credit ratings could also be labeled high-risk drivers. This is particularly likely if they’ve had their car insurance canceled due to non-payment.

Although people with poor credit scores can be great drivers, if a provider is worried about not getting paid for their services, they may not offer standard rates.

Or, if you live in a neighborhood with a lot of crime, and your car’s been broken into several times already, you could be declared a high risk to insure.

Some insurance companies may also be reluctant to offer standard rates for extremely rare and expensive cars. Cars like this are more likely to be stolen and can costs thousands of dollars to repair. Of course, there are alternatives to buying an expensive car.

Filing an SR-22 Form

People who have been convicted of serious driving offenses are not only likely to be declared high-risk drivers, but they also may need an SR-22 form to buy insurance. People who have had their driver’s license suspended may also require one. This document verifies that a driver has paid for car insurance and that they have the coverage they are legally required to have.

Many insurance companies process SR-22 filings and they will notify authorities if a driver’s SR-22 expires. You can find out more about SR-22 laws in your region by contacting your local state department. For example, in Tennessee, the Department of Safety & Homeland Security oversees the regulations. In Alaska, it’s the Department of Administration’s Division of Motor Vehicles.

Not every state requires the form to be filed and, in some regions, they are called SR-21s.

High Risk or Non-Standard Insurance

If an insurance provider classifies someone as a high-risk driver, typically, other companies will do the same. This means that the driver is no longer eligible for standard insurance rates that most people get. As a result, many companies refer to high-risk auto insurance as non-standard.

Although some major providers offer non-standard car insurance, others do not. There are also companies that specialize in selling non-standard insurance. Some state governments oversee insurance programs for high-risk drivers so that they can insure their car.

For example, Indiana’s Department of Insurance manages a program that shares responsibility among motorists. It requires every provider to cover a percentage of the state’s high-risk drivers. Other states, like California, oversee programs that make sure residents can purchase insurance that’s within their financial means.

Anyone who is licensed to drive can buy coverage for his or her vehicle. However, the challenge may be finding non-standard insurance prices that are comparable to the regular rates most people pay. By following these tips, fortunately, you will improve your chances of finding cheap high-risk coverage.

Improve Your Driving Record

If you have been labeled a high-risk driver because of your driving record, taking steps to improve it is extremely important. Follow the speed limit and drive cautiously.

By avoiding further accidents or speeding tickets, your driving record eventually will improve and your rates should come down. Causing another accident or receiving more traffic violations will only worsen your predicament.

Check with your local government to make sure that any outstanding traffic fines and tickets have been paid. You should also inquire as to whether you can have older violations removed from your record. The fewer incidents that you have on your record, the better it is.

You can also improve your driving profile by taking driver’s lessons.

Many insurance companies offer discounts to people who have completed driving courses. There are also lessons that are designed for older, more experienced drivers. These classes serve as a refresher for mature drivers and also educate them about new regulations and technology.

Websites like U.S. Driving Lessons provide a listing of available courses throughout the country.

Drive a Safe Car

Insurance companies offer lower rates to people who drive safe cars. Vehicles that protect their passengers well aren’t as likely to be involved in accidents that cause thousands of dollars in medical bills. In fact, cars with modern safety features are less likely to be involved in accidents. The lower the risk of damage from a crash, the lower your premium will be.

In addition, if you are a high-risk driver who owns a vehicle that is capable of dangerously high speeds, a provider will likely charge you more.

For example, if you’ve already been involved in several accidents and continue to drive a fast sports car, be prepared to pay a lot for your insurance.

You can find out which vehicles have received favorable safety ratings through organizations like the Insurance Institute for Highway Safety.

Drive an Inexpensive Vehicle

Driving an inexpensive car is another way to lower your non-standard insurance rates. Regardless of whether someone is a good driver, the reality is that expensive cars cost much more to repair.

Providers believe high-risk drivers are more likely to file insurance claims, so, if you drive a valuable car, they likely will charge you more.

In addition, thieves target expensive and luxury cars more often.

By driving a less valuable car that doesn’t stand out, you’ll pay less to insure it.

Choose Your Coverage Wisely

Having a good amount of insurance is an effective way to protect yourself from costly damage; however, you may not need as much coverage as you think. The more insurance you have, the higher your rates will be.

Drivers should carry plenty of liability insurance, which helps cover damage to other people and property in a crash you cause. This is particularly true for people who have been found responsible for causing several accidents.

However, if you drive an older or cheap car, you may not need a lot of collision or comprehensive insurance. Collision insurance pays for the repairs your car needs after you cause an accident.

Comprehensive coverage helps pay for damage your vehicle receives from a non-motorist. For example, if your car is vandalized while it is parked, comprehensive insurance will cover the repairs.

The minimum requirements for non-standard insurance vary from state to state. You can learn more about what they are by asking your provider or state government.

Raise Your Deductible

You can also lower the rates on your high-risk insurance by agreeing to pay a higher deductible. The deductible is the amount of cash you are required to pay toward any damage. If your deductible is $700, then you are required to pay that figure toward an insurance claim and your provider pays the rest. The larger your deductible is, the less a provider has to pay out.

Of course, you should only do this if you have the money to cover the deductible. For people with low incomes and minimal savings, this may not be an option.

Shop Around

Finally, anytime you’re looking for insurance, standard or not, you can save money by shopping around. Just like any other industry, insurance companies try to attract business by offering great products and cheap prices.

If you find a good price, check with the company’s competitors to see if they will beat it.

Surfing websites that specialize in comparing car insurance rates is a great way to shop around. After you answer a couple of questions about your vehicle and driving habits, these sites send you quotes from all the major providers. Take a look, and decide which one’s the best fit for you!

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