When is high-risk auto insurance required? (Expert Guide for 2024)
When is high-risk auto insurance required? High-risk car insurance is required for drivers with major violations, repeated accidents, or low credit scores. High-risk car insurance rates are typically 20% higher. High-risk drivers might also need an SR-22 certification after severe traffic infractions.
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Rachael Brennan
Licensed Insurance Agent
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...
Licensed Insurance Agent
UPDATED: Nov 4, 2024
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Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 4, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.
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When is high-risk auto insurance required? High-risk auto insurance applies to drivers with a record of traffic violations, accidents, or issues like poor credit. Insurers often see these drivers as more likely to file claims, leading to higher premiums—often at least 20% above the average rate.
Some drivers, such as those with DUIs or multiple speeding tickets, may even need certifications like SR-22 to maintain their coverage. High-risk policies vary by provider, and rates can differ significantly. Understanding the reasons why you may need high-risk insurance and how to manage its costs is essential for securing the best possible coverage.
We’ll explain why you may need high-risk insurance, how a high-risk pool affects auto insurance rates, and which companies provide affordable high-risk insurance coverage. Keep reading to learn about high-risk auto insurance. Enter your ZIP code in the free quote tool to compare local insurance companies.
- High-risk insurance covers drivers with accidents, violations, or bad credit
- Premiums are typically at least 20% higher for high-risk drivers
- SR-22 certification may be required after serious traffic violations
Car insurance is so expensive for high-risk drivers that it may be required for many reasons. One of the most significant purposes for high-risk insurance is to offset the risk of a driver filing an auto insurance claim.
But what are the specific reasons why you need high-risk auto insurance? Check out the table below to see the characteristics that define a high-risk driver.
High-Risk Driver Factors
| Driving Factors | Non-Driving Factors |
|---|---|
| At-fault claims | Age |
| Speeding tickets | Bad credit |
| Reckless driving | Location |
| Racing | Gaps in coverage |
| DUI | Vehicle use |
| Vehicle type | |
| License points |
Age indicates the driving experience of the insured, but location considers the risk of you filing claims based on the statistics of where you live. Gaps in coverage show how long you’ve been uninsured while owning a car.
Vehicle use is another way of showing how often you drive. Generally, cars don’t get in accidents when they’re not moving. Therefore, the more you drive, the more you’re at risk of an accident.
Although driving factors make sense, it may be confusing to understand why non-driving factors should affect your car insurance policy.
Even vehicle types can determine whether you’re at high risk. Some vehicle types have higher accident frequencies, and some vehicle types generate expensive car insurance claims.
Therefore, your auto insurance company may drive up your rates to balance the risk.
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The Impact of Bad Credit on Auto Insurance Rates
Bad driver car insurance can get worse if they have poor credit. High-risk car insurance companies issue more expensive rates to people with bad credit because it correlates to a high chance of filing claims.
Excellent credit does the opposite. Auto insurance companies correlate excellent and good credit with a low chance of filing a car insurance claim.
Read more:
Cost of Auto Insurance for High-Risk Drivers
Car insurance for bad drivers and high-risk drivers is at least 20% more than average. According to the National Association of Insurance Commissioners (NAIC), full coverage auto insurance is $90 a month on average.
If you consider the minimum high-risk increase, you’ll pay around $108 per month. However, each driver is different. Some high-risk drivers have to pay up to 35% more for auto insurance.
Let’s look at how much you could pay for car insurance as a high-risk driver.
Monthly Auto Insurance Rates by High-Risk Factor
| Summary | Monthly Rates |
|---|---|
| Auto Insurance Rates for 15 Miles or More | $125 |
| Auto Insurance Rates for Drivers in their 20s | $135 |
| Auto Insurance Rates for Business Commuting | $138 |
| Auto Insurance Rates for Luxury Cars | $176 |
| Auto Insurance Rates for Sedans | $188 |
| Auto Insurance Rates for Bad Credit | $237 |
These estimates are not set in stone, and they could be cheaper or more expensive depending on the company that has your auto insurance policy. But don’t give up — you can get affordable insurance for high-risk drivers.
It would help if you looked for high-risk car insurance companies that provide affordable bad driver insurance.
Auto Insurance Companies That Offer High-Risk Insurance
Some car insurance companies provide coverage specifically for high-risk drivers. This doesn’t mean they won’t take drivers with a clean driving record.
So, which companies are best for high-risk drivers or drivers with a bad driving record? Here is a list of high-risk auto insurance companies:
- Assurance America
- Bristol West
- Dairyland
- Falcon
- Gainsco
- Hallmark
- Infinity
- Kemper
- The General
- Safe Auto
These companies may provide high-risk auto insurance much faster than some of the more well-known companies in the United States. If these companies aren’t in your area, try to shop with regional or local car insurance companies.
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Automobile Insurance Costs for High-Risk Drivers at Top Companies
How much is insurance for high-risk drivers? You can obtain affordable high-risk car insurance from the best auto insurance companies in the nation, but the monthly premiums may be significantly higher. Look for the best auto insurance for high-risk drivers to ensure you get the most suitable coverage.
Explore how much you’ll pay for auto insurance with a bad driving record at the best high-risk insurance companies.
Auto Insurance Rates by Driving Record and Company
| Insurance Company | Monthly Rates with a Clean Driving Record | Monthly Rates w/ One Speeding Violation | Monthly Rates w/ One Accident | Monthly Rates w/ One DUI Conviction |
|---|---|---|---|---|
 | $318 | $374.00 | $416.00 | $522.00 |
 | $224 | $252.00 | $310.00 | $361.00 |
 | $288 | $340.00 | $377 | $393.00 |
 | $179 | $220.00 | $266.00 | $406.00 |
 | $398 | $475.00 | $517 | $634.00 |
 | $229 | $259.00 | $283.00 | $379.00 |
 | $283 | $334.00 | $398 | $331.00 |
 | $235 | $266.00 | $283.00 | $303 |
 | $287 | $355.00 | $357 | $478 |
 | $161.00 | $183.00 | $210 | $292.00 |
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Car insurance for a bad driving record is usually more expensive. Accidents and DUIs have the most impact on your driving record, so make sure you ask your auto insurance company about discounts.
Variations in High-Risk Auto Insurance Rates Across States
Yes, they are. Each state has different averages for high-risk car insurance and those rates can decrease when you shop at the cheapest companies in the state.
Fortunately, our research found estimates of the most affordable car insurance companies in each state in America. Let’s examine the results.
Monthly High-Risk Auto Insurance Rates by State and Cheapest Company
| States | Cheapest Auto Insurance Companies | Monthly Rates |
|---|---|---|
| Alabama | Allstate | $91 |
| Alaska | State Farm | $89 |
| Arizona | American Family | $98 |
| Arkansas | Southern Farm Bureau | $83 |
| California | Esurance | $156 |
| Colorado | State Farm | $107 |
| Connecticut | State Farm | $120 |
| Delaware | State Farm | $116 |
| District of Columbia | Erie | $87 |
| Florida | State Farm | $172 |
| Georgia | State Farm | $132 |
| Hawaii | State Farm | $78 |
| Idaho | State Farm | $51 |
| Illinois | State Farm | $89 |
| Indiana | Erie | $62 |
| Iowa | State Farm | $57 |
| Kansas | American Family | $74 |
| Kentucky | State Farm | $80 |
| Louisiana | Southern Farm Bureau | $166 |
| Maine | State Farm | $57 |
| Maryland | Erie | $145 |
| Massachusetts | Geico | $96 |
| Michigan | Nationwide | $334 |
| Minnesota | American Family | $88 |
| Mississippi | Travelers | $95 |
| Missouri | State Farm | $84 |
| Montana | State Farm | $69 |
| Nebraska | State Farm | $72 |
| Nevada | State Farm | $152 |
| New Hampshire | Concord Group | $68 |
| New Jersey | Geico | $126 |
| New Mexico | State Farm | $93 |
| New York | Erie | $225 |
| North Carolina | Nationwide | $115 |
| North Dakota | American Family | $50 |
| Ohio | American Family | $58 |
| Oklahoma | State Farm | $98 |
| Oregon | State Farm | $63 |
| Pennsylvania | State Farm | $77 |
| Rhode Island | State Farm | $96 |
| South Carolina | State Farm | $98 |
| South Dakota | State Farm | $63 |
| Tennessee | State Farm | $77 |
| Texas | Farmers | $96 |
| Utah | Geico | $98 |
| Vermont | State Farm | $67 |
| Virginia | Progressive | $62 |
| Washington | State Farm | $89 |
| West Virginia | Erie | $72 |
| Wisconsin | American Family | $66 |
| Wyoming | State Farm | $68 |
State Farm high-risk insurance is the cheapest overall, followed by American Family. Although these companies are known for their cheap auto insurance for bad drivers, your rates could differ when you get a quote.
Reducing Your Risk Profile to Lower Auto Insurance Rates
You can lower your driving risk by keeping driving incidents to a minimum. If you can go more than six months without an accident or traffic violation, your risk may decrease.
High-risk auto insurance is essential for drivers with violations or poor credit, often raising premiums by 20% or more. It ensures you’re covered and legally compliant after incidents like DUIs or multiple accidents.
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Also, any increase in your credit score could get you more affordable insurance rates. Make sure you report any changes in your credit to your car insurance company.
Read more: How Traffic Violations Increase Car Insurance Rates
The Need for SR-22 Auto Insurance
What is SR-22 insurance? Whether you require an SR-22 hinges on your driving history, with insurance rates typically elevated for individuals with a poor driving record and often necessitating SR-22 certification.
Drivers who have too many accidents or severe traffic violations (DUI, reckless driving, or racing) may require an SR-22 form before their driving privileges are restored.
SR-22 certification is like a promise to your state that says you’ll carry the state minimum car insurance. Your state could suspend or revoke your driver’s license for failing to meet state requirements for auto insurance.
If you’re a high-risk driver in Indiana, you’re required to get SR-50 certification. Meanwhile, Florida and Virginia’s high-risk drivers who commit serious driving offenses need double the minimum requirements through FR-44 certification. (For more information, read our “Cheap FR-44 Insurance“).
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Key Takeaways on High-Risk Auto Insurance
High-risk insurance companies provide affordable high-risk auto insurance. But you’ll need to qualify for auto insurance discounts.
If a car insurance company denies your request for coverage, keep shopping around with other companies.
It’s challenging to get cheap insurance for bad drivers, but it’s not impossible. You’ll have to compare auto insurance with multiple companies until you find a company that provides inexpensive car insurance coverage.
Now that you know more about high-risk auto insurance, you can compare multiple insurance companies in your area by using our free online quote tool below.
Frequently Asked Questions
How to get high-risk car insurance?
You can get high-risk insurance by shopping around with different providers, using online quote tools, or contacting insurance companies that specialize in high-risk policies.
What is considered a high-risk driver?
A high-risk driver is someone with multiple traffic violations, accidents, a DUI conviction, or poor credit, all of which make them more likely to file claims.
What is high-risk insurance?
High-risk insurance is a type of auto coverage designed for drivers who are deemed riskier to insure due to their driving history or other factors.
What makes you a high-risk driver?
A combination of traffic violations, at-fault accidents, DUI convictions, or a low credit score can classify you as a high-risk driver.
Where to get car insurance for high-risk drivers?
You can get car insurance for high-risk drivers from specialized companies or by comparing quotes from standard insurers that offer high-risk policies. To find the best rates, compare multiple insurance companies in your area using our free online quote tool above.
Who has the best car insurance for high-risk drivers in Michigan?
Several insurers offer competitive rates for high-risk drivers in Michigan, including State Farm, Progressive, and GEICO. It’s best to compare quotes to find the right fit.
Who has the cheapest high-risk auto insurance?
Cheap high-risk auto insurance varies by location and individual driving records, but companies like GEICO, Progressive, and The General often offer affordable auto insurance for high-risk drivers.
Who will insure a high-risk driver?
Many national and specialized insurance companies, including Progressive, GEICO, and State Farm, offer car insurance for high-risk drivers.
Who requires high-risk insurance?
Drivers with serious traffic violations, DUI convictions, or multiple accidents typically require high-risk insurance to stay legally compliant.
Who is an at-risk driver?
An at-risk driver is someone whose driving behavior or history increases the likelihood of future accidents or claims, making them more expensive to insure.
Can multiple speeding tickets make me a high-risk driver?
Yes, it can. Too many speeding violations drive up car insurance rates by 15% or more.
Is Geico good for high-risk drivers?
Yes, it is. Geico is one of the cheapest companies in the United States, providing auto insurance for high-risk drivers. You may check our Geico auto insurance review for more details.
How long does high-risk auto insurance last?
High-risk car insurance can last at least three years. It takes a while to be considered a high-risk driver, and it will take some time to lower your risk and begin to save on your auto insurance again. You can explore car insurance discounts to help reduce your premiums during this period.
How long are you considered a high-risk driver?
You are typically considered a high-risk driver for three to five years, depending on your driving record and state laws.
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Rachael Brennan
Licensed Insurance Agent
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.