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Why is Car Insurance for High Risk Drivers So Expensive? The Trouble Finding Insurance Carriers to Insure You. You Will Pay More, but Follow the Tips and Reduce the Costly Burden!

It seems like everywhere you look, there’s an advertisement for cheap car insurance. As a high risk driver, though, you don’t qualify for those cheap rates. In fact, you’re probably paying at least 2-3 times more than friends and family that have standard auto insurance. As you process your auto insurance payment each month, you most likely ask this same question over and over.

Top Reasons You’re Considered a High Risk Driver

RankConsidered High Risk Driver
1You’re young and/or inexperienced driver
2You’ve been involved in more than one accident
3You’ve have multiple driving infractions on your record
4You’ve been convicted of a DUI
5Driving without a license
6Any traffic violation that results in a fatality
7Reckless driving
8Excessive speeding

Why is car insurance for high risk drivers so expensive?

The reason is a lot less complicated than you probably thought. Despite all the formulas and factors that go into determining the rates for standard auto insurance policies, the reason why you’re paying more is actually quite simple: high risk drivers pose a bigger risk for auto insurance providers.

Top high risk driver insurance companies and comparing the before and after the driving infraction with cost.

Auto insurance providers believe that high risk drivers are more likely to be involved in an accident that will result in a claim being filed. In other words, they are more likely to cost them money than somebody with standard insurance.

Why am I considered a high risk driver?

There aren’t many people that have perfect driving records. A less than perfect driving record, though, does not mean that you’re a high risk driver.

If you’re insurance provider has labeled you a high risk driver, it is likely due to one of the following factors:

You’re young and/or inexperienced driver:

If you’re a young or inexperienced driver, insurance providers will typically classify you as being high risk. They consider you to be more prone to accidents due to your lack of experience, particularly with inclement weather and less-than-ideal road conditions.

Chart showing the affects of adding a young or new driver to a policy. In this instance, it more than doubles the premium.

Note: A young or new driver will have extremely high insurance premiums. The best option for them is to take safety driver courses to attempt to offset some of the high cost.

Studies show that adolescent males that lack experience behind the wheel are more likely to speed and put themselves in harm’s way when driving. If you just started driving or you’re under 21, then that may very well be the reason why you’re considered a high risk driver.

You’ve been involved in more than one accident:

Every time you file a claim after an accident, you cost your insurance provider money. If you get into one too many accidents, there’s a good chance that you’ll be considered a high risk driver by your insurance company.

You’ve got multiple driving infractions on your record:

If you rack up driving infractions like it’s your job, then insurance companies are going to view you as being almost too risky to insure.

Moving ViolationAuto Insurance Rate Impact
Speeding >10 MPHModerate
Speeding <10 MPHLow
Reckless DrivingSevere
Running a Red LightModerate / Severe
Failure to Yield / Stop Moderate / Severe
Improper PassingModerate
Illegal U-TurnLow / Moderate
Wrong WayModerate
Fleeing from PoliceSevere
Failure to Use Child RestraintModerate / Severe
DUI / DWISevere

Whether you constantly get caught driving at high speeds or performing some kind of illegal maneuvers, your insurance company is most likely banking of the fact that those actions will lead to an accident. It’s for that reason that they’ll consider you a high risk driver.

You’ve been convicted of a DUI

There are few guarantees in life, but you can be certain that you’ll be labeled a high risk driver if you’ve been convicted of a DUI offense. Check out the table below:

Insurance CompanyWithout DUI**With DUI***
Allstate$1,646$1,876
GEICO$1,721$2,451
USAA$1,744$2,489
Farmers$1,876$2,539
State Farm$2,112$2,943
Nationwide$2,348$2,987
National Avg.$2,287$3,364

Even after your first DUI, car insurance companies will force you to take their high risk driver (SR-22 & high premiums) car insurance.

By the way, SR-22 is not insurance, but a document submitted to the state and insurance companies you have committed a serious moving violation.

To learn more about a SR-22 click here.

Helpful DUI / SR-22 Articles
Cheap Insurance w/ a DUI
Changing Auto Insurance to Save
Ignition Interlock Devices
Top DUI Auto Insurance Companies

How long will I be considered a high risk driver?

Typically, it will be for three (3) years. Every auto insurance provider handles car insurance for high risk drivers differently. If you are considered to be a high risk driver, you can count on maintaining that label for a certain period of time.

Check out the table below and the variance in insurance premiums:

RankAuto Insurance CompanyAverage Annual Rate
1USAA$789
2GEICO$812
3State Farm$964
4Farmers$1005
5Allstate$1,237
6Mercury$1,283
7Safe Auto$1,481
8MetLife$1,623

The amount of time, though, varies both depending on who is insuring you, and the reason you have high risk insurance to begin with.

Graph showing the cost of an insurance premium before a driving infraction, during three years, and then after.

Note: The typical amount time for high insurance rates for a high risk driver is three years as illustrated by the graph. In this instance the driver’s premium went from $750 to nearly $1,400 per year. Then after three years the rates went back to a lower rate.

Some Insurance Carriers will Check Your Driver History for Ten Years

If you have high risk insurance due to your inexperience behind the wheel, you probably will be able to shed that label after a few years with a clean driving record.

On the other hand, if you have a DUI offense or multiple accidents on your record, then you can count on being considered a high risk driver for at least 5-7 years.

What can I do to reduce my rates?

Even as a high risk driver, there are still ways to reduce your monthly premium. You’ll still pay more than those with standard auto insurance, but you can definitely close the gap in price.

One of the best things you can do to decrease your rates is to prove to your insurance provider than you’re not the risk they thought you were.

By maintaining a clean driving record for an extended period of time, you’ll show them that you’ve put your reckless driving past behind you.

Top Ways to Lower Your Auto Insurance Bill

RankCoverage Change
1CLEAN DRIVING RECORD
2ASK FOR HIGHER DEDUCTIBLES
3REDUCE COVERAGE ON OLDER CARS
4BUNDLE INSURANCE
5GOOD CREDIT
6LOW MILEAGE DISCOUNTS
7OTHER INSURANCE DISCOUNTS
8SHOP AROUND
9BEFORE BUYING COMPARE INSURANCE COSTS
10GROUP PLAN DISCOUNTS

Depending on your provider, you’ll probably qualify for a good or safe driver discount that could save you as much as ten percent off your bill.

The Benefits of Taking a Defensive Driver Course Your Attempt to Gain Some Traction Against High Insurance Costs

In addition, you can save another five to ten percent just by taking a Defensive Driving class. In the eyes of your insurance provider, a Defensive Driving course will help you improve your skills as a driver. You’ll be less prone to accidents, and less likely to commit further driving infractions in the future.

If you’re a student, you may also qualify for a student discount. Of course, insurance companies aren’t going to give discounts to every student. Rather, they offer discounts only to those that meet certain grade requirements. If you’re at least a B student, you should call your insurance provider to see if you qualify for a special rate.

The Power of Switching Insurance Carriers and Shopping Around

Lastly, you may be able to reduce your rate by switching providers. Not all insurance providers offer the same rates.

Check out the table below:

Auto Insurance CompanyFirst Insurance QuoteSecond Insurance Quote
GEICO$965$1,013
Allstate$989$963
Progressive$1,009$1,104
Farmers$892$1,003
USAA$914$996
State Farm$1,231$1,165
Travelers$1,468$1,562

It is best to compare as many car insurance quotes as possible if you are in the market attempting to lower your rates. Most companies will offer discounted rates, even to high risk drivers, to attract new customers.

Final Thoughts

Whether you were convicted of a DUI offense, you’re young and inexperienced, or you’ve been involved in one accident too many, you’re stuck with car insurance for high risk drivers.

While the high risk driver label has caused your auto insurance bill to reach an almost un-affordable level, it is certainly possible to reduce your monthly bill.

By making the right decisions and comparing rates from various companies, you’ll wind up paying less than you thought possible with high risk driver car insurance.

Greg Fowler
I love to network, travel, and spend time with my children. When I am not doing that I am working on AutoInsureSavings or other websites. If I am working, the best way to reach me is via my Google+ Profile.

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