Do I need a high-risk auto insurance company?

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Things to Remember...
  • High-risk auto insurance is for new drivers and people who have a history of risky driving
  • Non-standard auto insurance companies offer policies for new drivers
  • There is also an insurance market just for the non-standard customer. The rates will still be very high.


If you have had several automobile accidents that were your fault, are a DUI offender or are an inexperienced driver such as a teenager, you may be wondering if you need high-risk auto insurance.

High-risk auto insurance is for new drivers and people who have a history of risky driving.

An auto insurance company considers these drivers more expensive to insure because the likelihood of them filing a claim is greater than for ordinary drivers.

There are three basic types of drivers that insurance companies are usually willing to insure, and each type can use a comparison site to find the lowest cost for auto insurance coverage.

  • The preferred customer with a good driving record
  • The standard customer who is the average vehicle owner
  • The non-standard customer who is the greatest risk for the insurance company

The type of drivers that need high-risk auto insurance coverage are nonstandard customers. are If a motorist has a long history of accidents and claims, they may be refused coverage completely.

Someone in this situation should use our free comparison tool above to get the best rates for your area!

New Drivers

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New drivers are happy to gain independence by being able to drive. Non-standard auto insurance companies offer policies for new drivers.

Studies show that teenage girls, both young and old are the most prone to distracted driving than any other age group. Distracted driving includes using electronic devices and cell phones while driving.

Specific driver profiles tend to be designated as high risks.

For example, teenage boys tend to be distracted by turning to look at passengers or by talking to people outside the car.

In some states, this infraction is not treated very harshly and does not go on the driver’s record. While other states, it is considered as serious as a moving violation and does go on the record.

Even if it goes on your record, different insurance companies will weigh it differently when it comes to the cost of an insurance policy.

This is why high-risk insurance costs more. There may be a specific new driver auto insurance company that is best for your needs.

If your record shows that you are a risky driver to insure, it would be to your advantage to search insurance comparison sites to find the cheapest non-standard auto insurance available.

The Main High-Risk Factors

  • Men are considered higher risk drivers than women in general
  • Teenagers are high risk because they don’t have a driving record
  • Three or more moving violations within a one-year period
  • Living in a high-risk area where damage to your auto is very likely
  • Irregular insurance coverage with periods of time you were not covered
  • A DUI or DWI on your record
  • Several auto accidents whether they are your fault or not
  • A poor credit rating added to any of the above will make an insurance company consider you high risk

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The Most Serious High-Risk Factors

Some factors that contribute to high-risk auto insurance are more serious than others.

If you have just one of the following on your record in a 12 month period, you will be considered high risk by almost any insurance company.

  • Numerous moving violations convey the possibility of an automobile accident
  • A DUI conviction may cost you your license as well as make you a high-risk customer
  • Being in a hit and run accident
  • Negligent vehicular injury
  • Driving while under the influence of drugs
  • Reckless driving
  • Suspended license
  • Auto insurance canceled
  • Medical conditions that could affect your ability to drive
  • People over 70 years old

An SR-22 Insurance Filing

An SR-22 document is given by an auto insurance company to the state to verify that you have the minimum liability insurance for operating a car.

Your state will notify you if you are required to maintain this filing. This document is usually required if the driver has been in an accident without auto insurance or has excessive driving violations.

Depending on the severity of the offense this type of insurance can be required for three years.

If, for any reason, you cancel your insurance policy, the insurance company is required to inform the state that you no longer have insurance.

Each insurance company has different criteria for deciding who is a high risk driver.

This is another good reason to consult a comparison site to find the cheapest coverage for your particular situation.

What is a high-risk auto insurance company?

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Each state has an Automobile Insurance Assigned Risk Plan. Under this plan, a high-risk driver may not be turned down for insurance.

The premiums are extremely high, sometimes double or even triple the national average for the required liability insurance, but a high-risk driver is guaranteed coverage.

There is also an insurance market just for the non-standard customer.

The rates will still be very high, but they will be lower than the assigned risk plan from the state.

Non-standard policies are offered from some major carriers. They will assess the risk and may or may not offer a policy.

People who need a high-risk auto insurance company may eventually reduce their insurance premiums after three years.

If they have a good driving record during this time, the previous moving violations and accident claims will be removed from their record, and they can move to the standard insurance group.

No matter what type of driver you are, our free car insurance tool can give you great rates when you enter your zip code.

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