What is high-risk auto insurance?

Overview: High-risk auto insurance is a type of coverage available to drivers who have been labeled as high-risk by insurance companies based on their driving history. This classification may affect insurance costs and options, but coverage may be available. This article explores what triggers the label, what to expect and answers common questions about obtaining and maintaining this type of insurance.

If your insurance company has classified you as a high-risk driver, it doesn’t mean you’re without options. High-risk auto insurance, also called non-standard car insurance, is specifically designed for drivers in this situation. While these policies typically carry higher premiums than standard coverage, they serve an important purpose: they help make it possible for drivers with more complex driving histories to obtain the insurance they need to legally and safely drive.

What does it mean to be considered a high-risk driver?

Insurance companies analyze driving patterns and data, and if yours suggests higher risk, they may classify you as such. Being classified as a high-risk driver often means you may encounter:

• Adjusted premium rates or different discount options — increased insurance costs with discount availability that differs from standard policies.
• Different payment structures — requirements such as larger initial payments or alternative payment plans.
• Non-standard coverage — insurance companies and programs designed to serve drivers in this classification. Depending on the state, coverage limits and options may be limited.
• State documentation filings — in some cases, you may be required to file proof of financial responsibility with your state, such as an SR-22 form.

Who may need high-risk auto insurance?

You might be classified as a high-risk driver if any of the following apply to your driving history:

• You’ve been involved in collisions where you’re responsible for the damage.
• You’ve received several citations over time.
• You’ve operated a vehicle under the influence of alcohol or drugs.
• You’ve exhibited driving behavior that posed a risk to yourself or others.
• There’s been a period when your driving privileges were temporarily or permanently removed.

What can you do if you’re considered a high-risk driver?

Even if you are considered a high-risk driver for auto insurance now, there are some steps you may consider taking that may help lower the premiums insurance companies can offer you. 

• Get a free online auto insurance quote — see a realistic picture of what your costs might be based on your driving record.
• Take a defensive driving course — check with an agent for approved courses.
• Trade in your car — select a model with a better safety record or safety features.
• Follow all traffic laws — going three years without a ticket may result in a decrease in your premium.
• Drive defensively — course discounts may be available if you can avoid an accident for three years. 

How long are you considered a high-risk driver?

How long you stay classified as high-risk depends on what caused it. Most accidents and traffic tickets stop affecting your rates after three to five years. DUI convictions can stay on your record longer and impact your rates for a longer period, depending on your state. Once these incidents fall off your driving record, consider getting new quotes from your insurance company to see if your rates improve.

Additional answers to common questions

Here are some answers that may help you further your understanding of high-risk insurance.

• What is an SR-22 and why is it needed? It’s a certificate of financial responsibility that proves you have insurance coverage. It’s required by the state to document that you’re insured and able to drive following specific traffic violations, including DUIs and multiple at-fault accidents.
• What do I do if an insurance company will not insure a high-risk driver? Insurance companies that specialize in high-risk are specifically designed to work with drivers who need alternative options. Reaching out to these specialized insurers may help you find coverage.
• Is high-risk insurance very expensive? High-risk insurance typically costs more than standard policies. However, the amount you’ll pay may vary by your individual situation, state and insurance company. Consider getting quotes from several insurers to understand your options and pricing.
• What information do I need to fill out an accurate quote? You’ll need your driver’s license information, complete driving history, vehicle details, desired coverage limits and your current insurance status if applicable.
• Can I switch car insurance companies while considered a high-risk driver? Yes, you can switch car insurance companies at any time. However, you may face higher premiums with any insurer while you’re classified as high-risk.

Rewriting your insurance story

Being classified as a high-risk driver may come with higher costs and different coverage options, but it doesn’t have to be a permanent label. The classification typically lasts three to five years, and what happens during that time may influence your future rates. Understanding what led to the classification and exploring available pathways forward may help you make informed decisions about your coverage. This period, while perhaps challenging, may offer you an opportunity to work toward a better insurance situation.

Ready to find high-risk auto insurance? Gainsco offers specialized coverage for drivers who need it in some states.