Getting car insurance is easy. You research different providers, learn about their policies, and determine the best one for you. But what if you need high-risk auto insurance? Is the process still so simple?
Buying high-risk auto insurance isn’t the hardest task ever. In fact, it’s pretty similar to purchasing regular car insurance. You’ll have to take the same steps in both scenarios. However, for high-risk auto insurance, your research process might be a little lengthier than usual.
If you’re a high-risk driver, it’s not easy to find a great provider to insure you. What’s even harder is finding one when you’re shopping on a budget. But if you want the best high-risk auto insurance at a cost-effective rate that makes sense for you, it’s not impossible to find.
What is high-risk auto insurance?
Before you start looking for high-risk auto insurance, it’s essential to know what it means to be a high-risk driver. While the term sounds frightening, it doesn’t have as bad a connotation as you might assume. In fact, it doesn’t directly even mean that you’re a terrible driver.
Insurance companies consider many people as high-risk drivers, and the reason for this varies. You might need high-risk auto insurance in the following scenario:
- Your insurance coverage has lapsed in the past
- You have received speeding tickets or tickets for traffic violations
- You have DUI convictions
- You’re at fault for accidents
- You just got your license
- You’re a driver with poor credit
- You’re elderly
- You own a high-powered or exotic vehicle
The reasons for getting high-risk auto insurance can fall anywhere on a broad spectrum.
You might need it because of a circumstance you can’t avoid, like growing older or getting your license for the first time when you’re 16. Or, you might need high-risk auto insurance because you’ve found yourself in a situation that you could’ve avoided like buying an exotic vehicle.
Either way, the question always comes down to whether or not you’ll ever have an opportunity to get regular car insurance. Will you always be a high-risk driver?
How long are you considered a high-risk driver?
Just because you’re a high-risk driver today doesn’t mean you’ll be one tomorrow. Each U.S. state allows a certain amount of time for driving penalties to stay on your record. And sometimes your auto insurance company will suggest tips to help you decrease the points on your record.
For example, your provider might reward you for attending a defensive driving course or a traffic safety class. You might also reduce the points on your driving record by having a car with more advanced safety features and obeying traffic and parking rules.
Either way, you can encounter ways to strip the label of “high-risk driver,” which is welcome news if you’ve made a few mistakes on the road. However, if you love to buy exotic, high-powered vehicles or drive as an elder, you might not escape the high-risk category. Still, that might be a small price to pay to have your favorite cars or continue driving as a senior.
Who provides high-risk auto insurance?
Regardless of why you’re a high-risk driver, you’re going to need high-risk auto insurance. Some major car insurance companies offer this type of coverage. Geico and Progressive are two great examples.
But as with any major insurance company, you’re going to come across steep prices. Big providers like to use industry algorithms to determine their rates, but these algorithms are exploitative and usually increase your policy’s price.
What’s worse is that nonstandard auto insurance companies that are willing to cover the riskiest drivers also charge higher rates. These nonstandard businesses know it’s hard to find high-risk auto insurance at standard providers, and they take advantage of this information by demanding high prices.
How much is high-risk auto insurance?
The cost of your high-risk auto insurance will depend on various factors, including your location, driving history, gender, age, and the type of coverage that you want. However, the national average for high-risk auto insurance is $1,427 per year. That’s about $118 per month.
If you want full coverage, that price can double, especially once major and nonstandard providers consider other factors. But if you want minimum coverage, that price will decrease, but not significantly enough to brag about it.
NerdWallet found the average rate for high-risk auto insurance if you want full coverage and minimum coverage. The media outlet also examined why you might be a high-risk driver to better predict the price you’d pay. Here’s what their research suggests.
The average rate for high-risk auto insurance for a 25-year-old with poor credit is the following:
- Full coverage: $2,894 per year
- Minimum coverage: $1,195 per year
The average rate for high-risk auto insurance for a 40-year-old with poor credit is the following:
- Full coverage: $2,506 per year
- Minimum coverage: $1,078 per year
The average rate for high-risk auto insurance for a 25-year-old with an at-fault accident is the following:
- Full coverage: $2,451 per year
- Minimum coverage: $1,008 per year
The average rate for high-risk auto insurance for a 40-year-old with an at-fault accident is the following:
- Full coverage: $2,146 per year
- Minimum coverage: $910 per year
The average rate for high-risk auto insurance for a 25-year-old with a DUI is the following:
- Full coverage: $2,911 per year
- Minimum coverage: $1,204 per year
The average rate for high-risk auto insurance for a 40-year-old with a DUI is the following:
- Full coverage: $2,531 per year
- Minimum coverage: $1,079 per year
Regardless of the situation, high-risk auto insurance is typically expensive, making it imperative to find the best rate possible. And while options are few, you can find great coverage for a reasonable price.
Who offers the best high-risk auto insurance?
If you want high-risk auto insurance at a fair rate, you shouldn’t use a major provider or a nonstandard agency.
For the best coverage, use Barry Risk Management, Inc. Our parent company is Barry Risk Management, a business that specializes in helping people find and purchase the proper coverage for all of their everyday essentials.
With their help, Barry Risk Management, Inc. finds the best rates and coverage for high-risk drivers. Instead of relying on manipulative industry algorithms to find a policy, Barry Risk Management, Inc. manually reviews yours needs to match them with the ideal coverage.
You don’t have to worry about paying ridiculously high prices or spend all of your shopping around for a fair deal. With Barry Risk Management, Inc., you can get high-risk auto insurance at a great rate in no time.
If you need high-risk auto insurance, contact Barry Risk Management, Inc. today to discover a policy and auto insurance quote that works for you!