High-Risk Auto Insurance
High-risk auto insurance coverage is for drivers their insurance provider deems more of a financial risk than the average driver.
It does not mean they are necessarily bad drivers; instead, they are more expensive to insure due to their driving record. Insurance Navy is known for finding car insurance for drivers who have had violations ranging from speeding tickets, DUI convictions, reckless driving, and at-fault accidents.
Getting car insurance coverage as a high-risk driver can be difficult, but it isn’t impossible. Insurance Navy specializes in providing our customers affordable high-risk auto insurance.
How Much Does High-Risk Auto Insurance Actually Cost?
High-risk drivers here in Illinois are looking at an annual price tag of between $2,800 and $4,500 for full coverage. While drivers with clean records pay about $1,400 a year. Meanwhile in Texas, expect to shell out around $3,200 to $5,100 a year for high-risk coverage.
DUI convictions tend to send premiums soaring. A first-offense DUI could add $1,500 to $2,200 a year to your policy premiums for the next 3-5 years, depending on the state you live in. At-fault accidents will add on another $600 to $1,200 annually. If you've managed to rack up 3 or more speeding tickets in one year, it's not uncommon to see your rates go up by $400 to $800.
Insurance Navy works with a vast network of non-standard insurance carriers like Bristol West, Dairyland, National General and The General. We compare rates for you and find customers' policies 20-40% lower than what drivers usually get quoted when they've had a DUI or need an SR-22 filed.
Who is considered a high-risk driver?
Auto insurance companies typically consider the following factors listed below.
Violations that Will Put You in the High-Risk Pool
There are a few single violations that'll get you automatically classified as a high-risk driver - a DUI/DWI conviction, reckless driving, a hit-and-run, driving with a suspended license, or vehicular manslaughter. These will require you to file an SR-22 in Illinois, Texas, or Indiana.
But you can also be bumped into the high-risk pool if you get a bunch of tickets in a short space of time - 3 or more speeding tickets in 18 months, 2 or more at-fault accidents in 3 years, or 6 or more points on your driving record. In Illinois, 3 or more moving violations in 12 months will trigger a review by the Secretary of State.
Young Driver Surcharges
Younger drivers tend to pay a lot more than older drivers. If you're under 25, you can expect to pay 50-100% extra for the same coverage that a driver aged 30-65 would pay.
For example, in Illinois a 19-year-old male will typically pay $4,200 a year for full coverage, whereas a 35-year-old with the same record will pay only $1,800. If you add a teenager to your policy, that will cost you around $1,200-$2,400 per year.
If your teenager has a good grade point average (3.0 or higher), you might be able to save off 10-15% with a good student discount.
Credit Based Insurance Scores
Most insurance carriers use credit-based insurance scores - the ones from LexisNexis or TransUnion - to help set your rates. If your score falls below 500, you're likely to get slugged with premium increases of 40-70%.
Interestingly though, California, Hawaii, Massachusetts, and Michigan have all banned the use of credit scores for auto insurance. Illinois and Texas allow it, though - and if you're working on rebuilding your credit, Insurance Navy can help you out with carriers that don't weigh credit as heavily in their underwriting. Clearcover and Kemper are two examples.
How to Lower Your High Risk Insurance Cost
You can find more affordable rates by paying attention to the following factors listed below.
Taking a Defensive Driving Course Can Help
If you've got a few points on your license, taking a state-approved defensive driving course might be a good move. In Illinois, the National Safety Council's DDC course and AARP's Smart Driver will get you some points knocked off. Completing a 4-hour course will typically remove up to 2 points from your Secretary of State record. Texas has its own list of approved providers - Comedy Driving, IDriveSafely and Aceable are a few examples.
Most carriers will offer you a 5-15% discount for completing the course, and Bristol West, Dairyland and Progressive will all accept certificates from state-approved online courses. The discounts will usually last for 3 years, though - after that you'll need to renew the course.
Get a New Quote After Improving Your Credit
Insurance credit scores will typically update when carriers pull a new report - usually at renewal. If your FICO score has jumped by 50+ points, give Insurance Navy a call before your renewal date and ask them to get you quotes from carriers that will take your fresh credit data into account.
A 100-point jump in your credit score can be worth 15-25% off your premiums with carriers like National General and Kemper. Just keep those credit utilization levels under 30% and make sure to dispute any errors on your Equifax, Experian or TransUnion reports before your policy comes up for renewal.