High Risk Auto Insurance
Having a clean driving record for three consecutive years is one of the best ways to get the cheapest auto insurance policy possible. Tickets and accidents are one of the key factors auto insurance companies look at when they set their prices. The reason why they look at tickets so hard is they feel that a driver with tickets on their record can forecast their future driving habits and make them more of a risk of having an accident. The two tickets that are the most charged for by auto insurance carriers are a DUI and reckless driving tickets. Some insurance companies charge between 4 to 6 points which can cause your rates to do up around 30% in most cases.
As far as what accidents do to your driving record, it definitely causes your auto insurance rates to increase. Most insurance companies will charge 3 to 4 points on your policy which usually equates to a 25%-30% increase in your monthly rate. Most auto insurance companies do not charge you for a claim you turn in when the accident is not your fault. For instance, a driver rear ends you with no insurance. You will turn this claim into your insurance company and they will pay the claim minus your deductible without raising your monthly rates (as long as when the claims dept does their investigation and confirms you were not at fault).
Collision claims are the most common type of at fault accidents that auto insurance companies charge for. Comprehensive claims are usually not charged for by auto insurance companies. Comprehensive claims are when a non-collision claim is turned in. Excluding one scenario, when you hit a deer, it is considered a comprehensive claim even though its technically a collision accident. So, the insurance company should not raise your rates after this type of claim is turned in.
Understanding High risk auto insurance
High risk auto insurance is a term insurance companies use to categorize a driver who has multiple tickets and accidents and or no insurance history. Here are some characteristics that could classify a driver in the high risk category:
- No previous insurance history
- Multiple tickets on your driving record
- Multiple claims on your record
- Having a suspended driver's license
- Having and ID only or no driver's license at all
High risk auto insurance is not a type of insurance coverage or policy. It is rather a term to describe the driver. It means you have a history of tickets or accidents. Not all auto insurance companies are able to cover these high risk drivers. No matter where you purchase auto insurance your rates will always be higher if you are a high risk driver. We have found a few auto insurance companies that provide affordable auto insurance for high risk auto insurance:
- Save Money Car Insurance
- Safe Auto
- The General
Another term used for auto insurance companies who specialize in insurance coverage for high risk drivers is a nonstandard auto insurance company. The larger national insurance carries tend to steer away from writing this kind of business. This is more of a niche product for smaller local companies. No matter what auto insurance company you choose after you have an accident in most all cases your auto insurance rates will go up. Unless you have a “vanishing deductible” on your policy. This is an endorsement more and more auto insurance companies are implementing where they reward customers who have been with them for a long period of time with a lower deductible each year. So, this helps the consumer because if they are in an accident this will mean less money out of their pockets.
How to find cheap auto insurance after a DUI
A ticket given for a DUI is the most charged for as far as higher premiums for auto insurance companies. This is a citation given do a driver who has consumed over the legal limit of alcohol and caught driving a vehicle. On average more than 10,000 people a year die in a DUI related accident. These kinds of claims are very costly for auto insurance companies, and is why they raise their premiums so much on drivers with this ticket on their record. On average your rates can go up as much as $79 monthly, which is a large amount.
Like we mentioned above some insurance companies can charge up to 6 points just for this one ticket. Compared to a speeding ticket of only 1 pt surcharge, that is 6 times the surcharge of a speeding ticket. So, we have done some research and found some auto insurance companies who offer affordable auto insurance after a DUI and here are a few we found:
- Save Money Car Insurance
- The General
- Safe Auto
It is important to remember just because you have a DUI on your record doesn’t mean you cant still get affordable auto insurance. It just means you need to get quotes from the right auto insurance companies. And the ones we gave you above should get you off to a good start.
Some non-driving factors that can classify you as a high-risk driver
There are other factors besides tickets and accidents that can classify you as a high risk driver. Here are a few of these factors to watch out for:
- Bad Credit
- No insurance history
- Vehicle usage
Just because you may be in one of these categories doesn’t mean you can’t find cheap auto insurance. You can reference the auto insurance companies above to help you find lower auto insurance prices. The more quotes you get the better off you usually are as far as finding the cheapest auto insurance possible.
Benefits of keeping continuous insurance
One key thing we have found to get you out of this high risk driver segment is to keep continuous auto insurance for at least six months. The more gaps in coverage you have the more money you will pay in the end. This is why we always encourage customers to set their monthly payments up on auto pay so their policy won’t lapse. Many auto insurance companies reward drivers that keep their insurance continuous with no lapses with up to 30% worth of discounts. And some companies would not consider you high risk anymore once you keep you auto insurance continuous for a period of time.
How your age correlates to auto insurance rates
As far as age is concerned this is obviously something you can't control but there are things you can do to keep your auto insurance cheap when you are young. Auto insurance data has suggested that drivers from the ages of 16-24 are among the highest risk to auto insurance companies. This is partly due to their lack of driving experience and maturity behind the wheel.
Here are a few auto insurance companies we found that offer affordable auto insurance for drivers from 16-24:
- Save Money Car Insurance
- Safe Auto
How vehicle usage affects auto insurance
The way in which you use your automobile can affect how much you pay for your auto insurance. If you use your car for Rideshare, deliver, transporting people, or commercial purposes this can cause you to pay up to 40% more with a lot of auto insurance carriers and could even cause them to not offer you coverage at all. The ridesharing and delivery industry has exploded in recent years and auto insurance companies are trying to catch up. We have done some research and found the top auto insurance companies who offer coverage for uber and lyft are Save Money Car Insurance and Progressive.
If you work in the delivery business like for Instacart, post mates, and pizza delivery we have found Save Money Car Insurance is company that offers affordable auto insurance rates for you. If you are an owner of a business and have employees doing deliveries for your companies it is best to take out a commercial auto policy so they can be covered the right way. Many people just add their company vehicles on to their personal auto policies to save money. But they really regret doing this when they
have to turn in a claim because most auto insurance companies will deny this claim due to material misrepresentation on their application.
Most auto insurance companies do not write someone who transport people in their vehicle related to their job. This causes great risk for the insurance company in case of an accident and the driver has an accident carrying three other people in the car that have severe injuries, well that adds up fast for the insurance company. We were not able to find an auto insurance company with good auto insurance rates who allow this type of situation.
Auto Insurance companies feel that drivers who use their vehicle in their occupation present a higher risk also due to being on the road so much. We all know the more we drive the greater likelihood we are to get involved in a traffic accident. So, before you take a job that requires you to use your automobile to drive in day-to-day operations be sure to call your auto insurance company first to make sure they offer that coverage and how much it will cost.
How your vehicle type affects auto insurance rates
What type of vehicle you drive can also put you in a high-risk category. If you drive a high-performance vehicle this can substantially raise your auto insurance prices. Sports cars that are capable of very high speeds are the classic example of a vehicle that will cost you more on auto insurance. For example, a Ford Mustang GT convertible is going to cost you much more to insure compared to a Ford Taurus. We recommend calling your insurance company before purchasing any vehicle to be sure that you can afford the monthly premiums before you leave with the new car. Here at Cheapest Auto Insurance, we allow customers to receive quotes 24/7 on our site so they can know how much they will pay before they leave the car lot with their new car.
Concluding thoughts on how to save money on high risk auto insurance
Cheapest Auto Insurance wants to help you save money on your auto insurance for all high risk drivers. So here are a few last tips to find the cheapest auto insurance rates possible:
Be cautious before turning in a collision claim (the more claims you have the more money you will pay on your auto insurance
- Take a defensive driving course- This can lower your auto insurance up to 10%
- Improve your credit rating
- Wait for violations to fall off your driving record
- Always compare as many insurance quotes as possible.