High-risk auto insurance: Your questions answered

High-risk auto insurance is a specialized policy for drivers who are more likely to file claims, miss payments, or be involved in accidents. For example, having incidents on your record, like at-fault accidents, multiple tickets, DUIs, or auto policy cancellations, can raise red flags for insurers.

While these insurance policies for high-risk drivers are typically more expensive than standard policies, drivers can improve their records and even remove their high-risk designation over time.

Insurance companies may consider you high-risk if your history shows a greater likelihood of filing claims or missing payments. Factors can include your driving record, experience level, and even how you manage your insurance policy.

Common reasons drivers are considered high-risk:

• Major violations, such as a DUI or reckless driving

• Multiple speeding tickets or other traffic violations

• At-fault accidents

• Lapses in auto insurance coverage

• Driving with a suspended or invalid license

• Poor payment history or low credit score

• Limited driving experience

• Age-related limitations

That said, even if you’ve had challenges in the past, your status can change over time as you build a stronger record. Typically, the longer you maintain a clean driving record, the more your risk level—and your rates—can drop.

There’s no universal timeline for being considered a high-risk driver. Each person’s situation is reviewed individually, though some factors tend to carry more weight than others. For example, if you have multiple serious violations, such as excessive speeding or driving without a license, you may remain classified as high-risk longer than someone with a minor infraction.

In most states, minor traffic tickets and convictions will remain on your driving record for roughly three to five years and can affect your insurance premiums during that time. At-fault accidents typically influence your rates for up to five years, though insurers may consider older incidents depending on the severity and company policy. More serious offenses, like DUI convictions, can stay on your record for even longer, depending on your state.

Auto insurance rates will vary based on your unique circumstances. One of the best ways to determine the cost of car insurance is to request a quote or speak to an agent. Either can help you find the most affordable high-risk auto insurance policy for your situation.

Fortunately, there are ways to reduce coverage costs and eventually drop your high-risk designation completely. Here are some tips.

In most states, your credit score is used to assess your risk as a customer because, typically, drivers with lower credit scores are less likely to pay their premiums. Even if your low credit score is the result of missed payments or financial struggles several years back, it can still contribute to higher car insurance rates.

That’s why rebuilding a bad credit score over time can help lower your rates. You can start improving your credit score a number of ways, including:

• Making on-time payments

• Checking your credit report for errors

• Paying down credit card debt

Since your high-risk status can be largely based on your driving record, one of the most important steps to lower your insurance costs is to drive safely and avoid accidents. Being proactive and maintaining good driving habits can help you remove points from your driving record over time.

Many insurance companies consider drivers without six months of continuous coverage to be high-risk. If you have a registered vehicle, keeping continuous insurance coverage can help protect your finances and improve your long-term rates.

Even if you don’t own a vehicle but need to drive occasionally, consider a non-owner insurance policy, which can help protect you if you’re found to be at fault in an accident while driving a vehicle you don’t own.

Just like you would for any major purchase, do your research, ask questions, and regularly evaluate the cost of your policy. As a high-risk driver, it’s essential to understand everything that impacts your car insurance and how you can work toward reducing the cost of your high-risk car insurance policy.

If you’re a driver searching for high-risk auto insurance, you can start exploring your options by starting your free quote today. Dairyland^®, a brand of the Sentry Insurance Group, offers affordable options for drivers who need nonstandard, high-risk auto insurance. As your driving record improves, your coverage options may become more affordable. You can also inquire about available discounts to save money on car insurance today.