High-risk auto insurance, also known as non-standard auto insurance, is an insurance policy created for drivers who are regarded as likely to get into accidents because of their driving history as well as other factors or file claims. This also includes drivers with different traffic violations, young or inexperienced drivers, DUI/DWI convictions, those who have a history of lapses in insurance coverage, and those with poor credit history.
Unlike standard car insurance policies, since these drivers pose a higher risk to insurers, high-risk auto insurance policies typically come with higher premiums. Hence, if you are recognized as a high-risk driver, you will find out that getting car insurance coverage is more expensive and difficult than a standard policy. Apart from this, different factors categorize drivers as high-risk. For instance, your driving record, claim history, and age.
Nevertheless, the purpose of a high-risk auto insurance quote is to help car owners who are experiencing difficulties qualifying for standard car insurance. Despite your risk profile or driving history, you can still obtain coverage for yourself and your car. But do not be discouraged because, as your risk factors and driving improve, you can go back to getting standard insurance policies with low premiums.
How Does It Work?
It is important that you understand what high-risk auto insurance is and how it works before considering it. Firstly, high-risk auto insurance works similarly to standard car insurance. However, one of the biggest differences is that high-risk auto insurance is created for drivers or car owners who are more likely to file a claim.
So, if you are unable to qualify for a standard car insurance quote because of certain factors, you can apply for a high-risk auto insurance policy. In addition to this, if the insurer sees that you present a higher risk, the cost of the premium will be higher.
What Does High-Risk Auto Insurance Cover?
Another thing that you should take seriously when shopping for high-risk car insurance is what it covers. We will be looking at what is not part of its coverage in another section. Before we begin, you should know that this type of insurance covers the same thing that a standard car insurance policy will. However, this is just for high-risk drivers. Here is what this insurance type generally covers:
- Medical payments
- Property damage
- Bodily injury
- Uninsured or underinsured motorist coverage
- Natural disasters
- Theft
- Vandalism
- Collision
Additional coverage includes:
- Rental reimbursement
- Roadside assistance
Therefore, you can choose to add these add-on coverages to your policy before buying it for extra coverage.
What Does It Not Cover?
Just like other standard car insurance quotes, high-risk auto insurance also comes with exclusions. This means that there are certain events, scenarios, and situations, as well as damages, that the quote will not cover. Although this varies by insurer, these are the common scenarios that this insurance policy will not cover:
- Business use
- Certain natural disasters
- Driving without a valid driver’s license
- Wear and tear
- Intentional damage
- War and nuclear risks
- Racing and other risky activities
- Personal property
- Uncertified drivers
- Criminal activities
This is why it is important to review the inclusions and exclusions of any high-risk auto insurance policy you come across. This will help you understand and know more about what is covered and what is not.
How Much Does Non-Standard Auto Insurance Cost?
Most of the time, the average cost of high-risk auto insurance is more than the yearly car insurance premium. It will cost you $1,730 if you want full coverage. However, keep in mind that the price of getting this type of policy is affected and determined by your insurance company and the reason.
Who Needs a Policy?
Drivers with one or more of these characteristics are eligible for a high-risk auto insurance policy. If you have:
- Poor credit history
- Poor driving record
- Teen drivers
- Need to file an FR-44 or SR-22
- Insurance lapse
- Traffic violations
- Have a sports or high-performance car
- DUI/DWI convictions
- First-time drivers
How to Get High-Risk Auto Insurance
Without a doubt, obtaining or applying for a high-risk auto insurance policy involves different steps to help you find the perfect policy from an insurance company. So, if you are interested, here are the steps you need to take to apply for a quote:
- Find out what you pose as a high-risk driver.
- Look around.
- Check out the state-provided options.
- Get all the necessary documentation ready.
- Ask about discounts.
- Review coverage options.
- Try improving your driving record over time.
- Get in touch with insurance brokers or agents.
- Complete the application procedure.
- Review the policy.
To repeat, being tagged as a high-risk driver is not a permanent title. If you can improve your driving record and behavior over time, you can access better coverage options and lower insurance costs.
FAQs
How is high-risk auto insurance different from standard auto insurance?
High-risk auto insurance typically comes with higher premiums and may offer fewer coverage options compared to standard auto insurance policies.
What factors determine if I need non-standard auto insurance?
Insurance companies consider various factors, such as your driving record, credit history, age, and type of vehicle, to determine if you require high-risk auto insurance.
Can I improve my driving record to lower my insurance premiums?
Yes, maintaining a clean driving record over time can help reduce your risk profile and potentially lower your insurance premiums.
How can I find high-risk auto insurance?
You can search for high-risk auto insurance providers online or consult with insurance agents who specialize in serving high-risk drivers.
Are there any discounts available for high-risk car insurance?
Some insurers may offer discounts for completing defensive driving courses or installing safety features in your vehicle, but these discounts may vary depending on the provider.
Can I switch from high-risk car insurance to a standard policy?
With time and by improving your driving record, you may become eligible for a standard auto insurance policy with lower premiums. It’s essential to discuss your options with your insurance provider.
Will high-risk car insurance affect my ability to get coverage for other types of insurance?
While high-risk car insurance may not directly impact your ability to obtain coverage for other types of insurance, such as home or life insurance, insurance companies may consider your high-risk status when determining premiums for other policies.
