Every insurance company will carry out a risk assessment whenever you apply for any car insurance policy to see the likelihood that you will have claims after that. Insurance companies look at different factors, such as your credit score, age, driving history, and gender. You will be considered a high-risk customer if you have had a couple of accidents in the past.
A high-risk client means you will pay higher premiums. More often, many insurance companies will charge high-risk clients more fees because of the likelihood that they will file more claims. That is why you need to understand how high-risk insurance works and who are the best providers so that you get the best deal.
In this post, I’ll walk you through the fundamentals of high-risk insurance, and then show you some of the best high-risk insurance providers to check out for in 2020.
What is High-Risk Insurance
High-risk insurance is coverage offered to someone who an insurance company considers more at risk of getting involved in accidents and filing a claim. There are a couple of reasons why an insurance company might consider you a high-risk client, and the good news is that you can control some of them. Sadly, other insurance companies will be adamant about insuring high-risk drivers at all.
What is a High-Risk Driver?
A high-risk driver is a person who’s liability has been assessed by an insurance company and has been considered expensive to insure. In other words, the insurance company expects that this driver will file claims more often. High-risk drivers are usually charged higher premiums because of their likelihood to file many claims. Below are some of the high-risk driver personalities:
- Newly licensed drivers
- Elderly drivers
- Poor credit score drivers
- Drivers with many accident incidences
- Drivers with traffic violations
- DUI conviction drivers
- Drivers with lapsed insurance.
Best High-Risk Insurance Providers
Now that you have an understanding of what high-risk insurance is and who are considered high-risk drivers, let’s look at some of the best high-risk insurance providers, shall we?
The General Insurance is an automobile insurance service provider and a subsidiary to PGC Holdings Corp. This insurance company offers insurance coverage in Arizona, Colorado, California, Delaware, Florida, Arkansas, Alabama, Connecticut, Georgia, among other states except for Michigan, New Jersey, and Massachusetts.
- It offers coverage even to the highest-risk clients
- It has a couple of unique discounts
- You can file your claim through their smartphone application
- Satisfaction guaranteed.
- Low liability coverage
- There are many customer complaints
- It only offers car insurance covers.
Discounts offered by the General Insurance
Sure, this insurance company only offers car insurance covers, which means that you can’t bundle different insurance covers to get a discount. Fortunately, you can still get some very good discounts, which includes:
- Multi-car – This is for clients who have insured more than one car
- Double Deductible – This discount doubles your deductible for your collision and comprehensive policy for the first forty-five days, helping to cut down your premiums.
- Paid In Full – Customers who pay their premiums for the entire year will get a paid in full discount
- Previous Insurance – This is a discount issued to those who joined the General from another insurance provider.
If you are a DUI driver or with many violations, you’ll need an SR-22 document. Sadly, not all insurance companies will provide SR-22 documentation or insure high-risk clients. Fortunately, you can qualify for car insurance from Dairyland Insurance directly from their official website and get your SR-22 documents.
- Dairyland insurance operates 24/7
- You can access its services via the phone
- It’s your prerequisite to choose your best body shop
- Better rates for high-risk drivers
- Satisfaction guaranteed.
- You can lose your coverage if you pay late
- Too many complaints due to technical claim process
- No local agents.
Discounts by Dairyland Insurance
There are also a couple of discounts offered by Dairyland insurance, which include:
- Quarterly/Yearly Payment Plans
- Advanced Quote
- Defensive Driving
- Transfer Discount
Did you know that your credit score could also affect whether or not you obtain car insurance? While many other car insurance companies will deny your car insurance cover, Direct Auto Insurance will offer it to you while giving you time to improve your credit score.
- Offers insurance covers to high-risk drivers with a poor credit score
- Offer SR-22 documents for drivers who need them
- It has different payment options for drivers on a limited budget
- Satisfaction guaranteed.
- Services only extended in 12 states
- It does not offer any other type of insurance.
Discounts offered by Direct Auto Insurance
GEICO or State Farm indeed has more to offer in terms of discounts than Direct Auto Insurance. However, Direct Auto Insurance has more than 12 discounts, and you stand a chance to slash your bills by up to 25% or even more.
Some of the notable insurance discounts by Direct Auto Insurance include the Military discount and the multi-car discount. For the military discount, you get up to 25 percent off as a service member. Also, you will get a 25 percent discount if you insure two or more cars. You will also qualify for a discount if you cover low mileage, you are a safe driver.
Getting car insurance if you have a couple of accidents on your record can be downright frustrating. It gets even worse if you have many traffic tickets. Fortunately, GEICO offers competitive rates even to high-risk drivers who may have a couple of accidents and traffic tickets on their records.
- Great discount offerings
- Users have got the best user experience from the smartphone application
- Decent customer ratings/ reviews.
- Limited agents
- No GAP coverage
Discounts by GEICO Insurance
One of the reasons why GEICO Insurance company stands out is that it offers customers various insurance discounts. As a GEICO Insurance customer, you can get discounts based on your loyalty to the company and your driving habits. Even more, GEICO Insurance partners with different associations to provide customers with special discounts.
Some insurance companies don’t take Driving Under Influence (DUI) lightly. Most of them will punish you heavily by raising the rates dramatically if you receive a DUI. However, StateFarm Insurance is more tolerant of drivers who receive DUI. Instead of offering exorbitant rates, StateFarm offers the lowest rates in more than twenty states.
- DUI drivers can qualify for lower rates
- It has a Drive and Save discount package
- Has other policies
- Satisfaction guaranteed.
- Customers get pressured to work with local agents
- Limited mobile app
- Poor customer satisfaction.
Discounts offered by StateFarm Insurance
StateFarm Insurance has a ton of insurance discounts you can take advantage of. You can save from 5 to 65 percent with their discounts. It’s Safe, and Drive Package is the most popular. An application will track your driving habits, and you get the discounts based on them. You also get a 5 percent discount for just signing up using the application.
Frequently Asked Questions
How much does high-risk insurance cost?
Depending on your state’s coverage requirements and other factors, your rates are likely to vary significantly. They can fall anywhere between 10-50 percent when proven a high-risk driver. This is a huge difference compared to your insurance premiums prices.
Is my coverage affected by being a high-risk driver?
High-risk drivers tend to pay more than low-risk drivers for the same type of coverage. Sadly, the standard insurance coverage won’t be available to some high-risk drivers, prompting them to seek insurance from companies specializing in non-standard auto coverage.
How long am I considered a high-risk driver?
Fortunately, your bad driving history is unlikely to impact your insurance rates. A variety of car insurance agencies will only check for accident and traffic violation records for the past three years. Luckily, your insurance rates aren’t affected if your records date five years ago or so. Sadly, DUI evictions aren’t an exception to this rule. Records of up to five years can still impact your coverage rates.
How can I protect my driving coverage?
Although some factors, such as age and gender, are out of control, there are tons of factors that will still enhance your driving coverage protection. Renowned companies will often recommend the following steps to help de-risk your driving coverage:
- Work on improving your credit score
- Learn the driver’s safety course
- Resought for best insurance rates after three years of your previous traffic violation
- Ensure that your auto coverage is up to date.
Wrapping it Up
Finding the best car insurance can be overwhelming when you’ve had a bad driving history. Even though tons of agencies are willing to provide you with full coverage but at higher rates.
More often, these companies are available in two categories: general insurance and non-standard auto insurance. General providers offer coverage to any driver, while auto insurance tailors their coverage needs to high-risk drivers.
While the best rates and state’s insurance requirements are worth considering for high-risk drivers, it would also help if they ensure that they are getting all the essentials from an insurance agency. Such include an SR-22 certificate or any other documentation that can attest to their insurable status.