The Best Car Insurance Companies for High-Risk Drivers

What is high-risk auto insurance?

High-risk car insurance is really no different than normal car insurance. What is different is the driver.

High-risk drivers have a history of at-fault accidents, speeding tickets or other infractions. Insurance companies aren't eager to provide coverage to these drivers as they are more likely to file claims. Data suggest drivers who are younger, have bad credit or live in certain ZIP codes are also more likely to file a claim or have one filed against them.

Because of this increased risk, high-risk drivers almost always pay higher auto insurance rates and have fewer choices of car insurance companies.

The best car insurance companies for high-risk drivers

USAA, State Farm and American Family Insurance are three of the best major car insurance companies for those with accidents or other infractions on their driving records. While these companies will raise premiums after an accident or other traffic violation, these rate hikes tend to be smaller than those levied by other auto insurance companies. Any of them could be a good fit if you're looking specifically for high-risk auto insurance companies that are reputable and can meet the needs of other drivers in your household, as well.

What driving factors make you a high-risk driver?

When an insurance company calculates your premium for your auto insurance policy, they assess driving and non-driving factors to determine how much risk you pose.

First, insurers typically look at the number of violations or citations you've received. Let's explore some of these common violations and consider the impact they could have on your driving record, insurance rate and whether or not you may be considered a driver with high risk in the eyes of an insurance company.

At-fault accidents

As a driver, an at-fault accident — especially with a bodily injury payout — can be a major indicator of insurance risk. It's not only a financial burden for the insurance company, which is responsible for damages through liability coverage, but an ongoing accumulation of risk as the company insures you in the future. An at-fault car accident increases auto insurance premiums by an average of $845 per year.

In most states, your car insurance rate will go up for three years following an at-fault accident. USAA, State Farm and Nationwide provide the cheapest policies after an at-fault accident. For more information, see our guide to finding insurance after a car accident.

Speeding tickets

On average, you can expect your insurance costs to increase by $431 per year after a ticket. Depending on the severity of the traffic violation, the insurance consequences of a ticket will vary. Less severe violations — like speeding — have a smaller impact on insurance premiums. But don't be fooled: speeding tickets are seen as precursors of more serious incidents, resulting in raised insurance rates.

Like an at-fault accident, you can be charged for a ticket for three to five years after a ticket citation. USAA, State Farm and GEICO provide the cheapest rates for drivers with speeding tickets.

Reckless driving

Insurance rates rise by an average of over $1,428 per year after a reckless driving charge — or over $4,000 in extra premium over the course of the three-year chargeable period. In many states, reckless driving is defined as driving dangerously and without care, potentially resulting in bodily harm and/or property damage, and is considered a major moving violation. A reckless driving charge is the sixth most expensive citation that affects car insurance.

The average premium after a reckless driving charge is $3,187 a year. USAA, State Farm and Progressive provide the cheapest rates after a reckless driving charge.

Street racing

Because of the dangers associated with street racing, this citation carries some very costly insurance consequences and is the second most expensive violation to affect car insurance premiums. Drivers charged with a racing violation were charged an additional $1,500 per year for auto insurance. Drive smart — don't race on public roads!

In our survey of top insurance companies after a racing citation, we discovered insurance companies charge drivers cited for racing $1,218 per six-month policy. USAA, State Farm and GEICO provide the cheapest options.

DUI/DWI

On average, your premium will increase by $1,681 annually after you're charged with a DUI. This comes out to $140 per month in excess premium, making DUIs the second most impactful violation to affect your rate. DUIs result in more property damage, bodily injury and death benefit payouts than any other citation. Regardless of your location, expect your premium to rise by about 96% if you're a driver charged with a DUI or DWI — not to mention any additional fees or legal ramifications.

If you've been charged with a DUI, your cheapest insurance provider might be Progressive, USAA and Farmers. For more information and state-by-state cost breakdowns, check out our guide on shopping for car insurance with a DUI.

What non-driving factors make you a high-risk driver?

While violations and accidents can lead to higher premiums, a number of personal factors can also influence car insurance rates.

Poor credit

To an insurance company, your credit score is a reflection of what kind of driver you will be. Federal Trade Commission (FTC) studies show drivers with low credit scores are more likely to file a claim than drivers with better credit — and when drivers with poor credit do file claims, they lead to more expensive payouts. Any time more risk is involved, your insurance company will protect itself by charging an inflated premium.

If you have poor or low credit, Nationwide, GEICO and USAA will likely offer the cheapest policies.

If using your credit score to determine your insurance premium seems unfair to you, you're not alone — some states consider credit score car insurance profiling a discriminatory practice and ban its use in determining car insurance rates. Learn more about how to find car insurance with bad credit.

Age

As far as driving is concerned, age matters and youth equates to inexperience behind the wheel of motor vehicles — to put it simply, a young driver is more of a risk. Auto insurance companies see teenage drivers as high-risk due to their lack of driving experience, which correlates to an increased likelihood of filing a claim.

Below are samples of rates comparing yearly and monthly premiums between people in their 20s versus adults in their 40s. Drivers who are in their 20s should look to USAA, GEICO and Nationwide for the cheapest average rates. Read more about how to find cheap insurance as a young adult.

Location

Because insurance is priced by ZIP code and regulated by your state, your location impacts car insurance rates. Living in a state with onerous insurance regulations — such as Michigan or other no-fault states — can impact your premium regardless of your driving record.

Learn more about auto insurance costs by state.

Insurance coverage history

Gaps or lapses in auto insurance coverage are seen as red flags by insurance companies. Drivers with uninterrupted histories of carrying car insurance with high coverage levels are seen as more financially responsible than drivers with coverage lapses.

Looking at the data, a driver with the same current car insurance coverage but no insurance history pays over $190 more for car insurance than a driver with five years of insurance history. If your insurer sees you as financially responsible, they will reward you with a lower premium. Certain insurers won't even draft a policy for a driver who hasn't maintained continuous coverage for the past six months.

Vehicle use

The way in which you use your vehicle can impact your insurance rates, even if you don't see yourself as a driver with especially high risk. If you use your vehicle for rideshare or commercial purposes, your insurance company might deny coverage outright based on the risk. Using your vehicle in high-density areas — and driving more miles — warrants the premium increase. As more people become drivers for rideshare companies, it's important to make sure your auto insurance coverage makes sense for the additional risk. Use our guide to compare insurance rates for pleasure use vs. commuter use policies.

Vehicle type

Car insurance rates will vary by vehicle type as well. Owning a high-performance vehicle is considered an added risk by insurance companies. Motor vehicles that are capable of off-roading or hitting high speeds, or those with valuable parts, are seen as a risky investment to an auto insurance company. This can mean a potentially higher premium for a driver of these types of vehicles.

License points

Many states use “points" systems to score driving violations. Each traffic violation is tied to a specific number of points that stay on your record for a length of time depending on your state and the severity of the violation. If you earn a certain number of points, you can have your license suspended or revoked.

However, your auto insurance company doesn’t cite points directly — they use your Motor Vehicle Record (MVR) to see the information that comprises your points total. Your MVR will provide a comprehensive list of any tickets you have been issued, as well as any traffic collisions. Although points on your driver's license can be reflective of a higher-risk driver, they do not lead directly to higher premiums.

How to save money on high-risk auto insurance

Take a defensive driving course

Take the course before the ticket is reported to your insurance company. Although this solution won’t help if you already have the ticket on your record, it’s something to keep in mind in case you are considering signing up for an expensive class. Some states may even allow you to take a defensive driving course in lieu of having points added to your record.

Consider our partner iDriveSafely for an online defensive driving course. Available in nearly every state, the skills you learn in this course may help you become a safer driver, thus avoiding traffic violations and accidents. Learn more about iDriveSafely's defensive driving courses.

Go car-free for a while

At the end of the day, it’s hard to undo mistakes you have already made. If you’re a high-risk driver, you’re going to be paying quite a bit more for car insurance. If you can’t afford car insurance currently and can get by with public transportation, a bicycle or rideshare services, try going car-free.

Bear in mind that you will not be able to legally drive your vehicle without insurance coverage. However, this could be a good solution if you’re on a budget.

High-risk insurance FAQs

How much is high-risk car insurance?

High-risk drivers will pay more for car insurance. However, the amount your premiums increase will vary depending on a number of variables. For example, a DUI/DWI conviction can raise your premiums by around 96%, which adds up to an extra $1,680 per year. On the other hand, a speeding ticket could increase the annual cost by an average of $431.

Which company has the cheapest car insurance for high-risk drivers?

This depends on your individual situation but among the major carriers, USAA tends to provide the cheapest coverage for drivers in a number of high-risk categories, such as at-fault accidents and speeding tickets. However, as USAA is only available to those in the military (or their immediate family members), other carriers offering lower rates include GEICO, Nationwide and State Farm. Chances are a major carrier will not offer the cheapest rate so it might be worth looking into a carrier that specializes in high-risk insurance.

What if I can’t find auto insurance coverage?

If you are denied coverage from a standard carrier, your best bet is to look for what’s known as a non-standard carrier. These insurance companies specialize in insuring drivers who don’t have the cleanest driving records. While you may forego some of the perks offered by standard carriers like GEICO or State Farm, you will be more likely to find coverage. However, if your driving record is such that even non-standard carriers are wary of taking you, most states have what is known as a high-risk pool. Your state can mandate that insurance companies provide auto coverage to these drivers, but beware this coverage is not cheap.