How to Find High Risk Auto Insurance Companies

If you find yourself in the high risk driver category and your auto insurance company won’t renew your policy, you can look to the non-standard insurance market for help. Before we discuss how to find high risk auto insurance companies, it is important to understand which types of high risk drivers need the most help.

Auto insurance companies define a high risk driver as a driver whose actions, health, experience, or knowledge makes the driver a risk to themselves or other drivers on the highway. High risk drivers can fall under any (or a combination of)  the following categories:

•    A new driver, whether teen or adult
•    An individual that accumulates multiple speeding tickets and other traffic violations
•    An individual that has one or more DUI/DWIs or has been prosecuted for reckless driving
•    Drivers with two or more accidents during a one year period
•    Individuals with certain medical conditions that could affect their driving ability
•    Drivers with bad credit
•    Males under the age of 25
•    Individuals over the age of 70

It is important to note that auto insurance companies also consider the driver’s geographic area and type of car when assessing risk. If you live in a high crime area or you drive a hot rod, a sports car or luxury car, you may be placed in the high risk category. This means, you will pay a higher auto insurance premium.

New drivers, males under the age of 25, individuals over 70, and drivers with bad credit or certain medical conditions may still qualify for a standard insurance policy. Unfortunately, these drivers will pay much higher premiums than low risk drivers. Middle-aged, non-smoking females represent the lowest risk group for auto insurance companies and single males under 25 represent the highest.

Drivers in need of the most help when it comes to obtaining coverage are drivers with multiple speeding tickets and other traffic violations, drivers with one or more DUIs/DWIs, and drivers with multiple accidents within a one year period. If your insurance company will no longer insure you and you cannot find another standard carrier, you will have to do one of two things:

•    Obtain insurance through your state Automobile Insurance Assigned Risk Plan
•    Tap into the non-standard auto insurance market

Each state has an Automobile Insurance Assigned Risk Plan. All states require liability insurance for drivers that have been involved in an accident, drivers with a DUI, drivers with multiple reckless driving convictions, and multiple traffic violations. Because it is extremely difficult to obtain this kind of high risk auto insurance through a standard auto insurance company, each state has an  Automobile Insurance Assigned Risk Plan. Under the plan, high risk drivers cannot be turned down for auto insurance. The rates are extremely high (double or triple the national average), but you are guaranteed coverage.

If your state has not ordered you to use its Automobile Insurance Assigned Risk Plan, you can search for non-standard auto insurance companies. The rates for a non-standard auto insurance policy will still be high, but they will be much lower than your state’s assigned risk plan. Roughly 385 auto insurance providers specialize in non-standard policies. These companies belong to around 60 major insurance groups. Some major carriers such as GEICO, Allstate, and Progressive have non-standard auto insurance programs in place. It is important to keep in mind that these companies are not legally required to offer a policy. They will assess your “insurability” to determine whether or not they want to assume the risk.

To find out more information about your state Automobile Insurance Assigned Risk Plan, contact your Department of Motor Vehicles (DMV). Your DMV may also have a list of non standard auto insurance providers in your state. Your State Insurance Department will be helpful as well. Click here to visit the National Association of Insurance Commissioners (NAIC) for a directory of state insurance department websites.