Finding (and affording) insurance when you’re considered a high-risk driver can be a struggle. Learn what a high-risk driver is, how long you might be considered one, and how to still get the coverage you need.
Driver’s license points are state-issued as a result of driving violations. How they’re assigned differs between states but, generally, more severe violations warrant more points. Insurance points refer to the system insurance companies use to raise your rate due to driving violations and at-fault accidents. They differ between companies and are related to your driving points, but aren’t the same.
It’s not a legal or official industry designation, but a high-risk driver usually indicates someone who has a DUI, multiple accidents, or multiple driver’s license points. What it means is that you’ll probably end up paying more for coverage than someone who isn’t considered high-risk, and you may struggle to find an insurer willing to write you a policy.
Your driving record, or motor vehicle report (MVR), should be available from your local DMV for a small fee (often less than $10) or a third-party vendor, but typically at a higher rate. You also may be able to get a copy from your insurance agent at no cost (though it won’t be an official copy). Correct any errors by contacting the DMV and/or your insurer.
It can be tricky getting car insurance without a license. How difficult it will be depends, in part, on why you don’t have a license and how the car will be used. Contact multiple insurance agents and explain your situation. It may also help to name another driver as primary and make yourself an excluded driver. If you only need a parked car policy, your lack of a license may be less of an issue.
The answer depends on your insurer, where you live, and also the nature of the ticket you got. But plan on at least three years, in general. Though minor offenses might not be used to calculate your rate after two. If you got a DUI, however, it could stay on your record for 10 years or longer.
A DUI will impact your car insurance significantly. Not only should you expect your rate to skyrocket, but your policy may be cancelled—even before it’s up for renewal—and you may have trouble finding an insurer willing to give you a new policy. If you’re required to file an SR-22 certificate, your insurer will find out about the conviction once it’s filed.
The answer is yes. Insurance companies price policies based on risk. If you’ve been convicted of a crime, you’ll generally be seen as a higher risk to an insurance company. But since insurers don’t always check your criminal record, they may not know about the conviction unless it was related to driving. How much more you’ll pay for coverage depends on what you were convicted of.
An SR22 is a form issued by an insurance company that informs a state that you have the minimum insurance required in that state after getting your driving privileges back. It is not insurance or coverage, but a way your state ensures your car insurance is active.
The premium is the amount of money you pay the insurance company in exchange for insurance coverage. It may be billed monthly, quarterly, or annually. Or you can pay the entire premium upfront, ideally, at a discount.
Insurance policy limits are the maximum an insurer will pay for a particular type of coverage.
A salvage title is a special type of title given to a vehicle that has sustained significant damage in an accident, flood, or other event. The damage is usually so extensive that fixing the vehicle would cost more money than the vehicle is worth.
A car once considered a total loss that has been restored and is road-legal may have a rebuilt title. These cars tend to be cheaper than their counterparts, but come with serious drawbacks.
Assigned risk plans provide auto insurance for drivers whom most insurers consider too high-risk to cover. Established by state governments, assigned risk plans offer coverage through ordinary carriers, but cost more than regular car insurance.
If you’re found to be “at fault” in an accident, it means that you caused the accident. At-fault accidents often increase your insurance premium.
An excluded driver is someone that you intentionally ask your auto insurance provider not to cover. Generally, this is someone you have had listed on your policy that has become a problem driver.
An insurance deductible is the amount of money you will pay on an insurance claim before the coverage kicks in and pays the rest.
Car insurance surcharge is an additional fee or penalty that is added to your car insurance premium. It is often the result of a traffic violation or an at-fault accident.