Unfortunately, even the best high-risk auto insurance companies will likely charge you high rates if you’re deemed a high-risk driver. While there’s not much you can do to change your age or driving record, there are some factors that are still within your control when trying to find cheap car insurance.
Even as a high-risk driver, your state only requires you to have minimal coverage. Your lender’s or tenant’s requirements may require you to purchase additional coverage, but for the most part, you will only need to meet state requirements.
Removing unnecessary coverage is an easy way to lower your car insurance bill, so think about which coverages you can skip.
Increase your deductible
Raising your auto insurance deductible is another way to instantly lower your rates. You will, however, have to pay more out of pocket for repairs or a total loss. Be sure to weigh this risk against the monthly savings you could receive.
Take a safe driving course
Many insurance companies offer a discount for taking an approved safe driving course. Taking one of these courses will lower your rates and has the added benefit of potentially improving your driving skills and awareness.
Remember that insurance rates are based on risk. If an insurance company offers you a lower rate, it’s because calculations suggest you’re less likely to file a claim. This shows how effective defensive driving courses are in reducing accidents and violations.
Look for discounts
Being labeled as a high-risk driver doesn’t prevent you from getting car insurance discounts. Most insurers will have at least one or two discounts that you can take advantage of. Here are some of the most common:
- Automatic payment: Set up automatic payments
- Multi-font: Also known as a bundle discount, you can often save by combining your auto policy with other insurance products
- Multi-vehicle: Insuring several vehicles under the same policy
- Good student: Take advantage of discounts to maintain good grades at school
- Military: For members and their families
Monitor your credit score
California, Hawaii, Maryland, Michigan, and Massachusetts have laws that prevent insurers from using credit scores as a factor in setting rates. In all other states, your credit score can have a major impact.
Drivers with lower credit scores generally pay higher rates than those with better scores. Adopting good financial habits and learning how to improve your credit score can help you get better rates, even if you have multiple offenses on your driving record.
Try Pay-Per-Mile Insurance
With most car insurance policies, you will pay a flat rate for coverage. But these days, the best high-risk car insurance companies offer usage-based insurance plans that charge you based on how long you actually drive your vehicle.
If you rarely need to drive or can limit your time behind the wheel, these plans could be a good way to save on high-risk auto insurance. Just keep in mind that if you use your car too often, you’ll end up paying more.
Use a telematics program
Most major insurers offer a telematics program that can use GPS data from your phone or other device to monitor your driving habits. If you avoid risky behavior like accelerating too fast, braking hard, or looking at your phone while driving, you’ll be rewarded with lower fares.
However, these programs may also cause your rates to increase. If you’re caught practicing too many dangerous driving habits, your car insurance could become even more expensive.
Shop for coverage
Obtain auto insurance quote from multiple providers is one of the most important steps to getting cheap coverage from the best high-risk car insurance companies. As our cost data shows, which insurer offers the cheapest rates depends a lot on the motorist.
Even as a high-risk driver, factors other than your driving record or age will come into play. You won’t really know how much an insurance company might charge you until you get a quote. Then compare rates to find the most affordable car insurance on the market.