How much is insurance for high-risk drivers?
Travelers has the cheapest high-risk car insurance for most drivers, averaging $2,531 annually.
Written by
Writer, Fox Money
Erik J. Martin has almost three decades in and bylines at Reader's Digest, Los Angeles Times, and The Chicago Tribune.
Updated September 30, 2024, 11:32 AM EDT
Written by
Editor, car insurance
Scott Nyerges is a former senior editor and content strategist at U.S. News & World Report, where he led coverage of car insurance and other personal insurance lines. He's also served as a managing editor for Consumer Reports and news programmer for MSN.
Fox Money is a personal finance hub featuring content generated by Credible Operations, Inc. (Credible), which is majority-owned indirectly by Fox Corporation. The Fox Money content is created and reviewed independent of Fox News Media. Credible is solely responsible for this content and the services it provides.
If you have been in multiple accidents, been cited more than once for speeding or DUI/DWI, or have a poor credit history, your insurer may categorize you as a “high-risk” driver. If that happens, you’ll see your premium increase — a lot.
The average rate for high-risk drivers is $3,063 per year or $255 a month.
You may need to find a new insurer, too. That’s the bad news. The good news is that if you need high-risk car insurance, you can save money and get the coverage you need.
Key highlights
- High-risk car insurance costs $255 per month or $3,063 per year, on average. That’s roughly 62% more than for a driver with a clean record.
- Travelers and Nationwide have the cheapest sample annual rates for high-risk drivers.
- As a high-risk driver, you can lower your premium costs by improving your driving habits and taking advantage of insurers' popular discounts.
What makes drivers high-risk?
Insurance underwriters rely on several factors — age and gender among them — to determine how great a risk you are to indemnify or insure, and each company does it differently. But generally speaking, you can be labeled “high-risk” due to incidents on your driving record, past insurance history or other red flags.
"Auto insurers typically rate drivers as high-risk if they have a history of moving violations, at-fault accidents or have been convicted of a DUI/DWI,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute (Triple-I), an insurance industry trade group.
Additionally, "drivers with poor credit histories are also considered higher risk than drivers with good credit histories because actuarial studies show that how one manages their finances is a predictor of risk,” he says. “This means that drivers with low credit-based insurance scores have a much greater likelihood of filing claims versus drivers with high insurance scores.”
The number of infractions you’ve accumulated — and their severity — also will influence your rate as a high-risk driver.
There is typically some leniency when you only have one violation, assuming it’s not a DUI or for reckless driving,” says Brian Lebeck, president of the western business unit at Freeway Insurance, which specializes in hard-to-insure drivers.
In addition, most carriers consider accidents without injury a minor impact. It’s when you get multiple accidents or accidents with injury that you begin to see substantial rate increases,” he says.
Average cost of car insurance for high-risk drivers
Based on our data analysis, the average insurance cost for high-risk drivers is $255 per month, or $1,531 for six months, or $3,063 per year. You can expect to pay 62% more on average (that’s an additional $97 per month or $1,168 annually) as a high-risk driver compared to motorists with a clean driving record.
Affordable car insurance companies for risky drivers
Most national and regional insurers offer coverage to high-risk drivers at a steep price. Based on our rate analysis, Travelers and Nationwide have the cheapest average annual rates for high-risk drivers.
The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.
* USAA is only available to active and retired members of the military and their families.
High-risk car insurance cost based on your driver profile
Drivers with poor credit
How well you manage debt and pay your bills punctually can also affect what you pay for car insurance premiums. You will pay more for insurance if you have a poor credit history.
“Lower credit in most states equals higher insurance premiums. It can often be more than double the cost,” says Julie Jakubek, owner of an Allstate Agency in Phoenix.
Among the insurers we examined, Nationwide and Travelers have the cheapest annual rates on average for drivers with poor credit.
* USAA is only available to active and retired members of the military and their families.
Drivers with a history of speeding tickets
A single minor speeding ticket is unlikely to increase your insurance rate significantly. But rack up several tickets or get cited for going way over the limit, and you could pay a lot more.
“The severity of speeding citations will be determined by the type of ticket,” says Ben Galbreath, an independent insurance agent with Wallace & Turner Insurance in Springfield, Ohio. “If your speed is 15 to 20 miles per hour or more over the posted limit, this could be considered a major violation for excess speed. If a driver shows a frequency of these violations, this will move them to even higher risk due to the ongoing disregard for posted speeds.”
For these drivers, State Farm and Nationwide have the cheapest annual rates on average. USAA also has cheap rates, but its insurance is only available to military families.
* USAA is only available to active and retired members of the military and their families.
Drivers with at-fault accidents on their records
Even a single fender-bender that’s your fault can lead to higher premiums.
“Each at-fault accident can increase your rates up to 50% or more compared to a driver with a clean driving record of no at-fault accidents,” Jakubek says.
For these drivers, Geico, Farmers and Travelers have the cheapest sample annual rates.
* USAA is only available to active and retired members of the military and their families.
Drivers convicted of DUI/DWI
Drivers with a DUI (driving under the influence) or DWI (driving while intoxicated) citation can expect equally steep premium increases, based on our analysis.
“Both infractions will increase your rate substantially due to these being major violations and the fact that you’ll also need SR-22 insurance coverage,” says Jakubek.
Nationwide, Farmers and Allstate are among the cheapest insurers based on our data.
* USAA is only available to active and retired members of the military and their families.
Insurance rates for high-risk drivers after a lapse in insurance coverage
Remember: It’s against the law to drive without the minimum car insurance required in your state. But some drivers allow a lapse in coverage to happen. This can occur if you were dropped by your carrier, didn’t pay your auto insurance premium, or failed to renew your coverage and purchase a new policy.
If someone lets their insurance lapse, especially for a missed payment, insurers will see that driver as a riskier bet and charge a higher rate to minimize risk. The financial consequences aren’t as severe as some other red flags covered earlier, but you can count on car insurance rates heading north.
“A lapse in coverage will certainly increase your rates since many major carriers will not insure you and you may have to turn to a high-risk carrier,” Jakubek says.
If your coverage has lapsed, Nationwide is your least expensive option followed by State Farm, each of which should charge under $2,000 annually, on average.
* USAA is only available to active and retired members of the military and their families.
How high-risk drivers can lower their insurance rates
Just because you may be considered a high-risk driver today doesn’t mean that status will last forever.
“Even if you are considered a high-risk driver, you can still capitalize on common discounts offered by car insurers,” the III’s Friedlander says. “This includes bundling your auto coverage with another policy – such as homeowners insurance or renters insurance – having multiple vehicles on the same policy, paying your premium in full or signing up for electronic billing.”
Other ways to save include:
- Complete a defensive driving education or certification course.
- Avoid any lapses in insurance coverage.
- Improve your credit history by paying your bills on time and lowering your overall debt.
- Pay your policy in full to avoid monthly installment charges.
You may also find cheaper rates by shopping around and considering insurance providers that specialize in high-risk drivers, says Lauren McKenzie, an agent with A Plus Insurance in Sierra Vista, Arizona.
What steps can high-risk drivers take to improve their status?
If you’ve been deemed a high-risk driver, prepare to be patient.
“The length of time it takes before your risk status improves will depend on your state and your insurance carrier,” says the Triple-I's Friedlander. "Typically, accidents and moving violations generate policy premium surcharges for three to five years. The increase will be reflected in your next bill following the date of the infraction or accident.”
You can help your cause by driving responsibly, avoiding accidents, improving your credit, and not allowing your coverage to lapse. But ultimately, it’s up to you to make the effort.
“If you have a low insurance score and show no sign of improvement, you will continue to be designated as high-risk until you raise your score,” he says.
Bottom line
If you fall into the high-risk category, expect your insurance to go up about $250 a month. But there are steps you can take to lower your car insurance costs. You can shop around to see if another insurer will offer you a lower rate. Or you can take a defensive driving course, improve your credit score, or try for an auto-home insurance bundling discount or other insurance markdowns.
Frequently asked questions
How much more do high-risk drivers pay for insurance on average?
If you are classified as a high-risk driver by your insurer, your car insurance bill could be a lot higher than a driver with a clean record. On average, you’ll pay $255 a month, or $3,063 annually, for high-risk auto insurance. That’s around 62% more than the average rate for a driver with a clean record.
Can completing a defensive driving course help reduce my insurance rates?
If you’ve received a moving violation, you may be able to take a defensive driving course, which could keep an infraction like a speeding ticket off your motor vehicle record, Mark Friedlander of the Triple-I says. Completing a defensive driving course can reduce your rate by 5% to 10% annually, depending on your insurer.
How long does a driver typically remain in the high-risk category?
It depends. If you have a speeding ticket or at-fault accident on your record, it will be expunged after three to five years, depending on your state of residence. Being found guilty of DUI/DWI might result in you being deemed high-risk as long as the conviction stays on your driving history. Depending on the state, this may be as little as three years or as long as 10 years. If your insurance score remains low without any improvement, you’ll continue to be classified as a high-risk driver.
Methodology
Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.
In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.
We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.
Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.