Cheapest Car Insurance for High-Risk Drivers

On average, the cheapest car insurance for most high-risk drivers costs $1,459 per year or $122 per month for full coverage from State Farm. Below, we ranked the best rates for high-risk car insurance policies.

Along with State Farm, Travelers, Nationwide and Progressive offer affordable high-risk car insurance. Use the table below to check the cheapest car insurance companies for different ages and coverage types:

*While cost is a key factor, choosing a plan that fully meets your needs is also important. Compare multiple providers and consider eligible discounts to find the best coverage.

State Farm and American Family offer the cheapest car insurance in most states, being the most affordable in 13 and 12 states, respectively. Use the table below to find the cheapest option in your state.

Here are the states with the most affordable car insurance for high-risk drivers:

1. Idaho: State Farm - $567 per year and $47 per month
2. Ohio: American Family - $611 per year and $51 per month
3. Nebraska: American National - $623 per year and $52 per month
4. Vermont: State Farm - $649 per year and $54 per month
5. South Carolina: American National - $702 per year and $59 per month

The states with the highest rates for high-risk drivers are:

1. Nevada: COUNTRY Financial - $1,377 per year and $115 per month
2. Maryland: State Farm - $1,355 per year and $113 per month
3. West Virginia: Erie - $1,310 per year and $109 per month
4. Michigan: Chubb - $1,297 per year and $108 per month
5. Georgia: Auto-Owners- $1,286 per year and $107 per month

To find the best high-risk insurance coverage for your needs, explore the following sections for guidance on choosing the right policy. This will help you balance coverage and cost, tailored to your situation.

Insurance companies evaluate drivers' risk profiles using various criteria, not just traffic violations. Car insurance rates are higher for high-risk drivers. Below are the average costs for different driver profiles.

Car insurance providers view students and teens as high-risk drivers due to inexperience and higher accident rates, leading to much higher insurance costs. For example, an 18-year-old added to a family policy can expect to pay an average of $2,641 per year, compared to $1,220 annually for a 40-year-old driver.

Your credit history may affect insurance costs since insurers often link poor credit management to a higher likelihood of filing claims. Drivers with poor credit typically face higher car insurance costs. On average, they pay $2,260 more annually — nearly three times as much as those with good credit.

California, Hawaii, Massachusetts and Michigan don't allow credit to be used as a rating factor. In other states, you can still find low-cost car insurance for drivers with poor credit. Improving your credit by reducing debt and making on-time payments can help lower your premiums.

A typical sports car, the Ford Mustang, is relatively expensive to insure. Drivers with a 2010 Ford Mustang pay an average of $204 more than those with a Toyota Camry of the same model year. Those with a 2020 Mustang pay about $894 more.

Data shows that sports cars are more commonly stolen, leading some insurers to charge higher premiums. Also, sports cars are smaller and lighter than standard sedans, making them more prone to damage in accidents.

Comparing the cheapest providers and average costs can help, but getting a car insurance quote is the only way to accurately estimate the cost of a high-risk car insurance policy. MoneyGeek's calculator makes company and cost comparisons easier. By entering some basic information, drivers can get car insurance quotes from multiple providers in minutes.

Insurance providers consider high-risk drivers more likely to file claims. High-risk drivers may have serious violations, such as:

• Driving under the influence of alcohol
• Driving with a suspended or revoked license
• Driving recklessly
• Drag racing

Insurance rates after a speeding ticket are usually lower than for drivers with multiple accidents. 

Your credit history or vehicle type can raise premiums, even with a clean driving record.  Past violations or lapses in insurance coverage can also increase costs, even with a safe car and good credit.

If you are a high-risk driver and can't find coverage, look for insurers specializing in nonstandard auto insurance or a residual market plan.

Residual market programs group high-risk drivers in the state to provide coverage without raising premiums for less-risky drivers. The Automobile Insurance Plan Service Office (AIPSO) helps these drivers find insurance and maintains a state-by-state database to help you locate a plan in your area.

If you have poor credit, a history of traffic violations or a high-performance vehicle, you need high-risk car insurance. Providers like State Farm and Travelers offer competitive rates, with State Farm's starting at $1,459 annually. 

High-risk drivers can take steps to reduce premiums, such as improving credit scores, completing defensive driving courses and maintaining a clean record. Compare quotes from top insurers to find affordable coverage tailored to your needs. Explore the cheapest options and discounts to get financial protection without overspending.

Below, we answer some frequently asked questions to help you find the best and cheapest high-risk car insurance:

How We Determined the Best Providers

We gathered data from independent sources to determine the best car insurance providers for high-risk drivers and created a weighted scoring system.

• Customer satisfaction: 35%
  Customer satisfaction involves good service when contacting your insurer or setting up a policy. To assess satisfaction, we collected data from the National Association of Insurance Commissioners (NAIC) customer complaint index and J.D. Power customer satisfaction scores.
• Affordability: 20%
  Affordability scoring analyzes how premiums compare between providers. We collected data from Quadrant Information Services and state insurance departments.
• Claims: 20%
  Claim satisfaction accounts for a customer's specific experiences during the claim process. We collected data from the J.D. Power Claims Study and the CRASH Report Card to determine customer satisfaction when making a claim.
• Coverage: 20%
  Car insurance providers may offer both standard and unique coverages. We collected data on coverage offerings from various insurers to determine if they provide the essential coverages most drivers need.
• Financial stability: 5%
  Financial stability accounts for a car insurance provider's financial strength and market share. We used AM Best financial stability ratings to determine the insurers' record of meeting financial obligations with claims.

How We Determined the Cheapest Providers

To determine average car insurance costs and rate comparisons, we collected data from state insurance departments and Quadrant Information Services. We analyzed 210,564 quotes from 68 companies across 897 ZIP codes to establish national and state-specific rate averages.

Sample Driver Profile

To collect cost data, we used a sample driver profile with the following characteristics:

• 2010 Toyota Camry LE
• 12K miles driven annually
• A male or female driver

We modified the sample driver to account for these personalized factors:

• Age
• Geographic location and state
• Driving record — speeding tickets, at-fault accidents and DUIs (or similar offenses, depending on the state) on record

Policies, Coverages and Deductibles Explained

Using our sample driver profile, we collected data on premiums for a full coverage policy with a $500 deductible meeting state minimum coverage requirements. In a non-collision incident or at-fault accident, the deductible is the amount you'll pay before your insurance kicks in to cover the damage to your vehicle.

Coverage requirements are set at the state level. We collected data on state-specific rates based on each state's coverage requirements to determine state and national averages for minimum coverage.

Learn more about MoneyGeek's car insurance methodology.