Best and Cheapest Car Insurance for High-Risk Drivers

High-risk car insurance is more expensive than car insurance for experienced drivers or drivers with a clean motor vehicle record. Drivers considered high risk are young and inexperienced drivers or drivers that have one or more offenses on their record — such as a speeding ticket, an at-fault accident or a DUI.

Other driver profiles that are considered high risk are drivers with a lapse in coverage, certain types of car models or drivers with poor credit.

We analyzed high-risk car insurance costs and providers to determine the best and cheapest car insurance options.

State Farm provides optimal high-risk car insurance for various driver types, including SR-22 insurance for those who need to file an SR-22 according to state regulations. It also offers non-owner SR-22 car insurance for individuals without a vehicle but still needing state-required coverage.

The cost of your insurance is directly linked to the severity of your driving violations, and this can vary from one insurance company to another.

For instance, the best cheap car insurance rates after a single speeding ticket will generally be lower than for a driver with multiple accidents on their record. Different insurers have their own methods for assessing risk, so always shop around to find the most affordable and suitable coverage for your specific situation.

For high-risk drivers seeking affordable car insurance, State Farm and Travelers offer the most budget-friendly options:

• State Farm: $1,459 per year and $122 per month
• Travelers: $1,649 per year and $137 per month

While affordability is an important consideration when it comes to car insurance, especially for high-risk drivers, you should also focus on choosing a plan that adequately meets your needs. Explore the cheapest car insurance companies and learn about potential car insurance discounts to secure the best coverage for your situation.

For high-risk drivers seeking car insurance, here's a look at the states that offer the most and least affordable options:

5 Cheapest States for High-Risk Drivers

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

5 Most Expensive States for High-Risk Drivers

• Nevada: Country Financial - $1377 per year and $115 per month
• Maryland: State Farm - $1355 per year and $113 per month
• West Virginia: Erie - $1310 per year and $109 per month
• Michigan: Chubb - $1297 per year and $108 per month
• Georgia: Auto-Owners- $1286 per year and $107 per month

Keep in mind that your location can significantly impact the rates for car insurance. While finding the most affordable option is advantageous, remember to also consider the best coverage that fits your specific needs, ensuring you have the financial protection you require.

Insurance companies evaluate drivers' risk profiles using various criteria — not just driving violations. For instance, car insurance for new drivers often comes with higher premiums due to their limited experience on the road, which insurers see as a higher risk. Similarly, car insurance for drivers with a poor credit history can be more expensive, depending on the state.

The type of vehicle you drive can also impact your insurance rates. Cars renowned for their safety features, like certain Volvo or Subaru models, tend to be cheaper to insure. On the other hand, owning a high-performance sports car can place you in a higher risk category due to the potential for more risky driving behaviors and the higher costs of repairs. Insurance underwriting is a complex process, and each company has its own proprietary method, so rates can vary greatly from one insurer to the next.

Car insurance providers view students and teen drivers as high-risk drivers since they have less experience behind the wheel and higher accident rates than more experienced drivers, leading to a significant difference in insurance costs. For example, an 18-year-old driver can expect to pay an average of $2,641 per year when added to a family policy. In contrast, the average rate for a 40-year-old driver is $1,220 annually.

Finding cheap car insurance for teens is still possible, depending on where you live and your individual circumstances.

Being added to an existing family policy helps young drivers save on car insurance. In most cases, it is illegal for a teen under 18 to purchase auto insurance without an adult co-signer. Many insurers also offer lower rates for maintaining good grades, driving safely with a usage-based telematics program and being away at school without regular access to a car.

To find cheap car insurance for students, also consider driving a vehicle with a strong safety rating.

Your credit history may affect insurance costs since insurers assume a correlation between poor handling of credit and an increase in the number of claims filed. Having a poor credit record can make finding reasonably-priced car insurance more challenging. On average, drivers with poor credit standing pay $2,260 more in car insurance per year, nearly three times as much as those with good credit scores. California, Hawaii, Massachusetts, and Michigan do not allow credit to be used as a rating factor.

In other states, you can still find cheap car insurance with poor credit. Taking steps to improve your credit, such as minimizing debt and making on-time payments, may help lower your insurance costs.

Data shows that sports cars are more commonly stolen, causing some insurers to charge higher premiums to insure them. Also, because sports cars weigh less and are smaller than a standard sedan, they tend to sustain greater damage when involved in a wreck.

A common sports car model that is relatively expensive to insure is a Ford Mustang. According to our latest research, drivers with a 2010 Ford Mustang paid an average of $204 more than those who owned a Toyota Camry of the same model year. Those driving a 2020 Mustang paid roughly $894 more.

High-risk drivers come in many forms, according to auto insurers. Even if you have a clean driving record, factors such as your credit history or type of vehicle can raise premiums. Conversely, past violations can increase costs even if you have a safe car and good credit. Some of the most serious violations that can make you exceptionally risky include:

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

If you have serious violations on your driving record, you may need to file an SR-22 or FR-44. The latter only applies is you live in Florida or Virginia. Also known as a certificate of financial responsibility, these documents must be filed to prove you carry the minimum required amount of car insurance in your state. Getting high-risk insurance, also known as nonstandard car insurance, will cost more, but there are plenty of ways to save.

If you’re a high-risk driver and can’t find a carrier to cover you, look for insurers that specialize in nonstandard auto insurance or a residual market plan.

Residual market programs bring together other overly-risky drivers in the state to provide coverage without raising the premiums of other, less-risky drivers. The Automobile Insurance Plan Service Office (AIPSO) helps these drivers find insurance. The group also maintains a state-by-state database to ensure you can locate a plan where you live.

If you still have questions about getting the best high-risk insurance for you, we answer some of the most common below.