How to Find Auto Insurance with a Poor Driving Record: Tips and Options
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Every driver should have auto insurance. Most states have legally mandated minimum insurance coverages, but a broader insurance policy could save you a lot of money in out-of-pocket costs. However, not everybody has a perfect driving record. Finding auto insurance for poor driving records can be a challenge.
If you have a history of traffic violations, accidents, or other driving-related issues, you'll likely have to pay higher insurance premiums or struggle to get insured at all. But don't worry, you can still get insurance that works for you and your budget. This guide will help.
Understanding High-Risk Driver Designations
Insurance companies typically designate drivers as preferred, standard, or non-standard. High-risk drivers often fall into the non-standard category. An auto insurance company may consider a driver high risk for any of these reasons:
- Driving history: New drivers, teen drivers, and drivers over 70 are often subject to higher premiums, even if they've never had an accident or made a claim.
- Accident history: Drivers with multiple at-fault accidents or comprehensive claims are often considered high risk.
- Traffic violations: Drivers with the most common ticket violations, moving violations, or multiple driving under the influence (DUI) or driving while intoxicated (DWI) convictions are highly likely to be considered high risk.
- Insurance history: Drivers with lapses in insurance coverage or no history of auto insurance are considered high risk.
- Vehicle type: Luxury, sport, or specialized vehicles like antiques are typically considered high risk because they often encourage dangerous driving and may be more expensive to repair.
- Poor credit: Drivers with poor credit tend to pay more for insurance premiums as they're at high risk of missing payments.
How a Poor Driving Record Affects Insurance Rates
Every state uses a different system to manage driver records. However, they all factor into auto insurance for poor driving records. Typically, auto insurers use a points system to determine how risky an individual driver is to insure. Points come from fault accidents, violations like a speeding ticket on record or DUI, or even switching carriers or having a lapse in coverage.
Regardless of insurance provider, more points means a higher auto insurance premium. If you have several points on your record, even cheap auto insurance for poor driving records will be higher than an insurance product for someone with no points.
Common Issues Faced by High-Risk Drivers
The most common problem that high-risk drivers must deal with is high premiums. When you have to pay a hefty monthly premium for even basic liability coverage, it can make important add-ons like collision coverage and comprehensive coverage feel excessive. These are necessary coverages, however, and can save you a lot of money in the event of a non-fault accident or acts of nature like a tree falling on your car.
Even more significant, those with a bad driving record may struggle to get insured at all. Some auto insurers simply won't offer insurance products to drivers with many points on their record. That limits your options and forces you into a situation of paying exorbitant premiums for limited coverage.
Strategies for Lowering Auto Insurance Premiums
There are perks of having a clean driving record, but if you're past that point, there are still some tricks to lowering your premiums.
Maintaining Continuous Coverage
Even if your driving record is spotty and you've seen your premiums increase after tickets or at-fault accidents, it's important to stay covered. Your driving history is all public record — you can't hide it. Gaps in insurance or frequently switching insurers to try to lower your premiums all show up when you apply for insurance. Those are red flags for insurers and will not help your case. Sticking with consistent coverage and building a stronger safe driving history will help lower your premiums eventually.
Adjusting Your Deductibles
Any driver can adjust their deductibles to lower their monthly premiums. A deductible is basically the amount you're willing to pay out of pocket to repair or replace your vehicle before the insurance company has to pay. As such, the higher your deductible, the less the insurance company will have to pay, thereby lowering your monthly premium.
Exploring Available Discounts
Discounts are usually easier for safe drivers to find, but they're not non-existent for high-risk drivers. Things like bundling your home and auto insurance or agreeing to pay an annual rather than monthly charge can lower your overall premiums. Likewise, many insurance companies offer discounts for taking defensive driving courses.
Alternatives for High-Risk Drivers
Sometimes, the best auto insurance for poor driving records is an alternative program. When you simply can't get insured by traditional companies, it's time to explore different options.
Non-Standard Auto Insurance Plans
Non-standard auto insurance is auto insurance for poor driving records. High-risk drivers may have no choice but to opt for more expensive high-risk car insurance products. In most cases, the coverage limits and plans are the same as standard plans, just with higher premiums. Like any insurance plan, the insurer reserves the right to cancel your insurance if it deems you too risky.
Non-standard auto insurance plans are available from most major insurers, as well as from companies that specialize in this kind of insurance.
State-Sponsored Insurance Programs
Many states offer state-assigned risk pools and financial support for drivers who can't find an auto insurance policy from a traditional insurer. Typically, state programs assign you to an insurance company with minimum coverage and accept some of the financial responsibility of insuring you. These programs are only for drivers who have exhausted all options and cannot find any company willing to insure them.
Importance of Comparing Insurance Quotes
Finding auto insurance for poor driving records is hard enough. Doing it on your own without any help can be positively exhausting. It's always important to compare quotes when shopping for auto insurance, but when you're a high-risk driver, it's essential. Fortunately, EverQuote's comparison tools can help drivers with poor records find the best coverage options and rates available to them.