UPDATED: Mar 13, 2020
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High-risk drivers pay more for car insurance than low-risk drivers. But how much does high risk car insurance cost? How much more do high-risk drivers pay for car insurance than low-risk drivers? Today, we’re answering all your questions about the cost of high-risk car insurance.
The Price of High Risk Car Insurance Varies Widely Between Drivers
First, let’s start with something obvious: we can’t give you a specific dollar amount on high-risk car insurance. Different states have vastly different laws for car insurance. Different car insurance companies also insure high-risk drivers in different ways.
Some companies actually specialize in insuring high-risk drivers. The General, for example, specializes in providing affordable car insurance to high-risk drivers. Many of America’s largest car insurance companies, meanwhile, will maintain a risk-diverse pool of drivers, including low-risk drivers who pay less for car insurance and high-risk drivers who pay more.
Depending on your car insurance provider, your demographic info, and your state, the price you pay for car insurance will vary widely.
High-Risk Car Insurance Typically Costs 30% to 100% More Than Ordinary Car Insurance
If you have recently been convicted of a DUI or involved in an at-fault collision, then you might be considered an at-risk driver. The next time you renew your insurance policy, you will inevitably pay more for your premiums.
Generally speaking, your car insurance rates will increase by at least 30% after any at-fault accident involving bodily injuries. You can expect at least a 50% to 150% increase after a single DUI.
Many insurance companies also consider you a high-risk driver after two speeding tickets. After two speeding tickets, your rates might rise by 20% to 90%.
If your ordinary car insurance policy costs $900 per year – which is about average in the United States – then high-risk car insurance will cost anywhere from $1,170 to $1,800, assuming your car insurance company raises rates by 30% to 100%.
Obviously, drivers in some states pay considerably more for car insurance. Drivers in Florida, for example, pay an average of around $1,500 per year for car insurance. In Florida, a high-risk driver who pays $1,500 per year for car insurance will pay $1,950 to $3,000 per year if considered a high-risk driver, assuming the same 30% to 100% increase in price.
Expect to Pay Anywhere from $1,800 to $3,300 Per Year for High-Risk Car Insurance
Here are some high-risk car insurance quotes we got through our own comparison form from different companies in the United States. The quote was for a 40-year old driver driving a 3-year old sedan with full coverage:
Company 1: $1,810
Company 2: 1,837
Company 3: $2,494
Company 4: $2,749
Company 5: $3,314
As you can see, high-risk car insurance quotes vary widely across the market – even when it’s the same high-risk driver requesting a quote. That’s why it’s so important to compare car insurance prices from different companies. Even if you’ve been satisfied with the same car insurance company for a decade, it might be time to switch if they’re charging an exorbitant price on high-risk car insurance.
Certain High-Risk Drivers Require an SR-22
Some high-risk drivers require an SR-22 form. An SR-22 form, also known as a Certificate of Financial Responsibility (CFR), isn’t strictly car insurance. Instead, it’s a verification that you have car insurance coverage.
If you’ve been convicted of multiple DUIs, then your state DMV may require you to provide an SR-22. Most high-risk car insurance companies will give you an SR-22 for a nominal fee of $15 to $25.
The SR-22 is in addition to your high-risk car insurance. You’re typically required to have your SR-22 form for 3 years.
Other Costs of High-Risk Car Insurance
High-risk car insurance is inevitably more expensive than standard car insurance. However, there are other costs to consider with high-risk car insurance. In order to receive full car insurance coverage, for example, the insurance provider may have special rules you need to follow, including:
Limits on Who Can Drive Your Car: High-risk car insurance might only allow the covered driver to drive the vehicle. Or, the high-risk car insurance policy might exclude certain classes of drivers – like drivers under age 25.
More Frequent Driver’s Record Checks: Many people are surprised to learn that an insurance company might not check your driving history with every renewal. If you have years of safe driving history, then your driving record might only be checked every 2 or 3 years. High-risk drivers, however, can expect more frequent driver’s record checks.
Smaller Payouts: Another downside of high-risk auto insurance is that you may receive smaller payouts. High-risk car insurance policies may depreciate repairs. That means your car insurance company may not cover the full cost of repairs after an accident.
No Insurance for Punitive Damages: If you’re sued for punitive damages after a car accident, then an ordinary car insurance policy will cover your liability and legal costs. High-risk car insurance, unfortunately, does not work in the same way.
For all of these reasons, the true cost of high-risk car insurance might be significantly higher than just the numbers you see on your monthly premium. Compare as many quotes as possible to ensure you get a fair price on high-risk car insurance.