By Haley Crim
High-risk auto insurance may seem like a savior when you can’t find coverage, but it can quickly turn into a burden. Between higher fees and less coverage, it is often difficult to break out of a high-risk auto insurance cycle to find a better plan. Some ways to get off of these types of insurance policies include improving your credit score, maintaining constant insurance coverage, and more.
Are you a historically bad driver? Is your driving record littered with accidents and tickets? If so, you may qualify as a high-risk driver, which limits your options for insurance coverage.
While it can be difficult to get off of high-risk car insurance, it is not impossible. With a few lifestyle changes, you can get yourself back in the driver’s seat for a reasonable rate.
What Is Considered High-Risk Car Insurance?
High-risk auto insurance is a special type of insurance for drivers who are more likely to get into accidents. Records for high-risk drivers may include:
- Speeding tickets
- DWIs or DUIs
- License suspensions
- Spotty insurance coverage
- A low credit score
How Long Do You Stay on High-Risk Insurance?
The amount of time that you have a high-risk insurance policy depends on many factors, such as the severity of the infraction and whether you were at fault. Typically, insurance companies will look at your record to determine how long you will be on high-risk driving insurance before you can switch back to normal rates.
If you get a few speeding tickets, for example, then your insurance provider may require a high-risk policy for two to three years. However, for more serious problems, like a DUI, that time frame could increase significantly.
How To Get off of High-Risk Auto Insurance
Drivers who have high-risk car insurance policies often struggle to go back to regular vehicle insurance plans. Once you are on a high-risk policy, it can be a demoralizing cycle in which you face higher premiums and lower coverage.
However, it is possible to regain the opportunity for normal insurance coverage. Here are some steps that you can take if you want to leave high-risk auto insurance in the past.
Invest in a More Sensible Vehicle
If you own a luxury or exotic vehicle, consider trading it in for a standard model. Car insurance for bad drivers typically involves individuals who purchase expensive vehicles and may not have the means to cover accidents or drive recklessly. A less expensive car often means lower maintenance costs, along with a reduced monthly car payment.
Wait for Time To Pass
Sometimes, the only way to free yourself of high-risk automobile insurance is the passage of time. While you may be able to negotiate with your insurance provider, do not expect to get back on normal coverage until you have been on the high-risk policy for the allotted amount of time.
Improve Your Credit Score
A higher credit score shows insurers that you are financially responsible and will be able to cover insurance premiums and necessary deductibles or repairs. Drivers with higher credit scores are less likely to file insurance claims, which will save the insurance provider money in the long run.
Maintain Steady Insurance Coverage
While car insurance after an accident may seem like an obvious choice, it is important to keep your insurance policy at all times. Not only is it illegal in most states to drive uninsured, but lapses in coverage indicate to insurers that you do not care about the legal requirements to operate a vehicle. Therefore, you are more likely to receive tickets for driving without insurance.
Take Voluntary Driving Courses
It never hurts to improve your driving skills, but taking courses can actually help you increase your chances of changing to a standard insurance policy. Education will show the insurance company that you take driving seriously.
Frequently Asked Questions
How Can I Save Money on Auto Insurance?
While high-risk auto insurance tends to be more expensive than other types of car insurance policies, there are ways that you can reduce your monthly bill. Some cheap car insurance tips include:
Bundle Your Insurance Policies
Bundling different types of insurance will often be a lower rate than purchasing all of the policies individually. Insurance carriers use bundles to incentivize customers, so they typically offer competitive rates for bundles that include:
- Home insurance
- Auto insurance
- Renters’ insurance
- Life insurance
Remember, don’t bundle insurance just for the rate if the bundle includes policies that you do not really need. If you are a homeowner, for instance, then purchasing a renters’ insurance policy would be a waste of money.
Shop Around and Compare Rates
Do not just go with the first car insurance company that offers a rate that fits within your budget. Explore your options and determine which policy provides the most overall value.
The cheapest premium price does not always mean the best coverage. Consider the benefits offered for the monthly cost. A liability policy that is $80 a month, for instance, may not be as valuable as a full-coverage package at $190 a month.
Change Your Coverage
While full coverage is the best type of car insurance, it may not make sense for your budget. If you have a car loan, lenders typically require a full-coverage policy until you pay off the vehicle.
However, if you are not worried about paying for your own car repairs or if full-coverage perks seem unnecessary, a liability-only policy is more affordable.
What States Do Not Require Car Insurance?
The only state in the United States that doesn’t require car insurance is New Hampshire. However, you still need to prove that you can cover the cost of collision and repairs, so there is still an element of financial responsibility.
Free Yourself From the Cycle of High-Risk Auto Insurance
High-risk auto insurance can be a drain on your morale and on your wallet. With this guide, you will be able to find a vehicle insurance policy that suits your needs and avoid the perils that come with being labeled a high-risk driver.
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