The 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 record. Drivers considered high risk are young and inexperienced drivers or drivers that have an offense on their record — a ticket, an 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 insurance providers to determine the best and cheapest car insurance options.

• Travelers is the best widely available car insurance provider for high-risk drivers, with solid scores in financial stability, customer satisfaction and essential coverages.
• USAA ranks first in MoneyGeek's analysis, but its policies are only available to drivers in the military. Besides having affordable rates, it also received excellent financial stability and customer service scores.

High-risk car insurance doesn't come cheap — the average cost of auto insurance for a 40-year-old driver with an at-fault accident on their record is $2,021 per year, but a safe driver only spends $1,030 for the same coverage. Fortunately, drivers with violations on their driving records can find affordable auto insurance options.

MoneyGeek's analysis found that Travelers is the least expensive widely-available auto insurance for high-risk drivers, with an annual average premium of $1,951. USAA tops our ranking since a policy costs $1,569 per year, but only drivers affiliated with the military can purchase them.

Each state has a different minimum car insurance requirement. Since high-risk auto insurance rates vary significantly between states, knowing the rates for your area can make your search for insurers offering cheap car insurance for high-risk drivers more efficient.

Among the car insurance companies in our analysis, USAA frequently appears as the most affordable option. However, its policies aren't widely available — they're only available to drivers affiliated with the military, making them the best choice for cheap auto insurance for veterans.

Select your state in the table below to review the cheapest providers for high-risk drivers in your state.

When most people consider which factors indicate a high-risk driver, they think about many of the ones we already covered: a poor overall driving record or a violation, such as an at-fault accident or a DUI. But insurance companies may decide you pose a high risk because of factors unrelated to your driving record.

Young drivers who recently received their license, for example, pay substantially more than their older counterparts. Drivers with bad credit scores are also considered high risk because insurers believe there's a greater chance they may not keep up to date with their payments. It may also be more challenging to find cheap car insurance for students since they have less driving experience. The type of vehicle you drive plays an important role, too. If you drive a car with a top safety rating, such as a Volvo or Subaru, you're far less likely to pay higher premiums than someone driving a sports car.

Car insurance providers typically view students and teen drivers as high-risk drivers since they have less experience behind the wheel, leading to a significant difference in insurance costs. For example, an 18-year-old driver has an average premium of $3,956 per year. In contrast, the average rate for a 40-year-old driver is $1,220.

Finding cheap car insurance for teens isn’t impossible, but you need to know where to look. Signing up under a parental policy may also help young drivers save on car insurance. And many insurers offer lower rates for maintaining good grades and driving vehicles with a low-risk rating.

Your credit score may affect insurance costs since insurers assume a correlation between poor credit scores and an increase in the number of claims filed. Having bad credit can make finding reasonably-priced car insurance more challenging. On average, drivers with poor credit standing paid $2,260 more in car insurance per year, nearly three times as much as those with good credit scores.

However, 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. Also, because sports cars weigh less and are smaller than a standard sedan, they tend to sustain greater damage when involved in a wreck.

For example, 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 possess a squeaky clean driving record, factors such as your credit score or type of vehicle can raise premiums. Even if you have a safe car and good credit, past violations can also hike up the cost. 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 for SR-22 car insurance. Also known as a Certificate of Financial Responsibility, this document 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 an insurance company considers you too risky, they may refuse to offer you coverage. If this happens, you should look for a residual market plan. These 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.

Lots of questions exist about getting the best high-risk insurance for individual needs. We answer some of the most common below.