High Risk Auto Insurance, High Risk Driver’s Insurance, High Risk Car Insurance

By: EconomyWatch   Date: 26 May 2010

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High risk auto insurance is meant for drivers who lack good driving history or those who participate in accident-prone automobile sports. Several insurance companies offer high risk auto insurance policies to cover high risk drivers. High risk driver’s insurance policies are more expensive than the normal cover.

Who Should Buy High Risk Auto Insurance?

Insurance companies consider several factors while labeling an individual as a ‘high risk’ driver. Any individual falling in any one of the following categories should opt for high risk auto insurance:

  • If the license is suspended or revoked and requires an SR-22 insurance policy (as per US law) for restoration.
  • Drivers below the age of 20 are regarded as high risk drivers.
  • Drivers beyond 70 years of age also fall under this high risk category.
  • Those with a history of involvement in car accidents.
  • Indulgence in car racings and speed tests.
  • Individual with traffic tickets for drunken driving.
  • People with bad credit history.
  • People with several auto insurance claims over a period of time.

    • Types of High Risk Auto Insurance

    Depending on the category and extent of risk involved, high risk auto insurance policies can be of the following types:

  • SR22 insurance: This insurance policy is required by high risk drivers to reinstate a suspended or revoked license. SR22 insurance is a guarantee by the insurance company to the government that the driver has effective financial cover to overcome liabilities.
  • Assigned Risk Insurance: If no other insurance company is entertaining one’s insurance application, then states have provision to offer assigned risk insurance to the driver.
  • Bad credit car insurance: Many insurance companies refuse to offer insurance to individuals with bad credit ratings and higher claim statistics. An individual insured under bad credit car insurance is required to improve the credit rating within a specified period of time.
  • DUI auto insurance: DUI refers to driving under the influence. Most companies will cancel auto insurance if an individual is booked for this offense. However, one can buy high risk auto insurance with DUI. The cost of such a policy may go beyond 200 or 300 percent of normal auto insurance.

    • So, it is always beneficial to follow the traffic laws and avoid buying high risk auto insurance.


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