Key Takeaways
- You are considered a high-risk driver if you have bad credit, a driving violation in the last five years or a lapse in coverage.
- High-risk auto insurance costs an average of $1,589 per year for minimum coverage and $4,374 per year for full coverage.
- Our top pick for the best cheap high-risk auto insurance is Travelers due to its low overall rates and great coverage selection.
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Best Cheap Car Insurance Companies for High-Risk Drivers
Below, you can compare our top picks for the best and cheapest high-risk auto insurance companies among national insurers:
- Travelers
- USAA
- Geico
- Nationwide
- Progressive
All providers presented as part of our top picks all received an 8 out of 10 or higher in our survey of over 130 providers in the United States. We then determined the companies with the best rates within the most common high-risk categories, such as being a young driver (between 16 and 25 years old) or having bad credit, a DUI, a speeding ticket or accident.
Coverage quotes were based on state minimum requirements, and for full coverage, we used a 50/100/50 split for liability coverage with a $500 deductible for collision and comprehensive coverage. All average costs presented were aggregated from quotes for the following profiles nationwide:
- 35 year olds with bad credit and no driving violations insuring a 2023 Toyota Camry
- 35 year olds with good credit and an accident in the last 3 years insuring a 2023 Toyota Camry
- 35 year olds with good credit and a DUI in the last 3 years insuring a 2023 Toyota Camry
- 35 year olds with good credit and a speeding ticket in the last 3 years insuring a 2023 Toyota Camry
- Young drivers (between 16 and 25 years old) with good credit and no driving violations insuring a 2023 Toyota Camry
In most states, having bad credit translates to higher car insurance rates. If you’re military-affiliated, USAA will have the cheapest car insurance, but otherwise, Travelers will be the most affordable option.
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| 1. USAA | $812 | $3,161 |
| 2. Travelers | $1,199 | $2,825 |
| 3. Geico | $970 | $2,891 |
| 4. Nationwide | $1,280 | $2,762 |
| 5. Progressive | $1,281 | $3,612 |
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*These rates are based on a 35-year-old driver with no driving violations who is insuring a 2023 Toyota Camry
According to our research, having a DUI on your record can boost your annual full-coverage car insurance cost by 45%. Those with DUIs can expect the cheapest car insurance rates with Travelers. However, if you are military-affiliated and only want minimum coverage, USAA will be the best choice.
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| 1. Travelers | $968 | $2,345 |
| 2. State Farm | $1,008 | $2,728 |
| 3. Progressive | $1,052 | $2,696 |
| 4. USAA | $915 | $2,852 |
| 5. Geico | $1,520 | $3,690 |
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*These rates are based on a 35-year-old driver with good credit who is insuring a 2023 Toyota Camry
Having a car accident on your record can increase your annual full-coverage car insurance costs by about 34%, according to our research. Travelers is the cheapest car insurance company overall for those with accidents and who don’t have military affiliations. However, if you are affiliated and want minimum coverage, USAA has the most affordable rates.
| Cheap National Car Insurance Provider | Average Annual-Minimum Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| 1. Travelers | $889 | $2,148 |
| 2. USAA | $692 | $2,358 |
| 3. State Farm | $1,050 | $2,807 |
| 4. Geico | $1,084 | $3,183 |
| 5. Nationwide | $1,352 | $3,031 |
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*These rates are based on a 35-year-old driver with good credit who is insuring a 2023 Toyota Camry
If you have a speeding ticket, your annual full-coverage car insurance costs are 21% higher than they would be with no tickets. With rates of $48 per month for minimum coverage and $172 per month for full coverage, USAA offers the lowest rates for those with a speeding ticket. For non-military drivers, Travelers is the most affordable option.
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| 1. USAA | $574 | $2,067 |
| 2. Travelers | $816 | $2,083 |
| 3. Geico | $835 | $2,574 |
| 4. State Farm | $974 | $2,644 |
| 5. Nationwide | $1,155 | $2,554 |
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*These rates are based on a 35-year-old driver with good credit who is insuring a 2023 Toyota Camry
Insurance companies view younger drivers as a higher risk because they have less experience on the road and are more likely to be involved in accidents. For this reason, young drivers between 16 and 25 years old are charged much more for car insurance than drivers between 35 and 65 years old.
For example, the average annual car insurance cost for a 16-year-old driver is $6,226. For 35-year-old drivers, that cost plummets down to $2,681.
In the table below, we’ve averaged costs for drivers between the ages of 16 and 25. The best cheap auto insurance for young drivers can be found with USAA, Travelers and Geico for both minimum and full-coverage policies.
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| 1. USAA | $1,240 | $3,493 |
| 2. Travelers | $1,426 | $3,456 |
| 3. Geico | $1,479 | $3,811 |
| 4. Nationwide | $2,174 | $3,978 |
| 5. State Farm | $2,212 | $5,175 |
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*These rates are based on 16 to 25-year-old drivers with good credit and no driving violations who are insuring a 2023 Toyota Camry
How Much Is High-Risk Car Insurance?
Nationally, high-risk drivers pay more for car insurance than those with clean records, good credit and ample driving experience. However, the cost for you will depend on your unique driver profile.
Below, we’ve summarized average costs for common high-risk driver profiles:
| High-Risk Driver Profile | Average Annual Minimum-Coverage Rate | Average Annual Full-Coverage Rate |
|---|---|---|
| Young Drivers (16 to 25 years old) | $2,154 | $5,296 |
| Bad Credit | $3,213 | $5,358 |
| DUI | $1,548 | $3,873 |
| Accident | $1,294 | $3,591 |
| Speeding Ticket | $1,099 | $3,235 |
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What is Considered a High-Risk Driver?
These driver profiles are the most common categories for those considered high risk:
- Younger and new drivers
- Drivers with a conviction for driving under the influence (DUI)
- Drivers with speeding tickets or other moving violations
- Drivers with at-fault accidents
- Drivers with a reckless-driving conviction
- Drivers with lapses in insurance coverage
- Drivers with bad credit scores
- Drivers with luxury, sport, or other high value vehicles
Driving violations typically only affect your rates for up to five years after the incident. More serious violations, such as a hit and run or DUI may stay on your record for a maximum of 10 years.
How To Get Cheap High-Risk Auto Insurance
Unfortunately, even the best high-risk car insurance companies will likely charge you high rates if you’re considered a high-risk driver. While you can’t just go and change your age or current driving record, there are some factors that are still within your control as you attempt to find cheap car insurance. Below, we’ll go over some tips to help you get affordable rates.
Even if you’re a high-risk driver, your state only requires you to carry minimum coverage. However, requirements from your lender or lessor may force you to purchase additional coverage, such as comprehensive and collision. Removing unnecessary coverage is an easy way to trim your car insurance bill down, so consider which coverages you can skip.
Raising your auto insurance deductible is another way to reduce your rate. You will, however, have to pay more out of pocket for repairs or a total loss. Weigh that risk alongside any savings you might receive.
Being labeled as a higher-risk driver won’t make you ineligible for car insurance discounts. Most insurers will have at least one or two discounts you can take advantage of. These are some of the most common:
- Auto pay: Set up automatic payments.
- Multi-policy: This is also known as a bundling discount, and you can often save by combining your auto policy with other products like homeowners, renters or life insurance.
- Multi-vehicle: Insure multiple vehicles under the same policy.
- Safe driver: People who keep clean driving records for a specific period of time can save on their premium.
- Good student: Take advantage of discounts for maintaining good grades in school.
- Military: Insurers offer savings for members of the military and their families.
Many insurance companies also offer a discount for completing an approved safe driving course. Completing one of these courses will reduce your rate and has the potential benefit of improving your driving skills and awareness.
California, Hawaii, Massachusetts and Michigan have laws preventing insurers from using your credit score as a factor in setting rates. In every other state, your credit score can have a major impact.
Drivers with lower credit scores typically pay higher rates for car insurance than those with better scores. Practicing good financial habits and learning how to improve your credit score can help you get better rates, even if you have multiple infractions on your driving record.
With most car insurance policies, you’ll pay a flat rate for coverage. But the best high-risk auto insurance companies offer usage-based insurance programs that charge you based on how much you actually drive your vehicle.
If you rarely need to drive or can limit your time behind the wheel, using one of these programs could be a good way to save on high-risk auto insurance. Just keep in mind that if you use your car too often, you’ll end up paying more.
Most major providers offer a telematics insurance program that can use data from your phone’s GPS or a device that plugs into your vehicle to monitor your driving habits. If you avoid risky behaviors like accelerating too quickly, slamming on your brakes or looking at your phone while driving, you’ll be rewarded with a lower rate.
However, these programs can also cause your rates to go up. If you practice too many unsafe driving habits, your car insurance could get even more expensive. Our team has also reviewed the best telematics apps.
Getting car insurance quotes from several providers is one of the most important steps in getting cheap coverage from the best high-risk auto insurance companies. As seen from our cost data, the insurer that offers the cheapest rates depends a lot on the motorist who is shopping for insurance.
Even if you’re a high-risk driver, factors other than your driving record or age will come into play. You won’t really know how much an insurance company could charge you until you get a quote. Then, compare rates to find the most affordable car insurance.
Best High Risk Car Insurance: The Bottom Line
From our research, we found the best high risk car insurance companies to be Travelers, USAA, Geico, Nationwide and Progressive. These companies have a great mix of affordable rates for high risk drivers, good customer service, discount offerings and coverage options.
High-Risk Car Insurance: FAQ
Below are some frequently asked questions about the best high-risk auto insurance options:
Based on our research, we found that Travelers typically offers some of the best rates for high-risk drivers such as those with a DUI or speeding ticket. Other companies to look into include USAA, Geico, Nationwide and Progressive.
Even the best high-risk auto insurance companies see young drivers as potentially problematic, so they charge this group high premiums. According to our data, the average rate for full-coverage car insurance for teens across the U.S. is $5,769 per year or $481 per month.
The presence of more than a few risk factors is what leads to high-risk car insurance. These can include a driver’s credit score, age or infractions such as DUIs, speeding tickets and multiple accidents.
Drivers can be in the high-risk category for insurance premiums for a variety of reasons. These include:
- Young drivers
- Drivers with DUIs
- Drivers with traffic violations
- Drivers with at-fault accidents
- Drivers who let their insurance coverage lapse
Some high-risk vehicles can have high insurance premiums compared to other vehicles. An auto insurer may consider a high-powered sports car to carry an increased risk for over-the-limit speeds, for example, and could charge more to cover it.
How We Rated the Best High Risk Auto Insurance Companies
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
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