Cheap Full Coverage Car Insurance For High Risk Drivers

Finding cheap full coverage car insurance can be a real challenge if you are considered a high-risk driver due to factors like poor credit, an accident history, or lack of continuous insurance coverage. Full coverage policies that include collision, comprehensive, and liability coverage are the most expensive options. 

It’s possible to find more budget-friendly rates if you put in the time to properly shop and compare quotes. In this article, we go over ways high risk drivers can save more and what insurers have the best rates. 

Average Full Coverage Auto Insurance Quotes for High-Risk Drivers

The quotes above are for a 30-year-old single male with a DUI on record and poor credit (a 580 score). The full coverage policy limits are 100/300/100 with a $500 deductible. As you can see, premiums from mainstream insurers range from around $2,500 to over $4,000 annually. Specialty insurers that provide coverage to high risk drivers like The General are typically the most expensive.

Which Insurance Companies Offer The Cheapest Rates for High-Risk Drivers?

The cheapest insurers for high risk drivers are typically lesser-known regional and national companies you may not be familiar with. Here are some to consider:

• Direct Auto – Specializes in non-standard policies with monthly payment plans.
• The General – Caters to drivers unable to get insurance elsewhere.
• Stillwater Insurance – Focus on minimum liability policies for high-risk drivers.  
• GAINSCO – Competitive pricing for drivers with DUIs and accidents.
• Infinity Auto Insurance – Known for affordable coverage for high-risk applicants.
• Highpoint Insurance – Caters to drivers with tickets, accidents, DUIs.
• Freeway Insurance – Offers policies with low down payments.
• Power of My People – Non-standard insurer with policies starting at just $29/month.  

To help find the best match, it’s important to get rate comparisons from both standard and non-standard carriers. While the mainstream companies may seem out of reach premium-wise, some of the smaller insurers can offer surprisingly competitive pricing due to specializing in higher-risk coverage.

Factors Affecting Car Insurance Premiums for High-Risk Drivers

How Your Driving Record Affects Premiums

Your personal driving history will be one of the biggest factors determining your rates. Violations like at-fault accidents, DUIs, reckless driving citations, and frequent speeding tickets are all red flags that will result in much higher premiums. 

Getting just one DUI can increase your annual premium anywhere from 50% all the way up to 300% depending on the insurer.

If you caused an accident that resulted in injuries or major vehicle damage, you could be looking at rate hikes of $500 more per year.

Multiple violations will only compound your high-risk status even further. The more recent the incident, the larger the impact it will have on your rates. Major violations typically stay on your record for 3 years, while minor tickets fall off after 3-5 years. 

The single best way to obtain more affordable full coverage car insurance is to keep a clean driving record free of citations, crashes, and claims. But if you do have violations, look for insurers that specialize in giving high risk drivers a second chance.

How Does a Driver’s Credit Score Affect Rates?

Insurers use credit-based insurance scores derived from your credit report history to predict the likelihood of claims being filed in the future. Statistically, drivers with lower credit scores tend to file more claims. Thus, people with poor credit are deemed higher risk and charged higher premiums by most major insurance companies.

The most heavily weighed factors from your credit history that impact insurance scores include:

• Number of open credit accounts
• Total outstanding debt 
• Length of credit history
• Number of late payments
• Number of collection accounts
• Bankruptcies

How Much Impact does your Credit Score have on Insurance Rates?

Generally speaking, someone with very poor credit (scores below 600) will pay 67% higher premiums on average compared to drivers with excellent credit (scores above 800).

For example, a sample 25-year-old driver with poor credit may pay $4,300 annually for full coverage based on quoted rates from 10 major insurers. But with excellent credit, that same driver would only be charged around $2,300 per year for the identical policy. That’s a potential savings of $2,000 per year.

Improving a bad credit score to at least an average score can potentially save you $500 to $1,000 or more per year on car insurance premiums. That makes it well worth the effort and time if your credit needs work.

How Accident Claims Impact Premiums

An at-fault accident that results in a paid claim will almost certainly lead to a rate increase at renewal time. Insurers consider drivers that cause accidents to be higher risk and charge accordingly. But just how much your rate goes up depends on factors like:

• Number of claims – Multiple accidents means multiplied rate hikes. Some insurers may even drop customers with more than 3 claims in 3-5 years.
• Severity of claim – Major payouts for extensive vehicle damage, injuries, lawsuits, etc. result in larger increases. Minor fender benders have less impact.
• Time between claims – Back-to-back claims amplify rate hikes versus several years apart.
• Your previous driving history – Clean history can mean more lenient increases versus multiple priors.

To give an idea of potential increases, getting in one at-fault crash with a moderate $10,000 claim payout could raise your premium by 40-50% with most large insurers based on sample quote data. That could hike the annual cost of a full coverage policy from, say $2,000 to $3,000, for example. And those higher rates will apply for the next 3 to 5 years, typically until the accident falls off your driving record. 

How to Avoid Great Increases after an Accident?

The single most effective way to avoid sharp rate hikes after an accident is to reduce or eliminate claim payouts by:

1. Paying out-of-pocket for damage repairs if minimal and affordable
2. Negotiating claim payouts as low as reasonably possible
3. Avoiding unnecessary medical costs and treatments  

While you should always get needed medical care following an accident, overly ambitious billing by certain health providers can drive up claim costs. Discuss treatment options and costs upfront to help minimize the claim amount.

Tips on How to Get Cheap Full Coverage Car Insurance for High Risk Drivers

1. Compare quotes from at least 10 different insurers – Premiums can vary dramatically between insurance companies, so it pays to get a wide range of quotes. Make sure to compare the exact same coverage limits and deductibles.
2. Increase your deductible – Choosing a higher deductible, like $1000 instead of $500, can shave 15% or more off your premium. Just be sure you have savings to cover the higher out-of-pocket costs if you file a claim.
3. Ask about discounts – Most insurers offer some discounts like multi-policy, good student, defensive driver, etc. Find out what discounts you may qualify for to lower your premium.
4. Improve your credit score – Insurance companies charge higher rates for poor credit. Improving your score could save you hundreds per year.
5. Consider dropping comprehensive and collision coverage if your car is older – For older cars, it may make sense just to carry liability coverage. Comp and collision can account for up to 50% of the policy cost.
6. Shop for cheaper quotes every 6 months – Rates change all the time, so regularly checking for cheaper pricing ensures you don’t overpay.
7. Inquire about usage-based plans – Some insurers offer telematics plans where your rates are based on actual driving habits tracked by a device in your car. This allows good drivers to save.
8. Ask about discounts for taking a defensive driving course – Brushing up on your driving skills shows insurers you are a lower risk.
9. See if a family member has cheaper insurance you can be added to – Young drivers may save by being on a parent’s policy.
10. Maintain continuous auto insurance coverage – Laps in insurance lead to much higher rates. Keep your insurance active.

Bundling Home and Auto For Added Savings

One additional smart strategy for high-risk drivers seeking maximum savings is bundling home and auto policies together with the same insurer. Most insurance companies that sell both home and car insurance offer generous bundling discounts.

The savings can range from 10% up to 30% off your total premium when you insure both your home and vehicle through the same carrier. That adds up to big savings, especially on costlier full-coverage auto policies. Even if the bundle discount offered is only 15%, that would equate to roughly $375 per year in savings on a $2,500 policy.

Some insurers like State Farm, Allstate, and Farmers are particularly aggressive with bundle discounts. And the best part is that the auto portion of the bundle will still provide coverage even for higher-risk drivers, as long as you qualify for the homeowner’s or renter’s coverage. 

Bundling home and auto with the same insurer allows high-risk drivers to benefit from considerable premium reductions, while still getting the full coverage protection their specific driving situation demands. Just be sure to compare bundle quotes for maximum savings.

Maximizing Savings by Comparing Quotes  

At the end of the day, the absolute best way to get rock bottom pricing on full coverage car insurance as a high-risk driver is to compare quotes from as many different insurers as possible. 

Each insurance company assesses risk factors differently, so no single carrier will universally be the cheapest for every unique driver. You need to cast a wide net and get quotes from national brands, smaller regional companies, and non-standard insurers to uncover the best deal.

Be sure to provide the exact same coverage specs, limits, and deductibles to each insurer for quoted rates so you can properly compare apples to apples.

Important Tips for the Quoting Process

• Provide complete and accurate details about your age, driving history, vehicle, usage, address, and any other requested info. Botched applications can hamper your rate. 
• Quote the same limits and deductibles each time. Coverages like uninsured motorists, roadside assistance, rental reimbursement, etc. should also match exactly. 
• Try both online quotes as well as contacting local independent agents who can provide quotes from multiple insurers.
• Ask about all available discounts to maximize any savings opportunities.
• Consider bundling home and auto policies if you own a home.
• Check premiums every 6 months for cheaper car insurance rates as insurers adjust pricing frequently.

Getting Stuck with a Higher Rate

There are certain undesirable scenarios like rapid rate increases or policy non-renewal that high-risk drivers need to be prepared for when shopping for affordable coverage:

• Significant rate hikes at renewal – It’s not uncommon to see premiums jump 25% or more at renewal time after an accident, ticket, or claim.
• Moving violations resulting in non-renewal – Some insurers will not renew policies after major infractions like a DUI. This often forces finding a new insurer at a much higher rate. 
• Sudden rate spikes after underwriting review – If an insurer re-evaluates your policy application, they may realize you are at a higher risk than first determined and spike your rate. This especially occurs if you withheld info or downplay your risk factors.
• Much higher rates after a gap in coverage – Lacking continuous auto insurance makes you an even higher risk. Expect steep rate hikes if you have a coverage lapse.

The key is not being caught off guard by these scenarios. Carefully review any notification letters about policy changes and shop around immediately if hit with a large rate increase to find cheaper car insurance rates. Also, be 100% truthful when applying to maximize the accuracy of your original quoted premium.

Final Takeaways on Cheap Full Coverage Car Insurance for High Risk Drivers

While high-risk drivers pay more than lower-risk motorists, there are actions they can take to improve their risk profile and get cheaper rates later on. Being labeled a high risk driver means higher rates. There’s a big gap in rates between insurers, so it’s smart to compare ten or more quotes. 

Raise your deductible and take advantage of discounts to save even more. Shop smart and find an insurer that provides the coverage and customer service you need at a price you can afford.