How Much Is High-Risk Insurance a Month?

High-risk insurance addresses coverage for individuals or situations perceived by insurers to have an elevated likelihood of claims. While there is no single, fixed monthly price for high-risk insurance, its cost is highly variable, influenced by factors unique to each driver and their circumstances. This article clarifies what constitutes high-risk insurance and the elements that determine its monthly premium.

Defining High-Risk Insurance and What Makes You High-Risk

High-risk insurance, often called “non-standard” auto insurance, is designed for drivers who do not qualify for standard rates. Insurers view these drivers as posing a greater potential for future claims, requiring specialized coverage. Higher premiums for non-standard policies compensate insurers for this increased risk.

Several common reasons lead to an individual being classified as a high-risk driver. A poor driving record is a primary factor, encompassing infractions such as multiple speeding tickets, at-fault accidents, or serious violations like driving under the influence (DUI/DWI) or reckless driving. Accumulating too many points on a driving record signals a higher risk.

Lack of driving experience also contributes to a high-risk designation, including young or new drivers, and individuals with a significant lapse in coverage. Certain vehicle types, such as high-performance cars, luxury vehicles, or models with high theft rates, can also lead to higher insurance costs. A history of driving without insurance can also result in a high-risk classification.

Credit history can influence risk assessment in many states, as insurers may use credit-based insurance scores. A lower credit score can indicate financial instability, leading insurers to view an individual as a higher risk. Geographic location also plays a role, with areas experiencing higher accident rates or vehicle theft often leading to increased premiums.

Factors Influencing High-Risk Insurance Costs

The monthly cost of high-risk insurance can vary considerably, with averages for high-risk drivers ranging from approximately $209 to $234 per month. Some may pay significantly more depending on their specific profile. Full coverage for non-standard drivers might range from $1,800 to $3,500 per year, while minimum coverage could be $900 to $2,000 annually.

The severity and number of driving infractions are among the most impactful determinants of cost. Multiple or severe incidents, such as DUI convictions, can lead to substantial premium increases, sometimes nearly doubling the cost of coverage. Even minor traffic tickets can raise premiums, and repeated offenses signal higher risk.

Vehicle type also affects premiums. Factors like the car’s make, model, year, and safety features contribute to the overall insurance expense. Choosing higher liability limits or adding comprehensive and collision coverage will increase the premium. Opting for a higher deductible typically lowers the monthly cost.

A driver’s age and experience continue to influence rates, with young or inexperienced drivers often facing higher premiums due to their statistical likelihood of accidents. Geographic location can impact rates; urban areas or those with higher crime rates or traffic density generally result in elevated costs. Credit-based insurance scores are used by most insurers in many states, meaning a lower score can lead to higher premiums.

The specific insurance company chosen can lead to varying quotes for the same driver. The length of the high-risk period can influence costs; premiums may decrease over time if a driver maintains a clean record.

Strategies to Reduce High-Risk Insurance Premiums

Individuals categorized as high-risk can implement several strategies to lower their monthly insurance premiums. Improving one’s driving record is a primary step, involving consistently practicing safe driving and avoiding further incidents. Taking a defensive driving course can sometimes lead to premium reductions. These courses demonstrate a commitment to safer driving.

Shopping around and comparing quotes from multiple insurance providers is another effective strategy. Not all insurers offer non-standard policies, but exploring options, including companies specializing in high-risk policies, can help uncover more affordable coverage.

Choosing a vehicle that is less expensive to insure can also reduce costs. Older, less powerful, or highly rated safety vehicles typically have lower premiums compared to high-performance or luxury models. Adjusting coverage levels and deductibles also offers avenues for savings. Increasing the deductible can lower the monthly premium. Reducing optional coverages, such as collision or comprehensive on older vehicles, can also decrease costs.

Seeking out available discounts can also provide savings. Common discounts include multi-policy bundling, low mileage, or participation in telematics/usage-based programs. Good student or professional affiliation discounts may also be available. Maintaining continuous insurance coverage, without lapses, can signal responsibility to insurers and help avoid higher premiums. Improving one’s credit score can positively impact insurance rates in states where credit history is a factor.