How Can High Risk Drivers Save Money on Car Insurance?

Being declared a high-risk driver can cost you a lot of money when it comes to car insurance. Unfortunately, that reputation follows you even if you leave your original insurance provider. While your rates may be higher than most, there are still ways to save money if you are high-risk. a car driving down a street next to a tree

a car driving down a street next to a tree

What is a High-Risk Driver?

A high-risk driver is generally someone who has been declared high-risk by a current or previous insurer. High-risk doesn’t necessarily equate to a bad driver. Risk relates to how risky it is for an insurance provider to insure you. Reasons someone could be declared a high-risk driver include having:

DUIs/DWIs
Multiple traffic or speeding tickets
Not paying insurance premiums
A suspended license
Poor credit

Caught driving without insurance

Overall, insurance providers do not want to pay compensation for insurance claims if possible. If you are more likely to file a claim, especially an expensive claim, then you may pay more for car insurance.

Can High-Risk Drivers Be Denied Car Insurance?

Believe it or not, insurers are completely within their rights to deny car insurance for various reasons. If an insurer believes you are too high-risk to insure, they can deny you coverage. If you become high-risk while insured, your policy could also be cancelled.

This means that once you are declared high-risk, it can make it harder to get car insurance. You can still find insurance for your vehicle, however. Some insurance providers specialize in high-risk car insurance, so they will be able to provide a relatively affordable policy even if you have a history of bad driving or low credit.

Different Ways to Save on Car Insurance

While your driving record can have a large impact on your car insurance, there are other influences to consider that can influence your rates.

Build Your Credit

Whether you are considered a high-risk driver due to your driving habits, credit score or other, building your credit can lower your car insurance rates. You can build your credit by paying off loans and debts, such as mortgages and student loans. Some insurers may offer an additional discount for drivers who maintain good credit.

Choose Your Car Carefully

The type and value of your vehicle matters. If you are trying to save on car insurance, consider an older, cheaper vehicle as opposed to a new and expensive car. New vehicles, especially sports vehicles, often cost more to insure. If you choose a vehicle that is a few years older, you can often save money on car insurance.

Adjust Your Coverage Limits and Deductible

In general, full coverage car insurance is recommended for most drivers. If you are looking to save money, however, you may be interested in adjusting your coverage limits. Keep in mind that you will still need minimum car insurance as required by your state, but you can choose to only insure with the minimum liability amounts.

Georgia drivers, for example, must carry at least:

$25,000 bodily injury liability per person

$50,000 bodily injury liability per accident
$25,000 property damage liability

On older vehicles that no longer have a loan or a lease, you may be able to carry these coverages only. Lower coverage means lower premiums, but it also means more risk of paying out of pocket for damages and injuries in an accident.

The same rule applies to your deductible. If you raise your deductible, you may see a drop in your monthly insurance premiums. However, this means that you will pay more out of pocket after filing a car insurance claim. For example, raising your deductible from $500 to $1,000 can lower your monthly payment, but you will pay $1,000 instead of $500 before receiving compensation for a claim.

Shop Around and Compare Prices

Make sure to compare car insurance quotes in your area. Be careful of some insurers who specialize in high-risk drivers, as they may place hidden fees to make up for the risk of insuring you. Get quotes from multiple insurers before deciding on a policy. Also check ratings and customer reviews.

Ask About Discounts

Even high-risk drivers can qualify for certain car insurance discounts. Ask your insurance agent about how you can save money. Discounts to look out for include:

Low mileage discounts offer savings for drivers who drive less.
Good student discounts apply to drivers who are in school. Savings are available for drivers who keep their grades above a certain score.

Early renewal offers a discount if you renew your policy before the due date. You may also earn discounts for setting up your car insurance on an automatic draft. This cuts out filing fees and makes it less likely that you will miss a payment.
Loyalty discounts apply to drivers who stay with the same insurer for a certain amount of time.

How Can High Risk Drivers Save Money on Car Insurance?

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