If you have been classified as a high risk driver you may be wondering which companies offer high risk auto insurance coverage. There are a variety of companies available in every state, but the companies themselves vary from state to state.
That is why the best way to find which insurance companies offer high risk auto insurance coverage is to contact your state insurance department. Each state requires some of the licensed insurance companies to take on high risk drivers.
To compare high risk auto insurance quotes online just enter your zip above for free insurance rates!
What makes someone a high risk drivers?
The circumstances causing someone to be classified as a high risk driver are different in each state however, there are some standard reasons why someone would be classified in this category. There are two main reasons drivers are classified as high risk that are standard in all 50 states. This first reason is individuals with more than two guilty pleas, no contests, or convictions for violations in a one year period. This could be speeding, running a stop sign, following too close, or any other type of moving violation.
The second reason is individuals who have a no contest, guilty plea, or conviction for a DUI, DWI, reckless operation of a vehicle, a hit and run, or an injury resulting from vehicular negligent. Most states classify you as a high risk driver when you receive your first offense of a DUI or DWI, other states won’t classify you as high risk until your second DUI or DWI. Even if you are not classified as high risk because of a first offense DUI, insurance companies may still reject you with just one offense.
Another reason you may be classified as a high risk driver is because you have had several gaps in your auto insurance coverage. Each gap raises your level of risk. Also, being involved in several accidents over a short period of time, even though all those accidents may not have been your fault, will raise your risk level. People with poor credit scores or a bankruptcy are also considered high risk, even though this has little if anything to do with driving.
Once you are classified as high risk, traditional insurance will not be available to you. Your premium amounts will be significantly higher and many companies will not take you as a customer. Even if you do find a company willing to take you, you may not be able to afford the increase in rates that will result from being classified as a high risk driver.
How does the state program work?
Here is where state programs for high risk drivers come into play. If you cannot find or afford auto insurance because you are a high risk driver, you can go through your state’s high risk driver program. High risk drivers are required to file a form called a SR22. The state department of insurance typically contracts with three or four insurance companies in the state to sell policies to those with SR22 forms.
There are three different types of SR22 forms and you can choose the form that best fits your situation:
The first type is an operator’s certificate. This covers you no matter what vehicle you drive and is right for those who do not own their own vehicle.
The second type is an owner’s certificate. This covers you only when you are driving your own vehicle.
The last type is the owner-operator certificate which covers you in all vehicles including your own.
Most state department of insurance websites have a list of companies that offer coverage through the state program. This does not mean that the state is selling insurance or in any way benefiting financially from contracting with these companies. It is a service of the state to help high risk drivers get insurance and eventually lower their risk level.
Most companies involved in the state program will lower your premium costs as you show that you can pay on time, avoid moving violations, and be a responsible driver. This does not mean your insurance will be cheap. Although it will be less expensive than if you were to get insurance on your own, it will still be higher than that of drivers who are not high risk.
The best way to avoid becoming a high risk driver is to be a safe driver. However, if you find yourself in a situation that causes you to become high risk, don’t go without insurance altogether. Go to your state’s department of insurance website or you use our online car insurance comparison tool to find companies that offer high risk insurance. Enter your zip to start now!