High Risk #AUTO INSURANCE Companies
What Is a High-Risk Auto Insurance? High-risk auto insurance refers to any policy an insurance company perceives as having the potential to carry higher-than-average payouts due to claims. One of the tools for determining car insurance rates is risk classification factors, such as driving history. Progressive began as an insurance company for high-risk drivers — and even as the company’s grown to become one of the largest auto insurers in the nation, it still offers high-risk policies for most drivers.
Our analysis of best auto insurance companies in 2020 named Nationwide as the best high-risk auto insurance option for those with bad credit. The provider has a tendency to give out below-average rates across the board, and drivers with work to do on their credit score have a solid chance of keeping payments affordable.
The General markets itself as a company that will provide auto insurance policies to everyone, including high-risk drivers. In fact, The General is what the industry calls a non-standard auto insurance carrier, meaning that it's a company that specializes in covering high-risk drivers. The General offers coverage in all states except for Massachusetts, Michigan, and New Jersey—which is one reason, it's one of the best overall choices for non-standard car insurance in most parts of the country.
How We Chose the Best Auto Insurance Companies for High-Risk Drivers. We started by looking at the 59 biggest car insurance companies in the U.S. and only considered those that had strong financial strength ratings from three independent insurance rating agencies (A- or better from A.M. Best, A- or better from S&P Global, and Aa3 or better from Moody’s). A high rating from these agencies means that a company would be more than able to pay out your claim in the event of a car accident or other issue.
SafeAuto is an auto insurance company for high risk and nonstandard drivers that stated in 1993 and only offers liability, collision, and comprehensive coverage. Furthermore, it is only available in 17 states. The company’s financial strength is not rated and it does have a higher than average complaint ratio. The Facility Association, which is an insurance pool that all auto insurance companies are members of, is also an insurer of last resort for high-risk drivers. In addition, there are non-standard insurers that specialize in providing insurance for high-risk drivers.
“Some companies will assess much harsher rate penalties than others on high-risk customers, which means it's always wise to compare car insurance quotes before buying a high-risk policy.” Here is a list of some insurance companies that sell high-risk auto insurance policies: The General, a subsidiary of American Family Insurance.
Car Insurance For Drivers with Bad Records. If you've been involved in prior traffic accidents, have a history of traffic violations, or been convicted of a DUI/DWI, insurance companies often label you as a “bad driver” and make it very difficult for you to secure affordable high-risk auto insurance. Your driving record will determine if you need high risk car insurance. For example, if you've been convicted of driving under the influence of drugs or alcohol or have multiple speeding tickets or at fault accidents, you may be placed in a high risk category, requiring special high risk auto insurance.
Although a high-risk insurance brokerage is completely separate from a high risk insurance company, it is worth mentioning as you need to use a licensed broker to purchase high risk auto insurance. The same method for assessing the quality of the high risk insurance company can also be used for high risk insurance brokerages.
When a car insurance provider sets your rates, those premiums are largely based on how likely an insurer thinks you are to get in an accident or make a claim. If you’ve had a suspended license or a history of claims or accidents, some insurers will lump you into a high-risk category, which increases your insurance rates significantly. You could even be considered high risk if your car is more likely to be stolen, for example.
The following companies are the highest rated companies by the Clearsurance community that specialize in non-standard coverage for high risk drivers and have at least 50 car insurance reviews. Note: Other companies may sell to non-standard drivers, but these companies specialize in high risk auto insurance. They are able to provide the tailored insurance advice required to get drivers with a poor driving record back on the road. Sometimes only a special few Insurance companies are willing to insure High Risk Drivers.
Regardless of the type of high-risk business you own, Regal Insurance actively seeks the best high-risk commercial insurance coverage for all our Ontario clients. Regal Insurance has served the Ontario region for over 30 years as a leading provider of home, auto, life, travel, and commercial insurance. ValuePenguin sampled high-risk auto insurance rates for the largest city in each state across four car insurance companies where available: GEICO, Allstate, MetLife and Nationwide. Our hypothetical driver was a 30-year-old man driving a 2010 Toyota Camry.
It can be difficult to buy high-risk insurance as many auto insurance companies aren’t willing to offer coverage to these drivers. Many high-risk drivers turn to the Facility Association for coverage as a last resort. Some insurers specialize in providing car insurance to high-risk drivers and are considered non-standard insurers.
