Auto insurance is a crucial part of responsible vehicle ownership. But for some drivers, finding affordable coverage can be a challenge—especially if they fall into the category of high-risk auto insurance. Whether due to driving history, credit issues, or other factors, high-risk drivers face unique hurdles. Fortunately, understanding how this insurance works can help you save money and stay on the road legally.

In this in-depth guide, we’ll explain everything you need to know about high-risk auto insurance in 2025, who needs it, how much it costs, and how you can reduce your premiums.

What is High-Risk Auto Insurance?

High-risk auto insurance is a type of car insurance policy specifically designed for drivers whom insurance companies consider more likely to file claims or be involved in accidents. These drivers might have:

• A history of at-fault accidents

• Multiple traffic violations

• A DUI or DWI conviction

• Poor credit scores

• A lapse in insurance coverage

• Young age or being a new driver

• Ownership of high-performance or sports vehicles

Insurance providers label these drivers as “high-risk” because statistically, they represent a greater financial risk.

Why Am I Considered a High-Risk Driver?

No one wants to hear that they’re “high-risk.” But insurers rely on statistical data that links certain factors to higher chances of accidents or claims. Here are common reasons why someone may need high-risk auto insurance:

Driving Record

The most significant indicator is your driving history. If you’ve had multiple speeding tickets, accidents, or reckless driving charges, insurers see you as a potential liability.

DUI or DWI Convictions

Driving under the influence (DUI) or driving while intoxicated (DWI) almost always results in being labeled a high-risk driver. These infractions often require you to file an SR-22 certificate as proof of financial responsibility.

Lapses in Coverage

Having a gap in your auto insurance, even for a few months, can increase your rates. Insurers prefer continuous coverage.

Young or New Drivers

Younger drivers, especially teenagers, are statistically more prone to accidents due to lack of experience. They often fall under the high-risk category regardless of their personal behavior.

Poor Credit

Many insurers use credit scores to help determine premiums. A low credit score can classify you as high-risk, leading to higher costs.

Owning High-Performance Cars

Sports cars and high-performance vehicles usually cost more to insure because they’re more expensive to repair or replace and may encourage risky driving.

How Much Does High-Risk Auto Insurance Cost?

One of the biggest downsides of high-risk auto insurance is the cost. On average, high-risk drivers pay 50% to 150% more than standard policyholders. For instance:

• A standard policy might cost around $1,500/year.

• A high-risk policy could jump to $3,000/year or higher.

Factors influencing cost include:

• Severity of offenses (e.g., DUI costs more than a speeding ticket)

• Time since your last violation

• State laws and minimum coverage requirements

• Type of vehicle

• Coverage limits

Shopping around and comparing quotes is crucial to avoid overpaying.

SR-22 and High-Risk Auto Insurance

One term you’ll hear often in connection with high-risk auto insurance is SR-22 insurance. An SR-22 isn’t technically insurance—it’s a certificate filed by your insurance company with your state proving you have the minimum liability coverage required.

Who needs an SR-22?

• Drivers convicted of DUI or DWI

• Drivers caught driving without insurance

• Drivers involved in severe at-fault accidents

• Drivers with excessive traffic violations

SR-22s typically stay on file for 3-5 years, depending on your state.

How to Get Cheaper High-Risk Auto Insurance

Even if you’re labeled high-risk, there are strategies to lower your costs:

Shop Multiple Insurers

High-risk rates vary significantly among companies. Some insurers specialize in high-risk drivers and may offer better rates.

Complete Defensive Driving Courses

Many states offer insurance discounts for completing a defensive driving or driver safety class.

Improve Your Credit Score

If credit is a factor in your premiums, improving your score can help reduce your rates.

Drive Safely

Time heals all wounds in insurance. The longer you drive without violations or accidents, the sooner your record improves.

Consider Higher Deductibles

Choosing a higher deductible can lower your monthly premium, but remember you’ll pay more out of pocket if you file a claim.

Drop Unnecessary Coverage

If you own an older car, dropping collision or comprehensive coverage might save you money.

Companies Offering High-Risk Auto Insurance

Several well-known insurers provide high-risk auto insurance:

• Progressive – Known for competitive high-risk rates and SR-22 filing.

• GEICO – Offers specialized high-risk policies in many states.

• The General – Focuses on high-risk and non-standard auto insurance.

• State Farm – May be willing to insure high-risk drivers, though often at higher premiums.

• Dairyland Insurance – Specializes in high-risk and SR-22 insurance.

Always compare quotes before deciding.

The Impact of High-Risk Auto Insurance on Your Future

Being a high-risk driver isn’t a permanent status. Many infractions drop off your record after 3-5 years. If you keep your driving record clean:

• Your rates will gradually decrease.

• You may no longer need SR-22 filings.

• You’ll regain access to standard insurance markets with lower premiums.

Patience and safe driving are your best tools for getting out of the high-risk category.

FAQs About High-Risk Auto Insurance

Q: How long will I be considered a high-risk driver?
Typically 3-5 years, depending on the severity of the violation and state laws.

Q: Can I drive without high-risk auto insurance if I can’t afford it?
No. Driving without insurance can lead to fines, license suspension, or even jail time, and it makes future insurance even more expensive.

Q: Is SR-22 insurance the same as high-risk insurance?
Not exactly. An SR-22 is a document proving insurance coverage, often required if you’re high-risk. It’s filed by your insurer with the state.

Q: Can high-risk drivers get full coverage?
Yes, but it will cost significantly more than liability-only coverage.

Q: Does high-risk insurance cover rental cars?
It depends on your policy. Many high-risk policies offer the same rental car coverage as standard policies, but always confirm with your insurer.

Summary

High-risk auto insurance provides essential coverage for drivers considered riskier by insurance companies due to factors like accidents, traffic violations, DUI convictions, poor credit, or gaps in coverage. It’s more expensive, but options exist to reduce costs, such as shopping around, maintaining a clean driving record, and improving your credit score. While high-risk status can feel discouraging, it’s usually temporary, and safe driving habits will help you transition back to standard insurance rates over time.

Conclusion

Being labeled as high-risk doesn’t mean you’re doomed to sky-high premiums forever. Understanding the ins and outs of high-risk auto insurance empowers you to make smarter decisions, find more affordable policies, and ultimately improve your standing with insurers. Keep your record clean, compare quotes, and be proactive about improving your driving and financial habits. In a few years, you could find yourself back in the standard insurance market—saving hundreds or even thousands annually.