High-risk car insurance is typically more expensive because it covers drivers who are considered to have a higher chance of filing a claim. Whether due to a history of accidents, multiple traffic violations, or other risk factors, this type of insurance can put a strain on your budget. Fortunately, there are several steps you can take to lower your high-risk car insurance premiums and make it more affordable.
1. Improve Your Driving Record
One of the most effective ways to lower your high-risk car insurance premiums is by improving your driving record. Insurance companies consider your past driving behavior when determining your rates, and a clean driving history can significantly reduce your premiums. If you’ve had a history of accidents or traffic violations, insurers will view you as a higher risk, which means higher premiums.
To improve your driving record, focus on:
- Avoiding Accidents: Ensure that you follow traffic laws and drive defensively. Even a minor accident can affect your rates.
- Obeying Traffic Laws: Avoid speeding tickets, DUIs, or any other violations that could make you appear more risky to insurers.
- Wait for Points to Expire: Traffic violations typically stay on your record for a certain period. In many states, the points for minor violations will expire after a few years, which will result in lower premiums once they are removed from your record.
By driving responsibly, you’ll demonstrate to insurers that you’re a lower risk, which can lead to discounted rates over time.
2. Take a Defensive Driving Course
Many insurance companies offer discounts for drivers who complete a defensive driving course. These courses teach safe driving techniques and strategies to prevent accidents, which can help lower your perceived risk as a driver. For high-risk drivers, taking a defensive driving course can be a simple and effective way to reduce premiums.
In addition to lowering your insurance rates, defensive driving courses can also make you a safer driver. You’ll learn valuable skills for handling hazardous situations, improving your awareness on the road, and avoiding common driving mistakes. Completing the course typically results in a certificate, which you can provide to your insurer for a discount.
3. Increase Your Deductible
Another way to reduce your high-risk car insurance premiums is by increasing your deductible. The deductible is the amount you pay out-of-pocket before your insurance kicks in to cover the cost of an accident or claim. By raising your deductible, you take on more risk in the event of an accident, but in return, your insurance premiums will decrease.
For example, if your current deductible is $500, raising it to $1,000 can significantly reduce your monthly premium. However, it’s important to ensure that you can afford to pay the higher deductible if you need to file a claim. Before making this change, assess your financial situation to ensure that you can handle the increased out-of-pocket costs if necessary.
4. Shop Around for the Best Rates
Not all insurance companies treat high-risk drivers the same. Some insurers specialize in providing coverage to high-risk drivers and may offer better rates or more flexible terms. To ensure that you’re getting the best possible deal, it’s important to shop around and compare quotes from different insurance companies.
Consider reaching out to multiple providers and getting quotes tailored to your specific situation. Be sure to compare not only the premiums but also the coverage limits and policy terms. Even if you’ve been with the same insurer for years, it might be worthwhile to explore other options that could offer you more affordable rates. Online comparison tools and insurance brokers can help you find the best deals quickly.
5. Look for Discounts
While high-risk drivers generally have fewer discounts available, many insurers still offer various savings that can help reduce your premiums. Some common discounts include:
- Multi-policy Discount: If you bundle your car insurance with another policy, like homeowners insurance, you may qualify for a multi-policy discount.
- Low Mileage Discount: If you drive less than the average person, some insurers offer discounts for low-mileage drivers.
- Good Student Discount: For young drivers, maintaining good grades in school can result in a discount on your car insurance.
Be sure to ask your insurance provider about any discounts you may qualify for. Even as a high-risk driver, you may still be eligible for savings that can help lower your premiums.
6. Consider Usage-Based Insurance (UBI)
Usage-based insurance (UBI) is an innovative way to lower your car insurance premiums, especially for high-risk drivers who don’t drive often. UBI programs use telematics devices to monitor your driving behavior, such as how often you drive, how fast you go, and how safely you drive. If you demonstrate safe driving habits, you could qualify for lower premiums.
UBI programs are particularly useful for drivers who don’t drive long distances or those who mainly drive during non-peak hours. By participating in a UBI program, you may be able to significantly reduce your rates while improving your driving habits.
Conclusion
While high-risk car insurance premiums can be higher than average, there are several ways to lower them. Improving your driving record, taking defensive driving courses, increasing your deductible, shopping around for the best rates, looking for discounts, and considering usage-based insurance are all effective strategies to reduce your premiums. By taking these steps, you can lower the cost of your high-risk car insurance while maintaining the necessary coverage.