High Risk Auto Insurance: What is it and How Does it Work?

If you’ve come across the term ‘high-risk auto insurance’, you might be wondering whether it’s a separate car insurance policy. Well, it’s not actually a car insurance policy; it’s a label used by insurers to categorize drivers who are at higher risk of being involved in an accident and are more likely to file a claim.

If you’re labeled a high-risk driver, you may no longer qualify for a standard policy and will need to buy a non-standard auto insurance policy, typically at a much higher rate. Generally, non-standard auto insurance is also known as high-risk auto insurance.

To properly understand what high-risk auto insurance is and how it works, this article explains the factors that label you a high-risk driver, how long the status lasts, the cost of high-risk auto insurance, and where you can get coverage.

What Gets You Labelled as a High-Risk Driver?

Insurers typically classify high-risk drivers based on driving records, insurance claims history, license status, driving experience, vehicle type, lapse in policy, and credit history. These elements help insurers assess how likely you are to file a claim. Here’s a detailed breakdown to help you understand how these factors can get you labelled as a high-risk driver.

Multiple At-Fault Car Accidents

If you’ve been involved in multiple at-fault car accidents, particularly in the last 3 to 5 years, there’s a high chance that you will get labelled as a high-risk driver. In fact, insurers may label you as a high-risk driver if you were responsible for even just one at-fault car accident.

Even when you are involved in a car accident in which the other driver is at fault, there’s still a substantial chance that you may get flagged as a high-risk driver. So, if you were involved in a series of at-fault accidents, there’s a strong possibility that you are now deemed a high-risk driver by most insurers.

DUI (Driving Under Influence) Conviction

Driving under the influence of alcohol, cannabis, or any mind-altering drug is illegal, and it is a violation of your car insurance policy. If you were involved in a car accident and you got charged with a DUI conviction, you can get labelled as a high-risk driver.

A DUI conviction clearly shows negligence and a lack of personal and public safety. Plus, it demonstrates that you have not been responsible enough to retain the status of a safe driver.

Reckless Driving

Reckless driving is a clear violation of the car insurance agreement. If there’s evidence that you were involved in reckless driving, your insurance claim may even get denied, and there’s a high chance that you will get labelled as a high-risk driver.

If there’s proof or conviction of multiple reckless driving incidents, such as participating in an illegal street race or pulling risky stunts, it indicates that you’re prone to causing accidents and filing future claims.

Traffic Violations

When determining car insurance rates, insurers carefully review your driving record to assess how safely you follow traffic laws. A history of repeated violations suggests risky driving behavior and can raise serious concerns for insurers.  If you’ve been cited for multiple traffic offenses such as speeding, running red lights, or reckless driving, your insurer may classify you as a high-risk driver. Even a combination of traffic violations and at-fault accidents can significantly increase your insurance premiums.

License Suspension/Revocation

Generally, insurers require you to have a valid driver’s license to get car insurance. If your license gets suspended or revoked, especially due to serious traffic violations, you may be classified as a high-risk driver. In some cases, your current insurance policy may even be cancelled.

Without a valid driver’s license, you may need to obtain an SR-22 or FR-44 certificate to prove that you meet your state’s minimum car insurance requirements. The SR-22 form is used in most states, while the FR-44 is required in Florida and Virginia. Typically, high-risk drivers are required to get an SR-22/FR-44 certificate, so if you need one, you’re classified as a high-risk driver.

Multiple Car Insurance Claims

Your car insurance claim history is the most crucial factor in determining whether you’re a safe driver or a high-risk driver. If you’ve made more than one car insurance claim in the last 3 years, there’s a strong possibility that you will be regarded as a high-risk driver.

The term high-risk driver is typically used by insurers to identify drivers who are more likely to make more claims. So, if you have a track record of multiple car insurance claims, you typically fall into the category of a high-risk driver.

Lack of Driving Experience

Teenagers and young drivers between the ages of 16 and 19 typically have the highest car insurance rates, mainly due to a lack of driving experience. According to the CDC, teen drivers may not be able to anticipate dangerous situations or make critical errors that can lead to a serious car crash.

Based on the statistics, teen drivers have a fatal crash rate that is nearly 4 times higher compared to adult drivers aged 20 and beyond. This makes the lack of driving experience a serious concern for insurers, and that’s why young drivers between the ages of 16 and 19 are generally classified as high-risk drivers.

Vehicle Type

Some cars are more prone to a significantly higher risk of accidents and theft or have higher repair and replacement costs. This includes sports cars, luxury vehicles, classic cars, and even older cars with outdated safety features.

Insurers consider these factors when assessing risk because certain vehicles are more likely to be involved in claims. For example, sports cars often encourage aggressive driving, luxury vehicles are costly to repair or replace, and classic cars may lack modern safety technologies.

So, owning a high-risk vehicle can classify you as a high-risk driver, which can significantly increase your premiums or even limit your coverage options.

Policy Lapse

A lapse in your car insurance coverage is deemed irresponsible, especially because it’s legally required in almost every state in the U.S., except New Hampshire, where you need to show proof of financial security as an alternative. A gap in your car insurance coverage is treated similarly to having a poor driving record.

So, if you have a policy lapse, you will be perceived as a high-risk driver, leading to a significant increase in your car insurance rates. According to Valuepenguin, a lapse in coverage of 30 days or less can increase your coverage by at least 8%, and if it’s more than 30 days, then your auto insurance rate can even spike to 35% or more.

Poor Credit History

Insurers may review your credit history to assess how responsibly you manage payments. A strong credit history demonstrates timely payments, while a poor credit history shows missed or delayed payments.

This information helps insurers predict whether you are likely to pay your car insurance premiums on time. Drivers with poor credit may be considered higher risk, potentially leading to increased premiums or classification as a high-risk driver.

However, it is prohibited to use credit history to determine car insurance rates in California, Hawaii, Massachusetts, and Michigan. In these states, a low credit score will not automatically label you as high-risk.

How Long Are You Considered a High-Risk Driver?

If you’ve violated traffic rules, been involved in at-fault car accidents, and claimed insurance multiple times, you may be considered a high-risk driver for 3 years, while some insurers may even view you as a high-risk driver for up to 5 years or more.  

Although this is just a general pattern, the actual length of time depends on your situation, the severity of violations, frequency of claims, location, and the insurer. Typically, an insurance provider can label you as a high-risk driver for a year, while another may classify you as a high-risk driver for 6 months, or 3 subsequent years or more.

Is it Difficult to Get High-Risk Auto Insurance?

Yes, obtaining high-risk or non-standard auto insurance can be both challenging and expensive. Many insurers are reluctant to provide coverage to high-risk drivers due to the increased likelihood of claims. However, some insurance companies specialize in offering non-standard policies that specifically cater to high-risk drivers. If you’re struggling to find coverage, don’t worry; high-risk auto insurance exists precisely for drivers in situations like yours. You need to find a reliable car insurance company that specializes in providing non-standard auto insurance coverage options to high-risk drivers.

Average Cost of High-Risk Auto Insurance

If you’re considered a high-risk driver, your car insurance rates can increase from 22% to 113% or more. The table below shows typical premium increases for various high-risk driver profiles.

Source: Bankrate | As of November 2025

Tips to Qualify as a Safe Driver and Get Lower Premiums

If you want to lower your auto insurance premium, you will have to take some steps to prove that you’re now a responsible driver. So, here are some expert tips to qualify as a safe driver and reduce your car insurance premiums.

• Maintain a clean driving record: Avoid traffic violations, at-fault accidents, and reckless driving to show insurers you are low-risk.
• Drive safely for an extended period: Many insurers reward drivers who maintain a violation-free record for 12–36 months with lower premiums.
• Take a defensive driving course: Completing a certified defensive driving or safe driving course can demonstrate responsibility and may qualify you for discounts.
• Avoid lapses in coverage: Continuous car insurance coverage signals reliability and prevents insurers from labeling you high-risk due to gaps.
• Consider vehicle choice: Driving a car with strong safety ratings and lower repair costs can help reduce premiums over time.   
• Improve your credit score (where applicable): In states where credit history affects insurance rates, maintaining a good credit score can lower premiums.
• Bundle policies: Combining auto insurance with home, renters, or other insurance policies can qualify you for multi-policy discounts.

Learn more about car insurance discounts. 

The Bottom Line: High-Risk Auto Insurance is Temporary

Regardless of the reason, you’re considered a high-risk driver; it’s important to know that it’s only temporary. You can restore your status as a safe driver and get a standard auto insurance policy at lower rates.

The most important step here is to ensure continuous car coverage to avoid a policy lapse. If you need help, you can contact us to get a quote and learn more about our high-risk auto insurance policy.

Frequently Asked Questions (FAQ)

What is high-risk auto insurance called?

High-risk auto insurance is also commonly referred to as non-standard auto insurance. This type of insurance is designed for drivers who insurers consider more likely to file claims due to factors such as past accidents, traffic violations, DUIs, lapses in coverage, or limited driving experience. Non-standard or high-risk auto insurance typically comes with higher premiums, but it ensures that drivers who might not qualify for a standard policy can still obtain coverage.

What qualifies as high-risk insurance?

High-risk auto insurance applies to drivers considered more likely to file claims, such as those with multiple at-fault accidents, DUIs, traffic violations, lapses in coverage, poor credit history, or limited driving experience.

How to get insurance if you are high-risk?

If you’re considered a high-risk driver, you can still obtain car insurance through non-standard or high-risk auto insurance providers. To get coverage, compare specialized insurers, provide accurate driving and personal information, maintain continuous coverage, and consider completing defensive driving courses to potentially lower your premiums.

Is high-risk auto insurance permanent?

No, with safe driving practices, continuous coverage, and time, you can restore your status as a safe driver and qualify for standard auto insurance at lower rates.

Do all insurers provide high-risk auto insurance?

No, many standard insurers avoid high-risk drivers, but specialized insurance companies like USA Auto focus on providing non-standard auto insurance coverage to this group.