If you have been convicted of a DUI or a reckless driving charge or have been involved in a number of car accidents, insurers will consider you a high-risk driver. Unfortunately, high-risk drivers may find it difficult to find standard insurance, forcing them to carry a non-standard policy.
Non-standard policies offer the same coverages but are usually dramatically more expensive. Learn about non-standard policies – who needs them, where drivers find coverage and how to find affordable insurance for high-risk drivers.
- High-risk drivers may need to carry a non-standard policy if they can’t get a standard insurance policy.
- A non-standard policy offers the same coverage as a standard policy but tends to be much more expensive because of the elevated risk of these drivers.
- Drivers convicted of a DUI may need to file an SR-22 with the state, which proves they are carrying the legally required insurance.
- The average cost of a policy from a non-standard insurance company is 103% higher than a standard policy.
How is standard insurance different from non-standard car insurance?
In most cases, the biggest difference between standard and non-standard coverage is the cost and availability of a policy. Non-standard policies offer the same coverages as a standard policy but tend to cost quite a bit more, and not all insurers offer this type of coverage so your choices may be limited.
“Drivers end up in the non-standard, or high-risk, category due to factors like accidents, DUIs or multiple traffic violations. These drivers are considered more likely to file claims, which places them in the high-risk pool,” says Daniel Ray, CEO/founder of PinnacleQuote.
If you need non-standard insurance due to a DUI or other serious conviction, your insurer may need to file an SR-22 form with the state, which provides proof of your coverage. In these cases, expect your options to be further limited as not all insurers offer SR-22 filings.
| Coverage | Standard | Non-standard |
|---|---|---|
| Types of insurance coverage | Liability, comprehensive, collision and more | Liability, comprehensive, collision and more |
| It’s best for | Typical drivers | High-risk drivers who can’t qualify for standard coverage |
| Top insurance providers | Nationwide, Travelers, Progressive, State Farm, Geico, Allstate, Farmers, USAA | Dairyland, The General, Direct Auto, Geico, Progressive, Kemper, Founders, Safe Auto |
Standard insurance
A standard insurance policy offers all of the standard coverages for drivers considered low—to medium-risk by insurers. Low-risk drivers tend to have a clean driving record, a decent credit score and drive a safe vehicle.
Standard policies are sold by all of the large nationwide insurance companies such as Geico, Progressive, State Farm, USAA and others. According to our data, the average cost of a standard full coverage auto insurance policy is $1,895 per year, but the cost of your coverage will vary dramatically depending on your personal risk factors.
Many insurers also write preferred coverage, which is typically offered to drivers with excellent driving records and stellar credit scores. These policies tend to have the best rates and, in some cases, higher coverage limit options.
Non-standard insurance
Non-standard insurance is for drivers who are considered high-risk. While non-standard coverage offers the same protections as a standard policy, it is usually much more expensive due to the higher risk factors of these drivers.
“Non-standard insurance is more expensive because companies are taking on more risk by insuring drivers who have a higher chance of being involved in accidents,” Ray says. “Above all, these drivers have a track record that suggests a greater likelihood of future claims, and insurance companies price their policies accordingly to cover potential payouts.”
Non-standard insurance is available from many major insurance companies, but not all of them. You may need to purchase coverage from a smaller specialized insurer focusing on high-risk coverage.
DUI convictions often require drivers (or, more accurately, their insurance companies) to file an SR-22 with the DMV, proving that they carry the required amount of coverage to drive legally. If you drop your coverage after your license has been reinstated, your insurer will notify the DMV and your license will be suspended again.
Who needs non-standard car insurance?
While non-standard insurance is typically reserved for drivers with a DUI, reckless driving charge or ticket for driving without insurance, there are a number of reasons you may need non-standard insurance coverage:
- Younger drivers under 25 with incidents: Young drivers are already considered a massive risk, but if they get a ticket or are involved in an accident, they may be considered high-risk.
- New drivers: Drivers who recently moved to the U.S. and don’t have a driving record in the U.S. may need to carry non-standard coverage until they have an established driving record.
- Coverage lapse: Insurers consider a lapse in coverage a major issue and will often require drivers to carry non-standard coverage after a lapse.
- Driving infractions: Major infractions often put drivers in the high-risk category. A DUI, reckless driving, or other serious traffic offense usually puts the driver in the high-risk category. A DUI conviction often requires drivers to file an SR-22.
- Numerous accidents and claims: If you have numerous accidents and claims on your insurance record, you may need to carry non-standard coverage because finding standard coverage may be difficult to impossible. Insurers consider multiple accidents and claims as a major red flag.
- SR-22 form required: If you are convicted of a DUI or other major driving offense, you may be required to file an SR-22 form with the state, which proves you are carrying the legally required coverage. Drivers who need an SR-22 are considered high-risk and may need a non-standard policy.
- Poor credit score: While some states do not allow insurers to consider your credit score, many states do, and it can have a major impact on your premium. Statistics show that drivers with low credit scores are more likely to file a claim, so insurers charge a higher premium to cover their increased risk.
Non-standard auto insurance companies
Many of the major national insurance companies write both standard and non-standard policies. In addition to major insurers, there are dozens of smaller specialty insurers that write non-standard insurance, such as Dairyland, The General, Direct Auto, Kemper, Founders and Safe Auto.
Regardless of where you buy coverage, non-standard insurance will be more expensive than a standard policy.
Affordable insurance companies for high-risk drivers
We ran the numbers to find the most affordable insurer for high-risk drivers. While USAA has the cheapest annual premium ($2,092) for high-risk drivers, it is only available to military families and is not an option for many drivers.
Nationwide was the cheapest option with a premium of $2,585 while Travelers was a close second at $2,590. Progressive rounded out the top three at $2,916 a year or $243 a month.
See the major insurers we looked at who offer auto insurance for high-risk drivers in the table below.
| Company | Average annual cost | Average monthly cost |
|---|---|---|
| Nationwide | $2,585 | $215 |
| Travelers | $2,590 | $216 |
| Progressive | $2,916 | $243 |
| State Farm | $3,182 | $265 |
| Geico | $3,210 | $268 |
| Allstate | $3,795 | $316 |
| Farmers | $4,012 | $334 |
| USAA | $2,092 | $174 |
Cheap car insurance for drivers with poor credit
In most states, drivers with poor credit may pay more for coverage than high-risk drivers. However, in California, Hawaii, Michigan and Massachusetts, credit scores aren’t allowed as a rating factor. In the states of Alabama, Delaware, Florida, Illinois, New Mexico, Oklahoma, Texas, Vermont and Washington, a lack of credit history can’t be used as a rating factor for insurance.
The cheapest premium we found for drivers with poor credit was Nationwide at $2,259 annually, but quotes from other insurers were much higher, with State Farm coming in at $8,654 per year.
| Company | Average annual cost | Average monthly cost |
|---|---|---|
| Nationwide | $2,259 | $188 |
| Geico | $3,039 | $253 |
| Travelers | $3,053 | $254 |
| Progressive | $3,372 | $281 |
| Allstate | $4,177 | $348 |
| Farmers | $5,000 | $417 |
| State Farm | $8,654 | $721 |
| USAA | $2,737 | $228 |
The residual market: Where high-risk drivers find coverageIn some cases, it may be impossible to find coverage with a standard insurance company due to your risk profile. If this is the case, you may have to shop for coverage in the residual market in your state.
Residual market insurance is simply a state-run safety net that provides insurance for people who cannot find coverage in the standard insurance markets, because insurers deem them too risky.
Many states have FAIR Plans, or Fair Access to Insurance Requirements Plans, which are insurance pools that offer insurance coverage to people who cannot find coverage in the standard insurance market. While FAIR plans tend to focus on homeowners insurance, some offer vehicle insurance as well.
Improving your risk profile: Tips for saving on insurance
Non-standard insurance is always more expensive than a standard policy, but there can be a few ways to keep your premiums affordable:
- Move to a standard policy: The best way to lower your insurance costs is to move to a standard policy. This will often take some time and effort and how long it will be before you can move to a standard policy will vary depending on how you ended up in a high-risk category.
A DUI or other conviction will probably have a timeline for how long you will need to carry an SR-22, but issues such as multiple tickets or accidents, poor credit score or a coverage lapse may result in years of non-standard coverage. - Shop your coverage: Insurance companies rate risk differently, which can result in dramatically different premiums, even on non-standard policies. Shop both national and regional insurers, but always check the financial stability of any insurer you are considering.
- Increase your deductible: Pushing up your deductible will lower your premium for all types of policies, so if you can afford to double your deductible, you should see significant savings. Always choose a deductible you can easily afford in the event you have to make a claim.
- Improve your credit score: This can lower your rates regardless of whether you have a standard or non-standard policy. If your credit score has increased recently, contact your insurer to see if you can move to a standard policy or get a better rate.
- Keep your driving record clean: Speeding tickets will impact your rates for three years on average, but major infractions such as reckless driving or a DUI can impact your premium much longer. In Florida, a DUI is on your driving record for 75 years.
Once a ticket or other infraction is removed from your insurance record, you should contact your agent to see if you can move to a standard policy.
The bottom line
If you have been deemed a high-risk driver due to a DUI or other driving infraction, you will need to carry a non-standard policy. While non-standard insurance offers all of the same protections as a standard policy, it comes at a much higher price.
Unfortunately, in most cases, you will be paying a higher premium for years until the offenses that pushed you into the high-risk category are removed from your driving or insurance record.
Shopping your coverage is the best way to lower your non-standard coverage premium, as insurers rate risk differently. Check national, regional and specialized insurance companies to find the best rate.
Frequently asked questions
Can you switch from non-standard to standard insurance if your driving record improves?
Absolutely, you can switch whenever you can find an insurer willing to write a standard policy. If your SR-22 status is court-ordered, you may need to wait until it is no longer required.
Once a major violation has been removed from your driving record, you should be able to get a standard policy. Time frames vary depending on your insurer. Check with your agent regularly regarding your non-standard status, and make the switch as soon as you can; your premium will drop dramatically.
What happens if a standard policyholder becomes a high-risk driver?
If you have been convicted of a DUI or other major driving offense, you will most likely be moved into the high-risk category by your insurer when your policy renewal comes up. Your insurer may offer you a more expensive non-standard policy or simply decide not to renew your policy if they feel you are too big of a risk.
Regardless of the reason, once you have been moved into a high-risk category, it is a good idea to shop your coverage, as premium rates can vary dramatically.
How do insurance companies determine whether you need standard or non-standard insurance?
Insurance companies have proprietary algorithms that examine your various risk factors to determine if they are willing to offer you a policy and how much your premium will cost.
During this process (underwriting), the insurer will determine whether to offer a standard or non-standard policy and premium. In most cases, if you are required to file an SR-22, you will need a non-standard policy.
Resources & Methodology
Methodology
CarInsurance.com gathered car insurance rates from Quadrant Information Services for high-risk drivers and drivers with poor credit scores. The rates are based on a sample profile of a 40-year-old male and female driver with a clean driving record and good insurance score. To evaluate the premiums, we have compared 53,409,632 insurance quotes from 170 national and regional insurance companies across 34,588 ZIP codes.
Car insurance rates are calculated by evaluating the sample profile of a 40-year-old male and female driver with the following incidents applied:
- 1 At-fault property damage accident over $2K
- 1 At-fault property damage accident under $2K
- At-fault bodily injury accident
- DUI/DWI first offense
- Poor credit
- Speeding ticket 1-10 MPH over limit
- Speeding ticket 11-29 MPH over the limit
- Speeding 30+ over limit
These rates are for comparison purposes only; your exact rates may vary.
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