High Risk Auto Insurance Rules And Requirements

Shopping for low cost insurance is made a lot harder if you need high risk auto insurance. While it is costly enough to insure a car against accidents, it is even more costly for high risk auto insurance.

Someone who needs to purchase high risk auto insurance is generally someone who has accumulated a lot of traffic violations, has had several accidents, or a young, first time driver.

Most Likely to Need High Risk Auto Insurance

Most insurance companies will have slightly different guidelines for requiring a policy holder have high risk insurance, but most are basically the same. Someone who has more than one traffic violation can be labeled as a high risk. These would include;

•Running red lights
•Not stopping at stop signs
•Reckless driving

A driver with several accidents over a certain period of time will also be labeled as a high risk. The one violation that will always qualify for high risk auto insurance is someone with a DUI or DWI.

High Risk Auto Insurance Rules

While there are no federal rules mandating that high risk insurance policy holders be held to higher premiums, many individual companies will charge more for their high risk auto insurance policies.

Some states will also mandate that a person get high risk auto insurance by the courts. This would be in the event of a high accumulation of traffic violations, or if there is a DUI involved. If it is a DUI, then an SR-22 will be issued which tells the insurance company they can legally drive, but they are to be a high risk, or a higher liability.

High Risk Auto Insurance Requirements

The requirements for high risk auto insurance are generally the same as other policies, but you are required to have more coverage than a normal liability insurance company.

The general requirements are to have full coverage including;

•Bodily injury coverage up to $100,000
•Property damage coverage
•Physical damage to the vehicle or to other people's vehicles.

A person who is labeled as high risk is also required to keep a full comprehensive insurance policy during the time they are insured by the company, or until they have accrued enough "points" for a lower policy rate.


When someone who has had high risk auto insurance has been able to keep a clean record, pass a defensive driving course, and not be involved in an accident can qualify for special rewards offered by the insurance company.

These rewards, or bonuses, can help to lower the policy from a high risk to a general policy. In the event that a young driver has turned 20 without any type of violation, they are then able to lower their policy to a less expensive one.

High Risk Auto Insurance - A Necessary Evil

While some people do not like to have the label as 'high risk', it is something that can eventually help someone. For instance, if a person has a tendency to speed, it can slow them down so they do not get any more tickets.
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