Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Jul 8, 2021

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All insurance premiums are based on risk; the likelihood of a particular action or event occurring within a certain period of time. For instance, the cost of life insurance increases as a person gets older since there is a greater chance a person will die.

People who have existing medical conditions or exhibit high-risk behaviors such as smoking will also pay more for life insurance.

Put your ZIP code in the FREE box provided to find the right auto insurance policy for you rates now!

Auto insurance companies consider a wide variety of risk factors when determining how much your annual auto premiums will be.

These risk factors take into account each driver’s circumstances as well as the type of vehicle each motorist owns and drives.

Quotes and More Quotes

Auto insurance isn’t cheap to begin with since everyone who gets behind the wheel is a risk to some degree.

Even if you’re the best driver in the world, at some point you may just happen to run into the worst driver, literally.

The sheer number of vehicles on the road every day dramatically increases the chances for accidents and injuries.

In today’s market, the lowest auto insurance premiums start at just about $1000 per year. This assumes the driver is an average adult over the age of 25 with a number of years of driving experience, and at least three years without an accident or a traffic ticket.

This typical driver would also be driving a fairly safe family vehicle like an SUV or minivan that gets low auto insurance rates, such as minivan or SUV.

Put the same driver in a Porsche 911 sports car or a Mercedes S class luxury sedan and the annual insurance rates will increase to between $2500 and $3000 per year! The most expensive car to insure in 2012 is the Audi R8 Spyder Quattro.

This sport coupe would currently cost $3834 to insure for just one year!

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The Higher the Risk the Higher the Rates

The more risk factors that are involved in the insurance company’s quote, the more you will pay for your auto policy.

Everyone is at risk of getting a traffic ticket or being involved in an accident. Insured vehicles can be damaged and passengers or other bystanders may suffer injuries in any number of ways.

The increased likelihood that these events will happen to cause damages that your insurance company will be expected to pay for, will directly influence how much you pay for auto insurance today, and for the foreseeable future.

When setting rates, insurance companies look hardest at the driver’s history over the preceding three to five years. If you’ve had even one moving violation in the past three years, or a single chargeable accident, you will likely pay more for your auto policy until enough time has passed and that violation or other mishap drops off your record.

Multiple tickets or accidents will place you in a much higher risk category. At that point, many standard insurance companies may drop you, forcing you to seek coverage from an insurance provider that offers non-standard coverage.

According to CNN Money reports, there are a number of well-known companies that will insure higher risk drivers. One of these is the Progressive Insurance Company which has grown tremendously in recent years and is now one of the five largest auto insurers in the United States.

The drivers in the highest risk auto insurance categories are generally those individuals who have been convicted of driving under the influence of alcohol or drugs.

State Farm Insurance is another company that will write insurance for these risks but at double or triple their usual rates.

As a Last Resort

If no private insurance company will take your business, there is always the state assigned risk pool, according to MSN Money.

Since each state in the US requires at least minimum liability insurance coverage for its drivers, every state funds an insurance pool which provides coverage for the highest risk drivers.

No driver may be turned down for this coverage, but it will be expensive. Assigned risk coverage can cost a driver two, three, or even four times more than regular premium rates.

Most drivers can look forward to lower premiums after several years in a high-risk category. Unfortunately, those with DUI convictions might be paying penalty rates for their insurance for up to eight years, costing many extra thousands of dollars.

Regardless of your risk category, you can find the best possible auto insurance rates for your situation by putting your ZIP code in the FREE box provided!

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