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...

Full Bio →

Written by

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...

Full Bio →

Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Jun 3, 2019

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance-related. We update our site regularly, and all content is reviewed by auto insurance experts.

An auto insurance loan is a loan, usually to high risk drivers, that is provided to pay car insurance policy premiums.

Some loan companies specialize in marketing their loan products to drivers who pay high premiums on their car insurance policies.

Even if you must obtain an auto insurance loan to pay your high risk driver premiums, use an online comparison tool to find the best car insurance policies and rates for your needs.

Just enter your ZIP code into the FREE tool!

Auto Insurance Loan Interest

The interest on auto insurance loans is usually quite high.

The driver’s best bet is to either ask the insurance company to break their large premiums down into smaller monthly payments, or to find another way to pay the large premiums when they come due.

Auto Insurance Loan Providers

Some companies that provide auto insurance loans offer other types of high-interest loans to individuals with less than perfect credit.

Most car insurance loans carry a high-interest rate so if there is any way the driver can avoid taking out an auto insurance loan, they should opt to avoid a loan of this type.

Many payday loan companies offer auto insurance loans. The interest for an auto insurance loan from a payday loan company is usually very high.

In addition, an auto insurance loan from a payday loan company will accrue interest at a faster rate than a loan from a finance company.

For example, a payday loan company may charge interest every week or every two weeks that the loan is pending.

Certain companies specialize in providing high risk drivers with auto insurance loans.

Insurance Payment Plan, Inc., Central Acceptance Co., Gebco Insurance Associates Inc., Agency Services, Insurance Billing Services, Senate Acceptance Corporation, U.S. Capitol Associates and Premium Finance of America, Inc. are names of various companies that primarily provide auto insurance loans for drivers to use to pay their auto insurance premiums.

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

How Auto Insurance Loans Work

Auto insurance loans are applied for when a high-risk driver applies for an insurance policy in some states. When the driver signs the car insurance policy agreement, they are also provided with a loan agreement from an auto loan financing company.

The driver then pays loan installments to pay off the auto insurance loans instead of paying premium payments directly to the car insurance company.

Though some high-risk drivers may need to obtain help from an auto insurance loan provider for a short time, the goal should be to maintain a good driving record until points are removed from their drivers’ license and be reclassified to a driver with a standard level of risk.

Once damaging points are dropped from the drivers driving record, they are once again able to obtain better rates for car insurance, and should no longer require the services of an auto insurance loan finance company.

If you are currently a high-risk driver, find out when points will begin falling off of your driving record.

Call the state’s Department of Motor Vehicles and get the specific dates when the points were added to your record.

With this information, you will be able to calculate when the points will be removed from your record.

What is a “Point” on A Driver’s Record?

A point on a driver’s record is a negative mark. Each time a driver receives a traffic citation, they receive a point against their drivers’ license. For example, running a red light will get one point on a driver’s record.

You may be able to keep the point from being applied to your record by taking a defensive driving course. However, most states will only allow this action once per year or less.

More serious driving offenses, such as a DUI or a hit and run, will apply two points on a driver’s record.

A point for a non-serious offense stays on a driver’s record for 36 months. For a serious offense, the points may last for up to 10 years.

Can High-Risk Drivers Save on Auto Insurance?

High-risk drivers, just like any other driver, may save money by shopping around for the best rates for their auto insurance policies. To shop around for the best policy, compare similar policies offered by different insurance companies.

With the newer online tools available that allow you to instantly compare auto insurance quotes, shopping around for car insurance, even insurance for high-risk drivers, is much less time-consuming than ever before.

Navigate to one of the online comparison tools and enter your zip code. Complete any additional questions that are presented in the questionnaire.

You will be provided with a list of auto insurance companies that provide coverage for drivers in your region.

Request a free quote from each company to get the best rates available, even for car insurance for higher risk drivers.

Use the FREE car insurance comparison tool to get the best policy and rates whether you need high-risk driver insurance or any type of car insurance.