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Tips to find affordable car insurance for high-risk drivers

Jodie Humphries avatar
Jodie Humphries
- 4 min read
Tips to find affordable car insurance for high-risk drivers

The premium on your car insurance depends on how risky the insurance company perceives you and the possibility of filing a claim in the future. Insurers adopt different measures to determine the risks and some of the common factors that determine the car insurance premium include your age, gender, frequency of driving, claims history, and driving experience and history.

If you have a history of traffic infringements or suspended license or made several claims, you may be categorised as high-risk, which can substantially increase the cost of car insurance. The type of car and other factors can also increase your riskiness and impact the car insurance premium.

Disclaimer

This article is over two years old, last updated on June 2, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent car insurance articles.

Can high-risk drivers get insurance cover?

Even if you’re perceived as a high-risk driver, you can still get car insurance cover albeit at a higher premium. While looking for high-risk car insurance in Australia, it’s important to disclose all relevant information about your driving and claims history. If you withhold this information, it may void your cover later.

Different insurers treat high-risk drivers differently. Some insurers may have stricter restrictions and charge higher premiums when compared to other companies. You can consider smaller coverage like a third-party cover only. Getting multiple high-risk car insurance quotes and comparing what is covered and what isn’t is important to make an informed choice.

How to reduce your premium cost?

How to find cheap car insurance for high-risk drivers?

  • When you’ve added demerit point
    Car insurance approval depends on the number of points and types of violations. Most insurers accept demerit points from one minor speeding ticket but serious violations can make you ineligible for car insurance. Taking defensive or safety courses may help lower the rates after accumulating points.

  • When you’ve been in an accident
    If you have a high-risk status due to one or more car accidents, one option to find the most affordable car insurance is to compare policies offered by specialised high-risk car insurance companies. Be honest about accidental history to avoid possible denial of future claims.

  • When your coverage has lapsed
    If you’re not insured for a longer period, you may pay a higher premium. You can ask your former insurer to reinstate the cover without increasing the premium. You may re-evaluate your cover after six months of safe driving and see if you qualify for a lower premium or get added to a family member’s policy if you live with them.

  • When your licence has been suspended
    If your license is suspended for a driving-related offence, you may pay a higher premium to insure a car when you legally cannot drive. If you plan to park your car, check if your insurance company is willing to reduce the coverage to a minimum like liability insurance only.

  • When you have a drink-driving conviction (DUI)
    Some insurers may not be willing to provide you coverage after a DUI, but it is not impossible. The rules related to how long you are considered a high-risk driver after a DUI conviction may vary from one state to another. 

For example, some companies may be willing to provide you insurance if you only have one DUI offence. Generally, DUI stays on record for 10 years but in some states, it isn’t removed unless you give limited access or have it removed. You may want to consider taking a safe driving course to boost your chances of approval by the insurer. 

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Product database updated 16 Jun, 2024

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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