As a high-risk driver, you already know how expensive high risk car insurance can be. Being labelled as ‘high risk’ by your car insurance company after a few mistakes is life changing. Premiums go up, options for insurance providers go down. But that being said, there are some ways to access some high risk car insurance discounts! These discounts may not necessarily make high risk auto insurance more affordable, but they will help you out while you work to repair your driving record. Let’s look at the various high risk insurance discounts you may be able to access.
What qualifies me as a high-risk driver?
A high-risk driver is someone who has three or more convictions, or a combination of a minor, major and/or serious convictions. Some examples of convictions are:
- A conviction for offences, such as driving under the influence of drugs/alcohol or reckless driving
- Multiple speeding tickets
- More than one recent at-fault collision
- Multiple claims
- Stunt driving
Other reasons that may classify you as a high-risk driver:
- Poor payment history or policy cancellation
- You are a young or new driver
- License suspension
- You’ve never been insured
- Lapse in coverage
- Type of vehicle
If you are considered high risk, your access to cheap auto insurance is limited. Instead, you must seek out high-risk auto insurance. High-risk insurance premiums are much higher than regular auto insurance.
The truth is, there’s no such thing as cheap insurance for high-risk drivers. You can expect to pay more than the average premium if an insurance company deems you a high-risk driver. The premiums may vary based on the provider, but you can expect to pay at least anywhere from 25% to 250% more than a low-risk driver.
How can I receive discounts as a high risk driver?
1. Shop around
One of the best ways to find high risk car insurance discounts is by comparing the rates of different insurers. When you compare, you’ll be able to see which ones offer the lowest rates. The reason insurance rates differ is that each company has their own internal rate calculation. If you want to compare rates right now, request a quote online in minutes with isure!
Bundle both your car and house with the same company. This can typically get you at least a 5% discount. By bundling your high risk car insurance with other policies, like home insurance, you will save money. The amount will vary depending on the policy (or policies) you bundle it with. In fact, it can range in up to hundreds of dollars in savings annually! Additionally, having more than one vehicle insured through the same company also gives you some discount options.
3. Look into Usage-Based Insurance (UBI) / Telematics
You can also enroll in a UBI or telematics program. It tracks your driving habits and if you drive well, it’ll reward you with cheaper insurance. You know, avoid hard braking, quick acceleration and speed. Telematics combines leading-edge wireless communications and global positioning system (GPS) tracking technology. Telematic devices collects and analyzes data from moving motor vehicles. UBI, or pay-as-you-drive insurance/pay-per-km insurance, involves installing a device that provides feedback on:
- The distance you drive
- The time of day when you are on the road
- When and how you accelerate and brake
- Cornering, speed and overall driving habits
Insurers track your driving behaviour in real time. The programs collect data related to how you drive, when you drive and where you drive to calculate your risk level. In a nutshell, if you pose a lower risk of accident than the average driver, you can save money on your auto insurance premiums.
Auto insurance discounts are available under a variety of conditions, ranging from life, vehicle, driving history and more. Have a look at our complete list of auto insurance discounts here.
4. Raise your deductible
Raising your deductible will have an immediate impact on your car insurance premiums. As a high-risk driver, you have a significantly higher risk of being in a situation where you’ll need to make a claim. The deductible is the amount that you must pay first before the insurance company starts to offer coverage. For example, if your deductible is set at $1,000, you pay $1,000 out of pocket for expenses and insurers cover the difference. Keep in mind that raising your deductible can put you in serious financial stress if you end up needing to make a claim. So, make sure it’s an amount you’re comfortable with.
5. Drive less
If you can change your driving habits to drive less, you can achieve some serious high risk auto insurance discounts. While it’s not always possible for some people, there are great ways to drive less. Take advantage of public transit, bicycles or carpooling as a great way to spend less time in your car. Driving less means your risk is lowered, and as such, you may be able to get cheaper high risk car insurance.
6. Pay your yearly premium upfront
Some car insurance companies offer small high risk auto insurance discounts if you agree to pay annually. By paying the entire years’ insurance on day one, you’re taking advantage of something called the ‘time value of money’. Essentially, the insurance company can better use the money now, then they will with monthly payments. As such, they reward you for the advanced payment with a small discount on your premiums.
7. Use an insurance broker
High risk insurance brokers are experts in the category and work with multiple high risk insurers. They will help you get insured and advise on how you can get back into more affordable premiums. Contact isure today to discuss your high risk insurance discounts!
8. Drive an insurance-friendly vehicle
When you drive a sports car or expensive vehicle, you may be considered a greater risk. Choose a vehicle that is known for to be insurance-friendly. Check out isure’s list of the least expensive cars to insure here.
How can I check my driving record?
Tickets hurt your ability to access cheap auto insurance in Ontario. If you want to see your driving record, you can order one online.
Is there cheap insurance for high-risk drivers?
In truth, there is no such thing as cheap insurance for high risk drivers. That being said, there is cheaper insurance with certain providers compared to others. To find the cheapest high risk insurance, you’ll need us to compare rates with a variety of our partner providers. When you submit a quote, we get results from some of the best insurance providers in the country. At isure, we believe honest people with bruised insurance records deserve a second chance. For many of the country’s big insurers, their answer will always be ‘no”. We don’t think that’s right, and that’s why we offer the largest range of high risk insurers of any insurance broker across the country. Let’s make sure you are covered and stay on the road while your driving record recovers to normal status once again.