High-risk car insurance: Everything you need to know

Being labelled a “high-risk” driver can lead to shocking car insurance renewal rates, as premiums are likely to jump significantly.

Insurers deem some drivers more likely to claim on insurance due to circumstances, such as convictions, accidents or their chosen car. These higher-risk customers pay increased premiums to match the added likelihood of payouts.

Understanding what makes you high risk and taking steps to improve your rating can help secure cheaper car insurance. This guide explains what high-risk insurance is, why you may be classified as high risk and how you can get the best deals. Let’s examine the key aspects of high-risk car insurance.

High-risk insurance provides mandatory cover at an increased price for motorists classified as high risk by insurers, meaning they run a higher chance of getting into accidents and making claims. Typical reasons for high-risk categorisation include:

• Motoring convictions, such as drunk or dangerous driving, and other criminal convictions
• Multiple at-fault accidents and claims within a set period
• High-value, high-performance or modified vehicles
• Limited driving experience, as with young and new drivers
• Poor credit ratings or financial irregularities

Insurers estimate the additional risk these groups represent through statistical analysis of claims data. Anyone falling into high bands pays more – often substantially more.

Alongside driver history, insurers classify some vehicles as prone to more accidents and thefts. Models with high performance, price or modification attract higher premiums:

• Sports cars: powerful engines increase risk, so premiums are higher
• High-value cars: these cars are attractive to thieves and costly to repair, making insurance pricier
• Modified vehicles: changes such as enhanced exhausts, wheels and suspension can dramatically increase premiums
• Cars associated with young drivers: insurers associate models such as Vauxhall Corsas and Ford Fiestas with inexperienced motorists

Insurers also use risk ratings, such as the Association of British Insurers’ group rating, which classifies cars from one (lowest risk) to 50 (highest risk). Checking your car’s group will indicate the base risk level.

Drivers with motoring convictions and bans attract high premiums due to the perceived increased risk. 

Drink-driving offences result in markedly increased car insurance costs once your licence is restored. Costs reduce over time if further convictions are avoided. Dangerous driving convictions significantly push up premiums for several years. Insurers see this as predictive of future accidents. Repeat speeding offences demonstrate a disregard for road laws, hiking premiums substantially. Major licence endorsements, such as penalties for driving under the influence, require specialist insurance due to the perceived risk.

Insurers must provide coverage by law but will apply high prices to match the elevated claims risk they associate with convictions.

Yes, high premiums are typical for drivers deemed high risk due to previous claims, convictions and other markers. The increased prices aim to offset the greater chance of future payouts.

Exact figures vary widely based on the individual’s situation, but you can reasonably expect to pay at least 50 per cent more for high-risk cover after an accident or claim. 

Paying annually avoids financing fees that further raise costs. Consider higher excesses to bring premiums down. Additionally, comprehensive policies tend to penalise perceived risk less than third-party options.