High-risk car insurance

Even if you're considered a high-risk driver you can still get covered. Here's how to keep the costs down.

If you’ve had a suspended license or have a history of traffic infringements, you might be lumped into an extra-high-risk category, raising your premiums even higher on top of the normal risk factors. In addition, your risk factor might be further compounded by the type of car you’re driving. Altogether, these and other risk factors make a substantial difference to your premiums.

Some quick tips:

You can still get insurance if you're considered by insurers to be a high-risk driver. Here are some quick tips that may increase your chances of finding an insurer that will cover you:

    • It's a good idea to steer clear of any of the notoriously cheaper insurers. They tend to keep their premiums down by avoiding covering high-risk drivers.
    • Many insurers will generally cover high-risk drivers, provided you don't have any other convictions related to fraud, theft, and dishonesty.
    • Consider undertaking a safe driving course or installing an interlock system - insurers look upon efforts like these favourably.

Find cover even if you're a high-risk driver

Each insurance brand will have an assessment criteria for applicants. It is crucial that you disclose all details to your insurance brand that may impact whether or not cover may be provided.
Name Product Roadside Assistance Accidental Damage Storm Choice of Repairer Agreed or Market Value
Market
Save 24% on your policy if you've been claim free for 3 years.
Optional
Optional
Agreed or Market
Buy online and save 15%.
Optional
Agreed or Market
Emergency roadside assistance included in Comprehensive policies.
Agreed
Buy online and save up to 10% on your policy.
Optional
Optional
Agreed
Save 15% when purchasing online. Plus receive up to 10,000 Velocity Points when purchasing a new eligible policy by 5 June 2019. Min 6 months policy. T&C’s apply.
Optional
Agreed
Save up to 10% when you buy online.
Optional
Agreed or Market
Transforms your driving so it's 100% carbon neutral.
Optional
Agreed
Save up to 20% when you buy online. Save 5% if you have a seniors card.

Compare up to 4 providers

Name Product Fire and Theft Roadside Assistance Personal Effects Accidental Damage Choice of Repairer
Optional
$0
Buy online and save 15%.
$750
Optional
Emergency roadside assistance included in Comprehensive policies.
$0
Save on your premium if you choose to restrict your cover to drivers aged 25 years or over.
Optional
$0
21-day money back guarantee if you change your mind and haven't made a claim.
Optional
$500
Save up to 10% when you buy online.
Optional
$500
Transforms your driving so it's 100% carbon neutral.
Optional
$500
Save up to 20% when you buy online.

Compare up to 4 providers

Name Product Legal Liability Roadside Assistance Pay Monthly At No Extra Cost
$20,000,000
Save 24% on your policy if you've been claim free for 3 years.
$20,000,000
Optional
Buy online and save 15%.
$20,000,000
Emergency roadside assistance included in Comprehensive policies.
20000000
Save on your premium if you choose to restrict your cover to drivers aged 25 years or over.
$20,000,000
Optional
21-day money back guarantee if you change your mind and haven't made a claim.
$20,000,000
Optional
Save up to 10% when you buy online.
$20,000,000
Transforms your driving so it's 100% carbon neutral.
$20,000,000
Optional
Save up to 20% when you buy online.

Compare up to 4 providers

What makes someone a high-risk driver?

Generally, different insurers will have their own driver categories. Some might have three different tiers (low, medium and high risk) while others might take a more nuanced approach with additional categories and the consideration of more factors.

Your category will affect your premiums, and your category is generally determined by a combination of risk factors, which can both raise and lower your premiums by different amounts. It can be a good idea to get a solid understanding of the factors affecting car insurance premiums, so you can easily pick out ways to reduce your costs. Some of the following factors can bump your risk level up:

  • Being a learner driver or on P plates
  • Having a history of speeding, DUIs or other violations
  • Spending a lot more time on the road than other customers
  • Having a high-powered car
  • Having made a lot of car insurance claims in the past

If you’ve been lumped into a high-risk car insurance category, there’s no magic bullet for more cover at lower cost. It’s worth comparing cover from a range of providers and if necessary, speaking with a specialist car insurance provider.

How to reduce the risk and cut your costs

The following are some of the major steps you can take to reduce premiums:

  • Keep an eye out for discounts. Some brands offer discounts as high as 25% just for taking out cover online.
  • A different policy. You can choose a third party property damage only policy or a third party policy with fire and theft cover. This means giving up the benefits of comprehensive car insurance, but it can greatly reduce the cost of a policy.
  • Drive less. You might start taking public transport and get rides whenever you can, so you don’t drive unless you really need to. There are pay as you go car insurance policies which let you nominate a kilometre limit per policy period, which can give you reduced premiums for staying within it. If you need to go over your kilometre limit, you can top up your policy on a case by case basis.
  • Choose a higher excess. This has a major effect on your premiums. You might choose an unpleasantly high excess and then save your car insurance for the really important claims, like liability costs or a total loss.
  • Park off the street. A lot of car insurance claims come from someone damaging your car overnight. Some insurers may offer lower prices to people who park cars off the street, preferably under cover or inside a lockable garage.
  • Remove any modifications. These add to the overall value of a car and to your premiums.

You can also find multiple ways to stack smaller discounts on top of each other.

  • Nominate a driver. Depending on the policy, you might be able to reduce costs by specifically nominating yourself as the only driver.
  • Pay premiums annually. If possible, it often costs less overall to pay premiums in annual instalments rather than doing it monthly or fortnightly.
  • Use security devices. A lot of insurers will extend discounts to you if your car has certain security devices.
  • Use market value. It’s usually cheaper to insure a car at market value instead of agreed value.
  • Look for a multi-policy discount. If you have other forms of cover with one provider, you are often able to get a multi-policy discount, to the tune of 5-10%, by taking out car insurance with the same insurer.
  • Complete a defensive driving course. Even if you don’t need it, having a driving certificate can mean lower premiums with some insurers. Generally, courses need to be approved by the insurer.
  • Buy online. Significant discounts may be available for signing up online.

Get the latest car insurance news

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

4 Responses

  1. Default Gravatar
    RyanJanuary 17, 2019

    Is there any insurance companies that will insure you if you have denied a claim?

    • finder Customer Care
      JohnJanuary 18, 2019Staff

      Hi Ryan,

      Thank you for reaching out to finder.

      Each insurance brand will have an assessment criteria for applicants. It is crucial that you disclose all details to your insurance brand that may impact whether or not cover may be provided. Many insurers will generally cover high-risk customers, provided you don’t have any other convictions related to fraud, theft, and dishonesty. Hope this helps!

      Cheers,
      Reggie

  2. Default Gravatar
    KimSeptember 15, 2017

    What will it cost to insure a car third party for someone who has had their licence suspended for 6 months?

    • Default Gravatar
      JonathanSeptember 15, 2017

      Hello Kim,

      Thank you for your inquiry.

      Please be informed that finder.com.au is a comparison website service and we provide generic advice.

      Premium cost for your car insurance needs to be underwritten by an insurer. We recommend that you take a look at our insurance panel to compare available options and contact them directly. You may click “Get Quote” green button of your chosen insurer to proceed.

      Hope this helps.

      Cheers,
      Jonathan

Ask a question
Go to site