For high-risk drivers in Australia, finding car insurance can be more of a challenge. Whether it’s a history of accidents or multiple driving offences, insurance providers may consider you a higher risk to insure. If you’ve been classified as high risk, it’s important to know what insurance options may be available to you. Comparing quotes online can give you a range of options from trusted lenders, helping you find a policy that suits your needs.
What makes a driver ‘high risk’ in car insurance?
Being classified as a high-risk driver in car insurance is typically based on various factors that indicate a higher likelihood of accidents, claims or offences. These factors may include:
- A history of at-fault accidents and insurance claims
- Multiple traffic violations
- DUI convictions
- Licence suspensions
- A lack of driving experience
Having a criminal record, depending on what you were convicted for, may also make you a higher risk for insurance providers. All these factors will be assessed by the insurer to determine the level of risk associated with insuring a particular driver.
Can I get insured as a high-risk driver?
It's possible to get insured as a high-risk driver in Australia, though the ease of obtaining cover and its cost depend on why you are deemed ‘high-risk’. In most cases, high-risk drivers who are offered cover will have to pay a more expensive premium to obtain it.
If you're high-risk simply because you're a younger driver or inexperienced, most insurers offer cover for under-25s. However, in other situations, obtaining insurance coverage as a high-risk driver can be more challenging. You may be able to get insurance if your licence has been suspended or you have had an at-fault accident, but will again likely face high premiums. If you've been in a drink-driving accident and have DUI convictions, insurers may refuse to cover you at all.
While your insurance options may be more limited as a high-risk driver in certain situations, some insurance companies specialise in providing coverage for high-risk drivers, while others may offer policies specifically tailored to this category. It’s important to see what options may be available to you before you buy your policy, which you can do easily by comparing quotes online.
What restrictions may be placed on high-risk car insurance?
Many high-risk car insurance policies have limitations and exclusions due to the increased risk associated with insuring high-risk drivers. While the specific coverage details may vary depending on the insurer and policy, restrictions could include:
- Higher premiums: as mentioned, drivers with a bad driving record often face higher insurance premiums than drivers who have not been involved in serious incidents.
- Limited coverage options: some insurance providers may offer more limited coverage options for high-risk drivers, such as only offering basic third party property damage or third party fire and theft coverage rather than comprehensive cover.
- Exclusions and higher excess: high-risk car insurance may include specific exclusions relating to certain types of incidents or damage and higher excess amounts to be paid if you have to make a claim.
- Restricted policy benefits: there may be restricted policy benefits, such as limited coverage for personal belongings inside the vehicle or reduced coverage for rental car expenses in case of an accident.
How long will I be considered high-risk by my insurer?
This can vary depending on your circumstances, your driving history and where in Australia you live, but demerit points from traffic offences generally stay on your driving record for at least three years. As time passes without any additional accidents or offences, your risk level may decrease.
Insurance providers typically review your driving record over a specific period, such as three to five years, to assess your risk. If you maintain a clean driving record and demonstrate responsible driving behaviour, you may eventually transition to a lower risk category and qualify for more affordable insurance options.
How to reduce your premiums as a high-risk driver
-
Improve your driving record
If you have a bad driving record, focus on practising safe driving habits and adhering to traffic laws. Avoid accidents and traffic violations, as a clean driving record over time can help improve your risk profile and potentially lead to lower premiums.
-
Drive less (where possible)
Driving less can reduce the likelihood of accidents and lowers the overall risk of vehicle damage, making you less likely to file a claim. If you have the opportunity to take public transport to work or university, for example, doing so can help you save on your premium.
-
Increase your excess
Raising your excess, which is the amount you pay out of pocket before your insurance coverage kicks in, may enable you to lower your premiums. However, ensure that you can afford this excess amount in case of a claim.
-
Park off-street
Parking off-street can reduce the risk of theft, vandalism and accidental damage that may occur when your car is parked on the street, making it a safer option in the eyes of insurance providers. Parking in a garage, carport or even private driveway can all help you save on your premiums.
-
Install safety devices
Equipping your vehicle with safety features such as anti-theft devices, alarms or dashcams can demonstrate your commitment to protecting your car and may result in lower premiums.
-
Shop around for competitive quotes
Your options might be more limited as a high-risk driver, but it's still important to compare quotes from multiple insurance providers to help you find the most affordable offer available.
