AutoInsurance.com is supported by commissions from providers listed on our site. Read our Editorial Guidelines.
Find Your Perfect Policy: 866-843-5386
Last updated: October 9, 2024
Driver Risk: How Risky Are You?
Your auto insurance rates are largely based on how “risky” providers believe you are to insure. Here are the steps you can take to lower your risk classification.
Table of Contents
Share
Share
How safe of a driver do you think you are? Most people would probably say they’re pretty safe behind the wheel. In fact, around 80 percent of drivers believe they’re better than average — which is statistically impossible!1
Insurance companies attempt to assess your risk when selling you an insurance policy, but there is no one-size-fits-all method to determine your risk. We’ve assembled a guide to understanding how insurers determine risk, and how to minimize your risks while driving.
Editor’s note (last updated August 28, 2024): We have updated this page with more information about how insurance companies determine driver risk, the latest SR-22 and FR-44 laws by state, and to reflect the National Highway Traffic Safety Administration’s most recent data, which is from 2022.
Understanding Driver Risk in Auto Insurance
What Is Driver Risk?
Driver risk refers to the likelihood of a driver being involved in an accident or making a claim. Insurance companies assess this risk to determine how much to charge for coverage. Higher risk typically means higher premiums, while lower risk can result in lower costs.
How Do Insurance Companies Determine Risk?
Insurance companies have their own algorithms and underwriting processes for determining premiums, and part of this calculation includes risk. While companies have different formulas for determining driver risk, they all take into account factors such as these:
- Driving History: Previous accidents, traffic violations, DUIs, and claims history are key indicators.
- Age and Experience: Younger and less experienced drivers are often considered higher risk.
- Location: Drivers who live in areas with higher crime and accident rates are more likely to face higher premiums.
- Vehicle Type: Some cars are more expensive to repair, statistically more likely to be involved in accidents, or more prone to theft, which can increase risk.
- Credit History: In most states, insurers may consider credit scores as part of their risk assessment.
DID YOU KNOW?
In 2022, the year of the most recent federal data, there were 3,308 deaths and 289,310 injuries from distracted driving-related crashes in the U.S.2
Different Risk Levels
Insurance companies categorize drivers into different risk levels:
- Preferred Risk: Drivers with clean records, good credit, and low-risk profiles typically enjoy the lowest premiums.
- Standard Risk: Most drivers fall into this category. They have average driving records and moderate risk.
- High Risk: Drivers with multiple violations, accidents, or other factors that make them more likely to file a claim. These drivers face higher premiums and may need specialized insurance, especially if they are turned away by major insurance companies.
Sometimes “preferred” and “standard” risks are grouped into a single category.
TIP
If you’re a high-risk driver, check out the best high-risk auto insurance.
Why Driver Risk Matters
Understanding your risk level can help you take steps to improve it, such as maintaining a clean driving record or choosing a safer vehicle. Lowering your risk can lead to significant savings on your auto insurance premiums.
How to Minimize Your Driver Risk
Reducing your driver risk can lead to lower insurance premiums and, most importantly, keep you and others safer on the road. Here are some strategies:
- Drive defensively. Defensive driving means driving in a safe way to avoid hazards. That includes planning ahead by checking the weather, leaving space between you and the car in front of you on the road, and scanning your surroundings3. Completing a defensive driving course not only can improve your skills but also potentially earn you a discount on your insurance.
- Put your phone away. Don’t use or look at your phone while driving. Using hands-free voice assistants such as Alexa, Google Assistant, and Siri are safer choices, if legal in your state. Check your local DMV’s website to learn about the laws in your state.
- Don’t drive drunk, or drowsy. Driving while intoxicated is not only extremely dangerous, a DUI conviction will cause your insurance rates to skyrocket. And if you’re tired, pull over: 2022 saw 693 deaths from crashes related to drowsy driving, according to the National Highway Traffic Safety Administration.
- Stay cool behind the wheel. Road rage is aggressive driving such as speeding, cutting people off, tailgating, weaving through traffic, or even confronting other drivers. When you’re driving, it’s important to stay calm and avoid escalating tense situations that could cost you your life.
- Improve your credit score. If you live in a state where credit scores impact auto insurance premiums, work on improving your score by paying bills on time, reducing debt, and monitoring your credit report.
What are SR-22s and FR-44s?
In 34 states and Washington, D.C., if you get a DUI or are caught driving without insurance, you may have to get an SR-22, which is a certificate verifying that you have the required motor vehicle liability insurance. Holding an SR-22 or FR-44 certificate will classify you as a high-risk driver, making it more expensive and difficult to buy insurance.
In Virginia and Florida, in some cases, you’ll need to get an FR-44 rather than an SR-22. An FR-44, is a form that verifies you have insurance coverage above the minimum.
| State | When an SR22 is required — and for how long |
|---|---|
| Alabama | If you’ve given false proof of insurance and your vehicle registration has been suspended — for 3 years |
| Alaska | If your driving privileges have been suspended or revoked — for 3 years after the revocation ends
If you’ve received a DWI or refusal conviction — for 5 years after the ending date on a first offense, 10 years from the ending date on a second offense, or 20 years from the ending date of a third offense If you’ve had a fourth offense for a refusal or DWI conviction If you have an unsatisfied judgment |
| Arizona | If you’ve received a revocation or suspension for failing to maintain proper insurance — for 3 years after the date you become eligible for reinstatement
For a judgment suspension — varies |
| Arkansas | Not required |
| California | Not required |
| Colorado | If you reinstate from specific revocations or suspensions |
| Connecticut | Not required |
| Delaware | Not required |
| District of Columbia | Revocation due to an alcohol- or drug-related offense for 3 years from date of conviction |
| Florida | Failure to have financial responsibility requirements, for 3 years following the original suspension date |
| Georgia | If you’ve been declared a habitual violator and have had your driver’s license revoked for a 5-year period — for 3 years |
| Hawaii | License judgment, suspension, or revocation |
| Idaho | If you’ve failed to provide insurance — for the length of your suspension
If you’ve gotten a DUI, refused to submit to a Breathalyzer test, or have been convicted of an aggravated DUI If you’ve received an unsatisfied judgment, gotten an aggravated DUI in a commercial motor vehicle (CMV), left the scene of an accident resulting in injury or death in a CMV, or used a CMV or non-CMV to commit a felony |
| Illinois | If you’ve had safety responsibility suspensions, revocations, unsatisfied judgment suspensions, or mandatory insurance supervisions
If you’ve received 3 or more convictions for mandatory insurance violations |
| Indiana | If your driving privileges have been suspended due to your conviction of certain court-related offenses or insurance violations — for 180 consecutive days |
| Iowa | Civil penalties |
| Kansas | Leaving the scene of an accident; following license suspension, restriction, or revocation; other major violations such as a DUI, driving with a suspended license, conviction for no insurance, etc. |
| Kentucky | Not required |
| Louisiana | Not required |
| Maine | Required for DUI, failing to show proof of insurance, driving with a suspended license, etc. Must maintain for 3 years |
| Maryland | 12 points on driving record, DWI, DWI, for 3 years, typically |
| Massachusetts | Not required |
| Michigan | Not required |
| Minnesota | Not required |
| Mississippi | At-fault in an accident with injuries or property damage with no insurance at time of accident, for 3 years following the date of the accident |
| Missouri | Accident judgment and suspension, no proof of insurance, failure to maintain liability insurance. For 2 years for accident judgments, or for 3 years for false insurance/no mandatory insurance |
| Montana | If you’ve had your driver’s license revoked for certain felony convictions (e.g., negligent homicide while driving) or for getting 30 or more conviction points within 3 years |
| Nebraska | License suspension or revocation for a conviction, accumulation of points, etc. |
| Nevada | If you’ve had a lapse in coverage for 91 or more days for a first or second offense, or for more than 1 day for a third offense — for 3 years |
| New Hampshire |
DWI, leaving the scene of an accident/conduct after accident, second offense for reckless driving, for three years following date of conviction/crash/administration action,
Second offense of DWI — 3 years from restoration eligibility date |
| New Jersey | Not required |
| New Mexico | Not required |
| New York | Not required |
| North Carolina | Not required |
| North Dakota | If you’ve had a DUI
If you’ve refused to provide information on your driving record |
| Ohio | If you’ve been caught driving without financial responsibility at a traffic stop or time of accident: three years for a first offense, 5 years for a second offense/third offense
Judgment suspension for causing property damage/personal injury |
| Oklahoma | Not required |
| Oregon | If you’ve been convicted of driving without insurance — beginning on the conviction date
If you own a vehicle that was uninsured at the time of an accident — beginning on the accident date If you are trying to reinstate your driving privileges — beginning on the suspension end date If you are applying for a probationary/hardship permit — beginning when you apply for the permit and ending on the permit expiration date |
| Pennsylvania | Not required |
| Rhode Island | Not required |
| South Carolina | Driving without insurance for 3 years after proof was required |
| South Dakota | If you’ve had your license revoked or suspended following a conviction for having no insurance, vehicular homicide, DUI, or the second offense of reckless driving in a 1-year period
Failure to maintain proof of responsibility — for 3 years after date of conviction, for 3 years after the date of eligibility for reinstatement |
| Tennessee | If you are under the Driver Improvement Program suspension and have a restricted or temporary driver’s license (can only be issued 1 restricted or temporary driver’s license in a 5-year period) |
| Texas | If your driver’s license has been suspended due to a car crash
If you’ve received more than 1 conviction for having no motor vehicle liability insurance If you’ve had a civil judgment filed against you — for 2 years after the date the judgment was rendered If you’ve placed a security deposit with the Texas Department of Public Safety to comply with a crash default or crash suspension |
| Utah | Failing to insure a vehicle |
| Virginia | If you’ve been convicted of unsatisfied judgments, uninsured motor vehicle suspension, failure to provide proof of insurance associated with insurance monitoring, or falsifying insurance certification — for 3 years
If your driver’s license has been suspended as a result of a conviction for voluntary or involuntary manslaughter from operating a motor vehicle, perjury to the DMV regarding motor vehicle registration or a driver’s license application, a felony under motor vehicle law, a hit-and-run that resulted in injury/death, or, for the second time, driving for rent or hire without a license — for 3 years |
| Washington | If you’ve been convicted or forfeited bail for certain offenses — for 3 years from the date you can reinstate your license
If you haven’t paid judgments — for 3 years from the date you can reinstate your license If you’ve driven or owned a vehicle involved in an accident — for 3 years from the date you can reinstate your license |
| West Virginia | If your license has been suspended or revoked — for 3 years
If you have mandatory car insurance supervision or an unsatisfied judgment against you — for 3 years |
| Wisconsin | If you’ve had to obtain an occupational license after yours was revoked or suspended
If you need to reinstate your driver’s license after your operating privileges or vehicle registration have been revoked — for 3 years after the date you’re eligible to reinstate If you reinstate after a suspension due to being uninsured or underinsured or having a damage judgment — for 3 years after the date you’re eligible to reinstate If you are 18 and don’t have a sponsor |
| Wyoming | If you’ve been convicted of a DUI — for 3 years |
Recap
Driver risk is a key factor in determining auto insurance premiums. Some elements of driver risk, like your age, location, and credit history are less likely to change immediately. But by maintaining a clean driving record, driving a safe vehicle, and staying calm on the road, you can minimize your risk and potentially lower your insurance costs. Understanding your risk level and taking proactive steps to reduce it not only saves money but also keeps you and others safer on the road.
Frequently Asked Questions
What is driver risk?
Driver risk is a measure of how likely a person is to get into collisions, particularly ones that result in fatalities or injuries.
What is an example of a driver risk?
Examples of a driver risk include driving under the influence of drugs or alcohol, speeding, or having multiple at-fault accidents on your record.
Who are the most at-risk drivers?
These groups are the most at-risk drivers:
- Drivers with road rage
- Teen drivers and inexperienced drivers
- Drowsy drivers
- Drivers under the influence of alcohol or drugs
- Distracted drivers (e.g., people who text or talk on the phone while driving)
- People who speed excessively
- People who accelerate aggressively
- People who brake harshly
- People who do hard cornering
Is driving a high-risk activity?
Whether or not driving is a high-risk activity depends on your definition of high risk.
Only 0.014 percent of licensed drivers in the U.S. died in traffic fatalities in 2022, according to federal motor vehicle reports. However, that amounted to nearly 27,000 people. If you drive unsafely, like driving under the influence or while texting, driving becomes a high-risk activity. However, if you are sober, focused, and practicing the safest driving skills, you can decrease your risk factors.
Managing Editor & Industry Analyst
Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.
Citations
Are you better than the average driver?. Faculty of Arts and Social Sciences. (2024).
https://fass.open.ac.uk/school-psychology-counselling/news/are-you-better-average-driverNHTSA Launches Put the Phone Away or Pay Campaign; Releases 2023 Fatality Early Estimates. NHTSA. (2024, Apr 1).
https://www.nhtsa.gov/press-releases/2022-traffic-deaths-2023-early-estimates5 Tips For Defensive Driving. Geico. (2024).
https://living.geico.com/driving/auto/car-safety-insurance/defensive-driving/Crashes by Time of Day and Day of Week. Injury Facts. (2022).
https://injuryfacts.nsc.org/motor-vehicle/overview/crashes-by-time-of-day-and-day-of-week/Table 39. FBI. (2019).
https://ucr.fbi.gov/crime-in-the-u.s/2019/crime-in-the-u.s.-2019/topic-pages/tables/table-39Licensed Drivers by Age and Sex. United States Department of Transportation. (2022).
https://www.fhwa.dot.gov/ohim/onh00/bar7.htmTeen Driving Risk Awareness. Michigan. (2022).
https://www.michigan.gov/sos/0,4670,7-127-1627_60169_60179—,00.html5 Tips For Defensive Driving Geico. (2022).
https://www.geico.com/living/driving/auto/car-safety-insurance/defensive-driving/
Related Articles
How a Speeding Ticket Impacts Your Insurance in New York
November 13, 2024Driving Without Insurance in California
November 19, 2024