High-Risk Driver in Your Household? 5 Tips for Insurance Coverage

Do you have a high-risk driver in your household? If so, auto insurance is vital to protect everyone. But the high-risk driver makes things more complicated. Should you insure them? Can you? What other steps should you take? Discover a few important tips to get the insurance everyone needs without paying any more than is necessary.



1. Obtain SR-22 Insurance

Drivers with certain serious traffic violations on their record are often required to obtain a specific type of car insurance. Known as SR-22 insurance, this policy includes a service provided by carriers: sending verification forms to the state. You might pay extra for this service, but it may be the only way to get back the offending driver's license and authority to drive.

If your high-risk driver needs SR-22 insurance, talk with a qualified Illinois Insurance agent about where to purchase it. Not all carriers handle SR-22, so you may need to get insurance through a specialty insurer. Due to the higher cost, most households only cover the high-risk driver through this insurance. 

2. Shop Around Again

If you do want to keep the driver on your policy, go insurance shopping. Gather together the details of all drivers you want to include, identification information of all vehicles, and any copies of prior insurance for comparison.

Also, have in mind the types and values of insurance you intend to buy. Start with the minimum amounts required in your state. In Illinois, drivers must carry liability insurance that covers at least $25,000 per person for bodily injury, $50,000 for multiple injuries or deaths, and $20,000 for property damage. However, most drivers should get higher limits to better protect their finances.

Outside these state minimums, decide in advance if you need comprehensive auto insurance (rather than strictly liability) or gap insurance to pay off a loan. Finally, consider additional options like roadside assistance and uninsured motorist coverage. Knowing what you are shopping for before you start streamlines the process and prevents wasting time.

3. Exclude the High-Risk Driver

Whether your high-risk driver is an adult child, a spouse, or a roommate, you can exclude them from your insurance policy. By doing so, you get a larger pool of available insurance options and, therefore, lower prices for the rest of the family or roommates. Be clear about this exclusion so the high-risk party knows that they need to shop for their own policy.

Exclusion is a specific declaration and is not simply the removal of a name from your policy. Removing a household member from a policy may or may not mean they are not covered by your insurance. Policies vary about this, so a removed driver's accident might still go on your policy. Excluding them means your insurer does not cover their accident.

4. Create Ground Rules

If you do exclude a driver or remove them from your own insurance, set ground rules about using vehicles. An excluded driver must have sufficient insurance on their own in order to borrow your or another household driver's vehicle. Keep proof of this insurance if you do authorize them to drive your vehicle.

If they cannot provide that, explicitly state that you do not give them permission to use your vehicle. You may even need to avoid keeping vehicle keys where everyone can access them since leaving keys available could be construed as implied permission. If a high-risk driver does use your vehicle, you may also stipulate for what purposes or time frame you give permission. 

These may seem like drastic steps, but this is not a time to mince words or dance around the subject. These are important steps to limit your own liability should that driver get into an accident. 

5. Check Back In Later

Dealing with a high-risk driver is a challenge—sometimes an expensive one—but it does not have to last forever. SR-22 insurance, for instance, is often mandated for a minimum of three years. Keep track of this time so you know as soon as you can drop this more expensive coverage and bundle the driver back on the household policy.

Shop around for policies on a periodic basis. At Illinois Insurance Center they check all drivers' histories and determine when a black mark has aged off of driving records and shop your policy every year with over 20 companies. They also keep abreast of changes in state law and coverage options that may apply in your situation.

Whatever the situation that created a high-risk driver in your household is, these steps will help protect everyone—and keep everyone on the road when possible. Learn more about high-risk drivers, SR-22 insurance, exclusion, and tips for savings. Meet with the team at Illinois Insurance Center. We will work with you to find the best options to move forward. Call or visit today to get started. Let us know about any questions or concerns you may have.