High-Risk Insurance Costs In Virginia

Many factors go into calculating high-risk insurance costs. Call us today for affordable Virginia SR-22 or FR-44 insurance.

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High Risk Insurance Cost Example

High-risk insurance doesn't have to cost a fortune.

The amount you pay for insurance depends on required coverage limits, risk level, and the insurer’s confidence in the risk estimate. Experienced high-risk insurance providers can calculate risk more accurately, allowing them to offer competitive rates.

Insurance can be costly for high-risk drivers. Your premiums will likely increase when the state requires you to get Virginia high-risk insurance. The extent of any increase depends on a variety of factors. But it’s still possible for high-risk drivers to get affordable car insurance. This guide will help you find Virginia SR-22 or FR-44 insurance at a rate you can afford.

UltraCar Insurance specializes in high-risk insurance for Virginia drivers. All of our agents have more than ten years of experience in the industry, which helps us find policies specific to what you need and can afford. Read on to learn more about high-risk SR-22 and FR-44 insurance in Virginia.

What is High-Risk Insurance?

Suppose you’ve been convicted of several driving-related offenses or have frequently been in at-fault accidents. Insurance companies will move you into a high-risk driver category in cases like these. In a nutshell, being a high-risk driver means you’re at greater risk of having to file insurance claims than the average driver.

Because of this higher risk, insurance companies can’t add you to the risk pool at the same rates. You’ll compensate for this by paying the proportionately higher premiums reflected in SR-22 and FR-44 policies. For example, if you’re twice as likely to get into an accident than an average driver, your premiums would be about twice as high for the same coverage limits. Other factors also play into premium costs, but we’ll discuss that later.

Related: What Does It Mean To Be A High-Risk Driver In Virginia

What are SR-22 and FR-44 Insurance Policies?

Virginia requires you to attach an SR-22 or FR-44 certificate to your insurance policy to reinstate your license after a suspension. There are also other reasons the state may require an SR-22 insurance certificate.

When you file a financial responsibility certificate, your policy must meet the state’s minimum liability coverage requirements. These requirements may cause your insurance premiums to increase. However, UltraCar Insurance specializes in low-cost SR-22 and FR-44 insurance in Virginia; in fact, we’re one of the country’s most competitive providers of Virginia high-risk insurance (SR-22 and FR-44 insurance). Let our experienced agents write a policy and file your certificate. Get in touch for a free quote today.

Let’s see what makes high-risk insurance so expensive in the first place.

Factors That Make High-Risk Insurance Costly

High-risk insurance is expensive for multiple reasons. Even by minimizing one of these contributing factors, we can make high-risk insurance significantly less costly. Here’s what we mean.

High Expected Value Of Claims

Insurance companies calculate the cost of an insurance policy by estimating the amount they’ll spend on your claims in a year. You probably won’t file a claim in a given year. You likely won’t file a claim in a given year. However, the company estimates this amount based on claims submitted by drivers similar to you. This calculation is called risk pooling. A higher risk of claims results in higher premiums.

High Coverage Limits

The government sets minimum liability coverage limits in Virginia. High coverage limits increase the expectation of claims, thus increasing insurance costs. So, when you require an SR-22 or FR-44 certificate, your minimum coverage requirements are higher than an average car insurance policy.

"Risk" spelled out with dice

Uncertainty in Risk Assessment

SR-22 and FR-44 insurance costs are higher simply because your insurance policy is more expensive to the insurance company. Assessing your risk factor is different. Not every high-risk driver is the same. Some drivers are more likely to file specific claims than others. Some high-risk drivers are less high-risk than they appear. An accurate assessment of the risk is vital for cost evaluation.

However, companies inexperienced in Virginia high-risk insurance need more data to assess individual risks accurately. Their expected value of claims has a high margin of error or a high standard deviation, which makes the entire pool riskier.

Insurance companies wouldn’t survive if they took unnecessary risks. They have no choice but to assume the highest possible cost of expected claims, which means you have to pay the same rate as people at a higher risk of filing claims.

UltraCar Insurance can offer cost-effective plans based on accurate risk assessment for high-risk drivers.

Underwriters assessing risk

How UltraCar Insurance Offers Cost-Effective High-Risk Insurance In Virginia

UltraCar Insurance works with insurance carriers that take all your specifics into account. Our risk assessments have low uncertainty levels, meaning you pay only for your specific risk and coverage limits.

We’re a widely trusted SR-22 and FR-44 insurance provider in Virginia, offering highly competitive rates and fast, free SR-22 and FR-44 insurance quotes with no filing fees! Our agents will write a policy for you and file your Virginia high-risk insurance certificate within 20 minutes.

Ready for a free quote for high-risk insurance in Virginia? Get an online quote now!

This article was last updated on November 1st, 2023 by