Most states require licensed drivers to purchase auto insurance. In fact, you will need proof of insurance to get a car inspection, register or renew a car registration, obtain or renew a driver's license, etc. But what happens when you are a high risk driver and cannot find commerical auto insurance? Fortunately most states offer a high risk auto insurance plan for those who cannot find commercial insurance. Learn how to find an alternative so that you can be a legal, licensed driver and protect you and other drivers against the high costs of accidents.

Things You Will Need

Rejections from commercial car insurance companies
Access to your Department of Motor Vehicles
Driver's License
Insurance Broker Agent (in some states)

Step 1

If you feel that you may be high risk because you are young, live near an accident-prone intersection, have a claims history, have a poor credit score, etc., then check out your Comprehensive Loss Underwriting Exchange (CLUE). Most auto insurance companies use this to determine if they will insure you or not. By Federal Law, you are allowed a free CLUE report once per year.

Step 2

Start shopping around with an insurance broker, or calling insurance companies yourself. You typically need to prove to your state's Department of Motor Vehicles that you have been rejected by at least three commercial companies in order to qualify for a high risk plan. Besides, it is better for you to be insured commercially, so it is in your best interest to exhaust all possibilities. By using an insurance broker you will be saving yourself time because they can do the cold calling for you once you provide them with the necessary information.

Step 3

Contact your state's Department of Motor Vehicle. You will need to find out the process for applying to their high risk auto insurance. If you are using a broker, your insurance agent can take care of this for you. Typically you will need to fill out the Safety Responsibility (SR-22) form and submit this to your Department of Motor Vehicles. The reasons for filling out this form and filing it with the state varies from state-to-state, so it is important to find out what your state requires.

Having an auto insurance policy is extremely important for both you and for other drivers. Oftentimes, it is illegal to drive without having minimum state required coverage, and you may not be able to obtain or get a new driver's license without it. Make sure you contact an insurance agent and your Department of Motor Vehicles to find auto insurance and get legal.

Tips & Warnings

Some states, such as Texas, require you to apply for the state's high risk auto insurance policy through a broker; you cannot do so yourself. Make sure you check the rules with your individual state.

The state's high risk insurance plan will only cover you for the minimum requirements for the state, and typically not for damage to your vehicle.