Subprime insurance refers to policies designed for individuals or businesses with a higher risk profile, often due to poor credit history or financial instability. These policies typically come with higher premiums to offset the increased risk that insurers face when covering these clients. This type of insurance can include various products, such as auto, home, or health insurance. While it provides essential coverage for those who might otherwise be unable to obtain insurance, it can also lead to financial strain due to the elevated costs associated with subprime lending practices.