Nonstandard Auto Insurance

What is nonstandard auto insurance? When it comes to car insurance, drivers are divided into one of three categories. We have the standard, which consists of average and preferred drivers; we have the nonstandard, which is considered high-risk drivers; and lastly, the residual market. As for the drivers who are grouped in the nonstandard car insurance section, they stand a chance to make claims, unlike those who have standard car insurance with insurance companies.

Nonstandard Auto Insurance

Hence, to cushion the risk, they will be charged higher insurance premiums. Besides, some insurance providers may not insure high-risk drivers. If you cause a lot of accidents, you will move to the nonstandard category. Apart from this, other things can cause you to fall into this classification, and you will learn about them in this article.

What is Nonstandard Auto Insurance?

Nonstandard auto insurance, or car insurance, is a specialized type of insurance meant for drivers who are considered high-risk by insurance providers. What’s more, if you are not able to obtain a standard car insurance policy, nonstandard auto insurance is a great alternative for you.

Drivers who have a history of DUI convictions, multiple traffic violations, young or inexperienced drivers, accidents, car owners with poor credit scores, and individuals with high-performance or exotic vehicles fall under this category as well. Since these drivers may likely file a claim, insurance providers are classified as high-risk drivers.

This type of auto insurance offers the necessary coverage for these types of drivers to use a vehicle legally, even though, unlike standard insurance, there are higher premium rates because of the heightened risks. The coverage that this insurance offers may be comprehensive, collision coverage, and bodily injury and property damage liability.

How Does it Work?

This insurance functions and works similarly to a typical car insurance policy. However, some of the major differences are that this insurance comes with stricter conditions and higher premiums.

This is a result of the heightened risks that come with insuring such drivers. Some insurance companies ask for stricter proof of continuous coverage and impose different penalties for lapses. Nevertheless, nonstandard auto insurance offers an important service to drivers who are high-risk and allows them to drive legally.

What Does Nonstandard Auto Insurance Cover?

The coverage that this insurance offers can differ vastly, and it is affected by the insurance company of your choice. Nonetheless, here is what it typically covers:

  • Comprehensive coverage.
  • Liability coverage.
  • Collision coverage.
  • Medical payments and personal injury protection.
  • Uninsured or underinsured motorist coverage.

What Does It Not Cover?

Although the specifics of a policy can vary, there are general exclusions that are common to nonstandard auto insurance policies, and they include:

  • Intentional damage.
  • Commercial use.
  • Personal belongings.
  • Exotic or expensive modifications.

Factors That Can Cause You to Fall in the Nonstandard Category

Here are factors that can lead to you being categorized as an individual who needs this insurance:

  • Lapses in auto insurance coverage.
  • A history of multiple traffic violations.
  • High-risk use of vehicles.
  • Driving with a suspended license or without a license.
  • DUI/DWI convictions.
  • A history of auto accidents, whether at fault or not.
  • A poor credit score.
  • Owning high-performance or exotic cars.
  • Residing in areas prone to vandalism, high accident rates, and theft.
  • Inexperienced or young drivers.

Nonstandard Auto Insurance Cost

The cost of purchasing this insurance policy is usually higher than that of standard insurance. This is because of the increased risks that come with insuring high-risk drivers. Apart from that, other factors play important roles in determining the price, and they include geographical location, driving history, the age of the driver, and the type of vehicle. Drivers who have multiple traffic violations and DUIs will also get higher premiums.

How to Get Nonstandard Auto Insurance

If you are not able to qualify for a standard auto insurance policy, that is not the end of the world. On the contrary, there are other alternatives to explore, and you can openly consider nonstandard auto insurance. On the other hand, if you would like to get a quote, here are the basic steps to follow:

  • Assess your needs.
  • Shop around.
  • Compare insurance companies and policies.
  • Provide accurate information.
  • Consider using a broker.
  • Ask for discounts.
  • Review the policy terms before agreeing.
  • Make your first premium payment.

Even in the nonstandard insurance market, there are discounts that you can access and enjoy.

Frequently Asked Questions

Why might someone need Nonstandard Auto Insurance?

Nonstandard auto insurance is beneficial for drivers who are found high-risk for standard auto insurance policies because of different factors like the type of vehicle you drive, a poor driving record, age, and many others.

Is Nonstandard Auto Insurance available in all states?

Yes, this type of auto insurance is available and accessible in all states, but certain providers and available coverage options can vary.

Can I switch from Nonstandard to Standard Auto Insurance?

It is 100% possible to switch from nonstandard to standard car insurance. But to do this, you need to improve your credit score and driving record over time.