Using the roads involves more than just following the traffic laws and having a keen sense of direction. It also needs suitable car insurance to protect yourself from unpredictable circumstances. Standard auto insurance is the main protection mechanism every driver needs, as it offers the right coverage against any financial fallouts due to road mishaps or accidents.
It also helps you meet the legal requirements of owning and driving a car in any state or part of the nation. In addition to this, standard auto insurance is meant for drivers who have average risk profiles, like a standard vehicle model and make, and a clean driving record. A standard car insurance policy is one of the basic parts of owning a car or vehicle.
What is Standard Auto Insurance?
Standard auto insurance is the basic form of insurance designed for drivers who are at an average level of risk. This type of insurance is created and meant for people who have no major traffic violations, clean driving records, and own a common vehicle or car model.
So, if you have a standard auto insurance policy, you get the right amount of coverage that suits your state’s legal requirements and provides extra options based on the needs of a driver. Moreover, you do not have to worry about high premiums with this type of insurance, and you get financial protection against theft, vehicle-related damages, and accidents.
How Does it Work?
When you purchase a standard auto insurance policy and become a policyholder, you will have to pay premiums. What’s more, according to your policy’s terms, you have financial protection against losses that are mentioned in your policy as well. So, when you file a claim for theft or an accident, your insurance provider will be responsible for the cost of the damage up to the policy’s limits minus the deductibles that may be applied.
What Does Standard Auto Insurance Cover?
Before we dive into what a standard auto insurance policy covers, it is important to know that this type of insurance is created to balance common and expensive risks that are related to owning a car or vehicle and driving. The typical coverage includes the following:
- Firstly, uninsured or underinsured motorist coverage.
- Collision coverage.
- Liability coverage.
- Comprehensive coverage.
- Personal Injury Protection (PIP).
- Lastly, medical payment coverage.
What Are Its Exclusions?
Undoubtedly, this type of insurance has exclusions just like other forms of insurance. With an understanding of this, you will have no issue knowing the limits of your quote. Typical exclusions include:
- Damage from using the vehicle for unlawful acts.
- Nuclear hazards or war damage.
- Intentional damage.
- Normal wear and tear.
- Damage from racing or other risky speed contests.
- Commercial use of vehicles.
How Much Does It Cost?
The cost of a standard car insurance policy varies, and it is determined by several factors. This includes the make and model of the vehicle, the amount of coverage bought, the driver’s age, geographic location, and driving record. Additionally, the premiums or rates on this type of insurance are usually moderate and inexpensive, unlike nonstandard policies.
How to Get a Standard Auto Insurance Policy
If you would like to get or purchase a standard auto insurance policy, here are a few straightforward steps to follow:
- Use your driving habits and vehicle to assess your insurance needs.
- Shop around.
- Compare quotes from different insurance companies.
- Choose the suitable coverage options and limits that suit and meet your needs.
- Apply for the policy.
- Provide all the required information and documentation.
- Pay your premium to activate the policy.
Although you will come across multiple application procedures by insurance providers, this is the most basic and common step that most providers use.
Frequently Asked Questions
What makes a driver qualify for standard auto insurance?
A driver qualifies for standard auto insurance if they are considered to have an average risk profile. This typically includes having a relatively clean driving record, being an experienced driver, owning a standard vehicle, and having stable credit.
Can I upgrade from a basic to a more comprehensive standard insurance policy?
Yes, you can upgrade from a basic policy to a more comprehensive standard policy at any time. Most insurance companies provide different coverage options, and you can make changes to your policy.
What happens if I am found at fault in an accident?
If you are found at fault in an accident, your liability coverage will pay for the damages and medical expenses of the other party up to your coverage limit. If the damages surpass your coverage limits, you could potentially be liable for the remaining amount personally. Additionally, your insurance rates may increase at renewal time due to the higher perceived risk.
Are family members covered under my standard auto insurance?
Yes, family members who live with you and are listed on your policy are typically covered to drive your car under your standard auto insurance. This includes teens, spouses, and sometimes extended family. It is important to list all regular drivers on your policy to ensure proper coverage.