Standard vs Non-Standard Car Insurance – Bankrate.com

March 15, 2022 By admin

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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
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Standard auto insurance is available for the majority of drivers. Most major insurers, such as State Farm, Allstate, Geico, Progressive and USAA offer these policy types at affordable prices.
However, some drivers are flagged as high-risk and may not be eligible for standard car insurance. Therefore, a nonstandard auto insurance policy may be their only coverage option until they are no longer considered a high-risk driver. Knowing the difference between standard vs. nonstandard insurance can help you proactively find the best option.
Nonstandard insurance was created for high-risk drivers unable to obtain a standard car insurance policy. But who exactly is considered high risk? Auto insurers typically qualify the following drivers as nonstandard or high risk:
The scenarios above could all classify a driver as a higher risk to insure. New or foreign drivers or those with a history of accidents or lapse in coverage may be viewed as more likely to be involved in future accidents and costly claims. An auto insurer may not offer standard coverage or if they do, premiums could be higher.
Nonstandard insurance is designed to cover higher-risk drivers who may no longer qualify for standard coverage. The largest differences between standard vs. nonstandard auto insurance are cost and available auto insurers. Nonstandard car insurance is typically more expensive.
Purchasing nonstandard car insurance works the same way as if you were buying standard coverage. To find the best price, shop around and compare carrier quotes. Since premiums for nonstandard insurance are typically higher than average, shopping around could help you find the most affordable premium. Once you choose a carrier, you can purchase a policy. If you are required to file an SR-22, you can ask the insurer to file it with the state on your behalf as proof that you are properly insured.
Insurance companies use the factors mentioned already to classify you as a nonstandard driver. Besides the list, an auto insurance company may charge you more for premiums if you have poor credit — unless you live in a state where credit checks are prohibited.
Factors that also could affect your rates significantly that are not related to you as a driver are your geographic location, vehicle type and the insurer you choose. The area you live in affects the cost of car insurance based on crime rates and the number of claims in the area, including weather-related losses. The type of vehicle you drive affects your premiums due to the cost to replace vehicle parts, how well the vehicle protects the passengers from injuries and how much damage the vehicle can cause to others in an at-fault accident.
As far as the carrier you choose, the same level of coverage could cost more or less. Some car insurance companies are “friendlier” to high-risk drivers or specialize in nonstandard car insurance, which could help you save on premiums. Insurers also rate incidents, such as at-fault accidents and speeding tickets, differently by using their proprietary algorithms to calculate premiums.
Standard auto insurance is the best-known type of coverage. It provides the level of coverage required by your state to legally drive at an affordable rate. Standard car insurance is available for lower-risk drivers. It is easiest to find because all the major insurers and regional insurers usually offer it.
Nonstandard insurance is made for drivers considered high-risk by insurance carriers. It is typically more expensive and not as widely available as standard insurance. Some major insurers offer nonstandard insurance, as well as regional and local auto insurers.
If you were canceled or nonrenewed by your existing carrier, looking for a nonstandard insurance company is the best alternative. Carriers that offer nonstandard insurance include Mercury, Geico and The General.
Nonstandard insurance was created for high-risk drivers who may not qualify for standard coverage. Because high-risk drivers have a history of accidents, moving violations or other risky activities that typically lead to costly claims, car insurance premiums are higher than average.
A car insurance company may cancel your coverage or choose to nonrenew it. If this is the case, you will need to find vehicle insurance elsewhere. If you were nonrenewed because of an incident such as a DUI conviction or multiple claims in a short time, finding a nonstandard insurance company may be your best option. Nonstandard carriers may be more willing to work with you and could provide your state’s Department of Motor Vehicles (DMV) with an SR-22 certificate proving you are legally insured.
If you have a non-standard auto insurance policy, you may be eligible for standard coverage after a major violation has fallen off your driving record, or you have maintained car insurance for six months or longer. Typically, insurance companies want to see that you can drive safely and maintain car insurance. Guidelines vary by auto insurer, and you may be eligible for standard coverage earlier, or you may need to keep non-standard coverage for longer. Time frames will vary depending on the rules of the standard company you are considering.
Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products.
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