Many people are turned off by the term “non standard” when shopping for auto insurance coverage. One must realize that because a company is considered to be a non standard auto insurance company, it does not mean it is one of the companies that offer substandard auto insurance. This term does not reflect the company’s financial standing or its A.M. Best rating. To get affordable rates from a variety of companies, enter your ZIP code into our FREE auto insurance comparison tool!
Non standard auto insurance companies are simply there to cover drivers with special needs. They write policies for drivers who are difficult or impossible to place with a standard auto insurance company. To see quotes and policies for you, enter your ZIP code into our FREE auto insurance comparison tool.
Non standard auto insurance companies write policies that most standard auto insurance companies would deny. They may have benefits for you based on your situation.
Credit History and Driving Record
One benefit offered by non standard auto insurance companies is the fact that most of these auto insurance companies do not check your credit rating. Most non standard auto insurance companies do not care about your credit history whatsoever. If a person has bad credit or no credit, this could be a major factor in their automobile insurance being placed with a non standard company.
Another reason people choose a non standard insurance company for their automobile insurance is that these companies are a lot more lenient with an imperfect driving history. Non standard insurance companies will write automobile insurance policies for drivers with multiple accidents or violations, including DUI or DWI convictions.
Who Gets Their Policies
Standard auto insurance companies will not write a policy for a customer who has no current or full auto insurance coverage. In this case, an automobile owner would need to purchase coverage from a non standard auto insurance company for a period of six months to two years, and then re-apply with a standard auto insurance company if they are accident and ticket free within that time period.
Non standard auto insurance companies also often write policies for drivers who are older than 70 or younger than 20. These age groups are considered to be a high risk and will most often be denied coverage with a standard auto insurance company. Non standard auto insurance companies may also write an auto insurance policy for a person with a medical condition that could possibly affect their driving capabilities.
Comparing Standard and Non Standard
Even though a standard auto insurance company may agree to write a policy for a customer in one of the above situations, it may be wise to obtain a quote from a non standard auto insurance company for comparison purposes before purchasing.
Many times a non standard auto insurance company will offer a less expensive premium for a high risk driver than that of a standard company.
The standard auto insurance company targets the low risk driver, while the non standard auto insurance company caters to the high risk driver. Therefore, their rates will most likely be more competitive for the high risk driver.
A driver who purchases certain vehicles, such as very expensive sports cars, may also be placed with a non standard auto insurance company. High performance or antique cars are also considered high risk vehicles.
Requirements for Drivers
Drivers who lose their driving privileges by having their license revoked or suspended are sometimes required to purchase insurance prior to having their license reinstated. This type of policy must be underwritten by a non standard auto insurance company. The non standard auto insurance company will submit a Form SR-22 to the Department of Motor Vehicles on behalf of the insured in order for their license to be reinstated. If at any time this policy lapses, the company will immediately notify the Department of Motor Vehicles and the driver’s license will once again be revoked.
The following is a list of examples of non standard auto insurance companies, as well as standard auto insurance companies that also have a non standard program:
- Allstate Indemnity Company
- Atlanta Casualty Company
- Dairyland Insurance Company
- Geico Casualty Company
- The Travelers Insurance Companies, Inc
- State Farm Mutual Insurance Companies
All of the above companies offer insurance coverage to drivers that are considered high risk drivers, as well as drivers with high risk vehicles. This is not a complete list. To find a non standard auto insurance company, you can call a local insurance agent or use an online search engine.
Customers currently insured with a standard auto insurance company must be careful to keep their driving record perfect. Multiple claims against their auto insurance policy, multiple accidents (especially at-fault), speeding tickets and DUI or DWI convictions could cause their auto insurance policy to be cancelled or non-renewed. This is when that driver would need to obtain auto insurance through a non standard auto insurance company.
Non standard auto insurance companies are very helpful to high risk drivers and drivers who own high risk vehicles.
The more strikes a driver has against them, the higher their insurance premium is likely to be. However, non standard auto insurance companies do provide coverage for high risk drivers. It is very unlikely that a driver will be denied coverage through a non standard auto insurance company. Compare auto insurance rates using our FREE comparison tool by entering your ZIP code. These companies can be a real life saver to drivers that have been turned down time after time by standard auto insurance companies.