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Do I meet the requirements for standard auto insurance?

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Things to Remember...
  • A driver must meet certain qualifications to be able to purchase a standard insurance policy
  • A good driving record and a history of few claims are two requirements for a standard insurance policy
  • Sometimes the type of vehicle can affect a driver’s ability to purchase a standard insurance policy as well

Auto insurance coverage provides a form of financial protection in the event of property damage, medical costs, or car repair costs caused by a collision or accident.

In general, the auto insurance industry earns profits by calculating risk factors and probability rates.

Likewise, auto insurance companies measure a driver’s eligibility for standard auto coverage based on his or her risk profile.

To qualify for a policy from standard auto insurance companies, a driver must meet certain eligibility requirements for past driving history, coverage history, and the type of car used.

Enter your ZIP code into our FREE auto insurance comparison tool now to see if you qualify for standard coverage from several car insurance companies.

Coverage Levels

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Auto insurance companies insure drivers within coverage levels or tiers based on a driver’s risk rating. Risk ratings assign a rating level based on different categories of risk.

The most commonly used risk categories include:

The coverage level assigned to a driver’s insurance policy is based on the calculated risk rating. In most cases, the higher the rating the higher the risk a company takes on when insuring a driver.

Certain drivers will need high-risk auto insurance coverage and some can get better coverage. This risk translates into higher premium costs for the driver.

The most commonly used coverage levels include:

  • Preferred coverage
  • Standard coverage
  • Non-standard coverage

The different levels represent different levels of risk with preferred auto insurance coverage carrying the lowest degree of risk and non-standard auto insurance companies coverage carrying the highest.

The main difference between preferred and standard coverage has to do with a driver’s credit history or credit rating.

A driver with a clean driving record and a stellar credit history may qualify for preferred auto coverage.

Driving Record

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A person’s driving record carries considerable weight for auto insurance companies when determining eligibility for standard auto coverage.

A clean driving record, meaning no driving violations like DUIs or multiple traffic tickets, is one qualification.

The number of accidents a driver has on record also affects a driving record profile. Ultimately, someone who has filed multiple claims over the years would have a difficult time qualifying for standard auto insurance coverage.

Claim filings are not limited to accidents, as claims may be filed for acts of vandalism or damage caused by extreme weather conditions.

When examining a person’s driving record, auto insurance companies consider a driver’s coverage history to see if your coverage has been continuous.

Someone with lapses or gaps in coverage may not qualify for standard coverage depending on the length and/or frequency of gaps throughout the driving history.

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Type of Vehicle

The type of vehicle used by a driver contributes to the level of risk an insurance company carries when granting insurance coverage.

In order to qualify for a standard auto policy, the vehicle must fall within the standard car range in terms of market value and replacement costs.

High-end cars, such as custom-built cars, muscle cars or high-powered sports cars carry high market values. A car with a high market value exceeds coverage limits for replacement costs provided by a standard policy.

In most cases, a high-end car would fall within the non-standard coverage range.

And while standard auto coverage typically costs less than non-standard policies, someone who qualifies for standard coverage may, in fact, find a better deal with a non-standard insurance company when trying to ensure a high-end vehicle.

Some auto insurance companies specialize in non-standard coverage, which allows them to offer better rates for non-standard drivers and vehicles.

This means someone with a spotless driving record could actually get a cheaper rate with a non-standard insurer when trying to insure a high-end vehicle.

Qualifying for Standard Coverage

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Because auto insurance companies operate according to state law guidelines, the same qualification criterion applies from company to company within each state.

As each state sets its own guidelines, what’s standard in one state in terms of coverage limits and requirements may fall under non-standard or preferred guidelines in another state.

Drivers who have multiple speeding tickets on record can qualify for standard auto coverage by driving with a clean record for the stated number of years required by state insurance laws.

Drivers who’ve filed multiple claims in the past can also qualify for standard coverage by reducing the number of claims they file for however many years are required by state insurance laws.

Ultimately, drivers who qualify for standard auto insurance coverage pay lower premium rates, have more coverage options, and qualify for higher coverage limits.

In most cases, lower out-of-pocket costs for yearly deductible amounts are another added benefit with standard insurance plans.

See what discounts and rates are available to you when you enter your ZIP code into our FREE car insurance comparison tool.

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