How do I know if I need a non standard auto insurance company?

FREE Auto Insurance Comparison

 Secured with SHA-256 Encryption

Compare quotes from the top auto insurance companies and save!

Here's what you need to know...
  • Price differences also become a factor in cases where a driver has a poor driving record and/or drives a high-value vehicle
  • Drivers who qualify for non-standard insurance coverage are classified as high-risk drivers based on their past driving records
  • When considering standard versus non-standard versus preferred plans, standard and preferred plans drivers carry a low-risk profile when compared to drivers with non-standard coverage

In most states, the law requires drivers to carry auto insurance coverage. This coverage should meet state requirements in terms of how much is required for property loss, medical costs, and repair costs.

As many insurance carriers are privately owned, prices can vary considerably from one insurer to another.

Price differences also become a factor in cases where a driver has a poor driving record and/or drives a high-value vehicle.

Inevitably, risk factors drive insurance premium rates, so drivers who fall into a high-risk category may have to purchase coverage from non-standard auto insurance companies.

While non-standard coverage tends to be more expensive, some drivers may actually benefit cost-wise when certain conditions are met.

Check your coverage and price options with your zip code in our FREE auto insurance comparison tool above!

Standard vs. Non-Standard Coverage

AdobeStock_22569022-1600x1600

Much like the rating systems used with other types of auto insurance coverage, auto insurers use classifications to determine a driver’s risk level (or tier) and the type of insurance coverage needed.

The three most commonly used levels include:

Because of the special circumstances that come up with non-standard policies, many companies specialize in offering non-standard auto insurance.

Standard auto insurance companies offer policies that cater to people with other circumstances. Some companies also offer all three types of insurance coverage.

Ultimately, a driver who qualifies for non-standard insurance does not meet the qualification requirements for standard or preferred plans.

Auto insurance companies look at a driver’s past driving record and the type of car involved to determine whether non-standard insurance is needed.

Auto Insurance Risk Ratings

Auto insurance companies assign drivers to different tier levels based on risk rating factors. Since insurance coverage requirements can vary from state to state, price ranges can differ considerably across state lines.

Price ranges between local companies can also vary considerably with private insurance companies when compared to government mandated risk insurance plans.

When considering standard versus non-standard versus preferred plans, standard and preferred plans drivers carry a low-risk profile when compared to drivers with non-standard coverage.

Not surprisingly, the higher the risk the higher the insurance premium so drivers with non standard cover often pay considerably more than those with standard or preferred coverage.

As premium payments are designed to cover the cost of potential or predicted future claims, insurers may use different risk rating factors when determining the cost to insure standard, non-standard and preferred drivers.

Some of the most commonly used risk factors include:

  • The type of coverage selected (deductible versus no deductible, full coverage versus liability coverage, etc.)
  • The type of car driven
  • Driving history
  • Frequency of car usage

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

Driver Characteristics

Drivers who qualify for non-standard insurance coverage are classified as high-risk drivers based on their past driving records. Someone who has a DUI on their record would fall in this category.

Drivers who’ve been involved in serious car accidents or have filed several claims over the years may also require non-standard insurance coverage.

Driver characteristics also extend to the type of car a person has.

People who drive specialized cars -such as muscle cars, custom-built cars or high-powered sports cars- also fall under the high-risk category, which usually calls for non-standard insurance coverage.

High-risk rating factors may also include drivers who show long lapses in auto insurance coverage for whatever reasons. People with little to no driving experience, such as teenagers may also require non-standard coverage.

Qualifying Factors

AdobeStock_83054003-1600x1600

Since non-standard insurance plans cater to high-risk circumstances, some drivers may be able to use this specialty insurance to their advantage when it comes to finding lower premium rates.

It’s not uncommon for large, well-known insurance companies to own smaller specialty companies that offer

It’s not uncommon for large, well-known insurance companies to own smaller specialty companies that offer non-standard insurance plans.

Because of the parent company’s resources, these non-standard insurance companies can offer more competitive rates than smaller non-standard companies.

People who qualify for standard auto insurance coverage can still purchase non-standard coverage. This can come in handy in cases where standard coverage rates are more expensive than non standard.

This occurs when a good driver needs to insure a high-value vehicle. Non-standard insurers may be able to offer better rates than a primarily standard insurance carrier.

Ultimately, a person’s driving record carries a lot of weight when it comes time for insurers to rate a driver’s risk level. This means a driver with a good record is more likely to find a good premium rate for non-standard plans when the car falls within a high-risk category.

To find the lowest rates, enter your zip code into our FREE car insurance comparison tool below!

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

[0-9]
[0-9]