Non Standard Auto Insurance: What You Need To Know Before Getting Coverage

Non standard auto insurance, also known as high-risk auto insurance, is coverage for drivers who may have a more difficult time securing traditional car insurance due to factors like a poor driving record, a young age, or prior lapse in coverage. While it may come with higher premiums, non standard auto insurance allows high-risk drivers to legally operate a vehicle on the road.

There are various reasons why someone may be considered a high-risk driver, such as multiple traffic violations, DUI convictions, at-fault accidents, or even being a new driver. Insurance companies use statistics and risk assessment tools to determine the likelihood of a driver filing a claim, and those deemed high-risk are typically charged higher rates to offset the increased chance of an accident.

In this article, we will delve deeper into non standard auto insurance, exploring what it is, how it works, who needs it, and where to find it.

What is Non Standard Auto Insurance?

Non standard auto insurance is a type of coverage meant for drivers who are considered high-risk by insurance companies. High-risk drivers are more likely to file claims, leading to potential financial losses for insurance providers. To mitigate this risk, insurers charge higher premiums to compensate for the increased likelihood of accidents or violations.

The coverage offered under non standard auto insurance is similar to standard car insurance, including liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection (PIP) coverage. However, the premiums for non standard auto insurance are usually higher due to the higher risk profile of the insured individual.

Who Needs Non Standard Auto Insurance?

Several categories of drivers may require non standard auto insurance, including:

1. Drivers with multiple traffic violations: Those with a history of speeding tickets, reckless driving, or other moving violations may be considered high-risk and require non standard auto insurance.

2. Drivers with DUI convictions: Individuals convicted of driving under the influence (DUI) are often seen as high-risk drivers and may need non standard auto insurance to legally operate a vehicle.

3. Young or inexperienced drivers: Teenagers or individuals with limited driving experience are more likely to be involved in accidents, making them high-risk candidates for non standard auto insurance.

4. Drivers with prior insurance lapses: Individuals who have allowed their car insurance to lapse or have been uninsured for a period of time may need non standard auto insurance to obtain coverage again.

5. Drivers with poor credit history: Some insurance companies use credit scores as a factor in determining insurance premiums; those with poor credit may be considered high-risk and need non standard auto insurance.

Where to Find Non Standard Auto Insurance

While standard auto insurance is readily available from most insurance companies, non standard auto insurance may require more specialized providers. High-risk drivers can explore the following options to find non standard auto insurance:

1. Specialized high-risk insurance companies: Some insurers specialize in providing coverage for high-risk drivers and offer non standard auto insurance tailored to their needs.

2. Independent insurance agents: Independent agents work with multiple insurance companies and can help high-risk drivers compare rates and coverage options to find suitable non standard auto insurance.

3. State assigned risk pools: In some states, high-risk drivers who are unable to secure coverage in the voluntary insurance market can apply for coverage through a state-assigned risk pool.

4. Online insurance marketplaces: Websites that allow users to compare insurance quotes from multiple providers can help high-risk drivers find non standard auto insurance at competitive rates.

FAQs

1. What factors can lead to someone being considered a high-risk driver?
Several factors can contribute to someone being classified as a high-risk driver, including multiple traffic violations, DUI convictions, at-fault accidents, young age or inexperience, prior insurance lapses, and poor credit history.

2. How does non standard auto insurance differ from standard auto insurance?
Non standard auto insurance is intended for drivers who are considered high-risk by insurance companies due to factors like those mentioned above. High-risk drivers incur higher premiums under non standard auto insurance to offset the increased likelihood of accidents or claims.

3. Are there specific coverages offered under non standard auto insurance?
Non standard auto insurance typically includes the same types of coverage as standard auto insurance, such as liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection (PIP) coverage. However, the premiums for non standard auto insurance are generally higher.

4. Where can high-risk drivers find non standard auto insurance?
High-risk drivers can explore specialized high-risk insurance companies, independent insurance agents, state assigned risk pools, and online insurance marketplaces to find non standard auto insurance that meets their needs.

5. Is non standard auto insurance more expensive than standard auto insurance?
Yes, non standard auto insurance often comes with higher premiums due to the increased risk profile of the insured individual. High-risk drivers may pay more for coverage under non standard auto insurance compared to standard auto insurance.

6. Can high-risk drivers improve their insurance rates over time?
High-risk drivers can take steps to improve their driving record, maintain continuous coverage, attend defensive driving courses, and work on improving their credit score to potentially qualify for lower insurance rates in the future.

In conclusion, non standard auto insurance provides coverage for high-risk drivers who may not qualify for standard auto insurance due to various risk factors. While it typically comes with higher premiums, non standard auto insurance allows high-risk individuals to legally operate a vehicle on the road. By understanding the differences between standard and non standard auto insurance, knowing who needs non standard coverage, and exploring where to find it, high-risk drivers can secure the coverage they need to stay protected on the road.