Nonstandard auto insurance, also known as high-risk auto insurance, is one of the most common car insurance for drivers. It is designed for drivers who have difficulty obtaining coverage through traditional insurance companies due to factors such as poor driving records, lapses in coverage, or specific personal circumstances.
If you’re just hearing about this insurance type, then you’re in the right post. Follow us as we delve into everything you need to know about nonstandard auto insurance, including what it is, who needs it, coverage options, and how to find the right policy.
What is Nonstandard Auto Insurance?
Nonstandard auto insurance is a type of insurance coverage tailored for high-risk drivers who may have trouble obtaining coverage from standard insurance companies. High-risk drivers are those who pose a higher likelihood of filing claims due to factors such as traffic violations, accidents, DUI convictions, or poor credit history. Nonstandard auto insurance providers specialize in offering coverage to these drivers, albeit at higher premiums than standard insurance policies.
Who Needs Nonstandard Auto Insurance?
Several factors may lead drivers to require nonstandard auto insurance, including:
- Poor Driving Record: Drivers with a history of traffic violations, accidents, or DUI convictions may be considered high-risk by traditional insurance companies and may need nonstandard auto insurance.
- Lapses in Coverage: Drivers who have experienced lapses in their auto insurance coverage or have been uninsured for an extended period may be required to obtain nonstandard coverage until they can demonstrate continuous coverage.
- Specific Personal Circumstances: Certain personal circumstances, such as being a newly licensed driver or having a low credit score, can also lead to the need for nonstandard auto insurance.
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How Nonstandard Auto Insurance Works
When you ask for a price for car insurance, you’ll share personal details like your age, where you live, your driver’s license number, and if you had insurance before. You’ll also tell them about your car, like its type, when it was made, and how much you’ve driven it. With this info, the insurance company decides how likely you are to cause accidents or need repairs.
Each insurance company looks at risk differently, and not all of them offer nonstandard insurance. However, once you buy a policy, nonstandard auto insurance works just like any other car insurance. But you might pay more for it.
Coverage Options in Nonstandard Auto Insurance
Nonstandard auto insurance policies may differ slightly in coverage options and premiums compared to standard policies, but they generally provide similar types of coverage to ensure adequate protection for drivers. Let’s explore these coverage options in more detail.
Liability Coverage
This fundamental aspect of auto insurance pays for damages and injuries you cause to others if you’re found to be at fault in an accident. It typically includes bodily injury liability, covering medical expenses and lost wages for the other party, and property damage liability, which covers repairs or replacement for their damaged property. Having liability coverage is often a legal requirement in most states to drive legally on the road.
Collision Coverage
Collision coverage steps in to help pay for the repairs or replacement of your vehicle if it’s damaged in a collision with another vehicle or object, regardless of fault. This coverage can be especially valuable in situations where you’re involved in a single-car accident or a collision with an uninsured driver.
Comprehensive Coverage
While collision coverage protects your vehicle from damages resulting from collisions, comprehensive coverage protects a wider range of non-collision events. This includes damages from theft, vandalism, fire, natural disasters like floods or storms, falling objects, and even animal collisions. Comprehensive coverage can be particularly beneficial for drivers in areas prone to severe weather or high rates of theft and vandalism.
Uninsured/Underinsured Motorist Coverage
Despite legal requirements for auto insurance, some drivers may still operate vehicles without adequate coverage. In such cases, uninsured/underinsured motorist coverage protects you if you’re involved in an accident with a driver who lacks sufficient insurance coverage or none at all. This coverage can help cover your medical expenses and vehicle repairs. Ensuring you’re not left financially vulnerable in an accident caused by an uninsured or underinsured driver.
How Much Does Nonstandard Auto Insurance Cost?
Nonstandard auto insurance usually costs more than standard car insurance. The exact price depends on various factors, such as your driving history, car type, and where you live. Since nonstandard insurance is for people with a higher risk of accidents, the premiums can be higher to cover that risk.
How to Find the Right Nonstandard Auto Insurance Policy
Finding the right nonstandard auto insurance policy requires carefully considering your needs and circumstances. Here are some steps to help you find suitable coverage;
- Determine the types and amounts of coverage you need.
- Research nonstandard auto insurance providers that specialize in serving high-risk drivers. Compare quotes, coverage options, and customer reviews to find reputable insurers.
- When applying for nonstandard auto insurance, be honest and accurate when providing information. Be transparent in providing your driving history, vehicle, and personal details. This ensures that you receive accurate quotes and coverage options.
- Inquire about available discounts and savings opportunities that may help lower your insurance premiums.
- Before purchasing a nonstandard auto insurance policy, carefully review the terms, conditions. It will help you to understand what is covered and what is not. Ask questions if you’re unsure about any aspect of the policy.
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Where Can You Get Nonstandard Auto Insurance?
These are companies offering nonstandard auto insurance;
- Acceptance Insurance
- Alfa Insurance
- Bristol West (part of Farmers)
- Dairyland
- Direct Auto Insurance
- Gainsco (recently acquired by State Farm)
- Geico
- The General
- Kemper
- Mercury
- National General (recently acquired by Allstate)
- Progressive
- Safe Auto
How Long Are You Considered a High-Risk Driver?
You’re usually considered a high-risk driver for a few years if you’ve had accidents, traffic violations, or other issues on your driving record. The exact time can vary depending on the insurance company and the severity of the incidents. Typically, these incidents stay on your record for three to five years. After that time, your status as a high-risk driver may improve, and you might qualify for lower insurance rates.
Conclusion
Nonstandard auto insurance provides a lifeline for high-risk drivers who may struggle to obtain coverage through traditional insurance channels. If you find yourself in need of nonstandard auto insurance, take the time to research and compare options. This will help you find the best coverage for your circumstances. What do you think about this post?
