February 10, 2022
Agency
What Is Nonstandard Auto Insurance?
An insurer often classifies drivers based on their risk to the insurance company. Drivers with the highest level of risk are often categorized as high-risk or nonstandard drivers, and the insurer may only offer nonstandard auto insurance to these individuals.
What Does Nonstandard Auto Insurance Offer Drivers?
Drivers who need nonstandard auto policies typically have major traffic violations or other significant operating risks on their records. Nonstandard auto insurance generally offers the same coverage as a standard auto policy (e.g., comprehensive, collision, liability and uninsured motorist), but it is often more expensive. This higher cost usually stems from the fact that high-risk drivers often file frequent or expensive claims against their auto policies, creating more risk exposure for the insurer. The insurer then has to charge more money to accommodate the cost risk they assume by insuring the high-risk driver.
What Drivers Need Nonstandard Auto Insurance?
Drivers who may have to purchase nonstandard auto insurance are ones who:
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Have a history of accidents.
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Have multiple citations for reckless driving.
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Have DUIs, DWIs or similar charges.
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Are under 25 years old.
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Carry an SR-22 certificate.
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Own a vehicle with a salvage title.
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Have a poor credit rating.
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Have previously driven uninsured or underinsured.
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Have a foreign driver’s license or no U.S. driving history.
Certain individuals may also need to purchase nonstandard auto policies if they have a luxury vehicle, racecar or another type of vehicle that has a higher risk of theft or significant loss.
For example, you receive a DUI. Your auto insurer may view you as likely to cause an accident and file an expensive claim. As a result, the insurer may classify you as high risk and offer you a nonstandard policy at a higher rate. Insurers may also choose to cancel a driver’s coverage if they become too much of a risk to insure. If you receive a high-risk classification, you may have to purchase new auto insurance from an insurer that offers nonstandard coverage.
Contact Us for Nonstandard Auto Insurance
Generally, nonstandard auto insurance is similar to the insurance available to regular drivers. Nonetheless, it’s essential to work with a qualified insurance agency, such as Hanway Insurance, who can help determine the type of coverage you need, whether that’s standard or nonstandard auto insurance.