The Difference Between Standard and Non-Standard Auto Insurance Explained
Finding car insurance can be confusing. Not only do you have to know the difference between standard vs non-standard auto insurance, but there are so many options out there to choose from, it’s easy to get overwhelmed.
Not anymore though. We’re going to help demystify car insurance so you know exactly what to look for.
Free Car Insurance Comparison - Save up to 30%
No junk mail. No spam calls. Free quotes.
No Signup required
What’s Standard Auto Insurance?
Standard auto insurance is designed for low risk drivers that insurance companies can afford to give low rates to. Every top insurance company will have standard auto insurance and the coverage won’t vary too widely between providers.
Every insurance provider calculates the risk of every driver before extending them insurance, and many drivers fall into a low-risk grouping. This means that a variety of factories including driving history mean that you’re likely to not cost insurance companies more than you pay in premiums. Calculating this risk helps insurance companies avoid going under from too many insurance claims.
Many factors go into determining your risk level, including:
- Make, model, and vehicle
- Driving record
- Driving habits
Having this information handy when you’re looking for insurance will help you qualify for standard auto insurance, which is your best bet to get low insurance rates with the coverage you need.
What’s Non-Standard Auto Insurance?
Non-standard auto insurance is where insurance providers have more flexibility. They can charge higher premiums but also insure those who wouldn’t qualify for standard auto insurance.
Non-standard auto insurance is generally for high risk drivers. Insurance providers know that these types of drivers are more likely to file a claim (or many) so they need to charge higher premiums to make it worth their while.
You may need non-standard auto insurance if:
- You have several traffic violations on your driving record
- You’re a young driver (typically under 25)
- You drive a flashy or rare car
- You’ve had a lapse of insurance coverage
- You have poor credit
- Have made many insurance claims in the past
- You have a foreign driver’s license
Other than the cost, the coverage ends up being the same as standard auto insurance in most cases, although it varies from provider to provider because there’s less uniformity for non-standard auto insurance.
Standard vs Non-Standard Auto Insurance
So, what is the difference between standard and non-standard insurance? It boils down mainly to cost.
Drivers with good records can get standard auto insurance and the low rates that come with it. Those who can’t qualify for standard auto insurance will have to pay higher rates, but at least they can still be insured.
The good news is that just because you don’t currently qualify for standard auto insurance doesn’t mean you never will. It’s entirely possible to move from a non-standard auto insurance policy to a standard one by improving your risk level to insurance companies. This can mean improving your credit, driving a more conservative car, avoiding any driving infractions, and more.
- Looking to Save on Car Insurance in California? Here’s How 26-12-2022
- Everything You Need to Know About Car Storage Insurance 21-10-2022
- Should You Get a Collision Deductible Waiver? Find Out Here. 21-09-2022
- Health Insurance Options for Self-Employed Workers 10-08-2022
- Does Health Insurance Cover Oral Surgery? 13-07-2022
- Why the Stimulus Package Is a Game Changer for Health Insurance 23-06-2022
- Jewellery and Designer Clothing Insurance 26-01-2023
- How Home Insurance Cost Are Rising As Climate Change Worsens 29-08-2022
- Does Home Insurance Cover Mold? 08-08-2022
- Why You Should Get Life Insurance Even If You Don’t Have Kids 01-11-2022
- Life Insurance For Seniors Over 85 12-10-2022
- Life Insurance For Seniors Over 80 02-08-2022
- Will Health Insurance Cover New Alzheimer’s Drug, Aduhelm? 15-06-2022
- Medicare for All 08-12-2021
- What Is The Medicare Annual Enrollment Period? 14-10-2021
- The Biggest (and Most Dangerous) Motorcycle Safety Myths 06-12-2022
- Which is Safer for Motorcycles: Highways or the Streets? 06-12-2022
- What Are the Safest Cities to Ride Your Motorbike? 06-12-2022