What Are Nonstandard Insurance Companies
Nonstandard insurance companies offer auto insurance policies to drivers with special circumstances. This includes high-risk drivers and new drivers.
Edited byKelly LarsenUpdated January 5, 2023
Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
Most drivers are aware of different forms of vehicle insurance, like temporary car insurance, motorcycle insurance, and RV insurance. However, you should also know about nonstandard vehicle insurance. This is a special automobile insurance policy designed to provide coverage to drivers who cant obtain standard car insurance because they present a higher risk.
Though you might not require a nonstandard auto insurance policy now, this could change in the future.
Heres what you need to know about nonstandard insurance companies and which drivers require non-standard insurance:
You Rent Cars Frequently
Non-owner insurance might cost less than liability coverage at the rental counter if you rent often enough. It can also offer peace of mind if youre worried about getting in a rental car accident . It typically wont cover damage to the rental, but you may be able to get that coverage through a credit card or buy the collision-damage waiver from the rental car company.
» MORE:Rental car insurance explained
Deductible For Nonstandard Auto Insurance
A deductible is an amount of money that the insured must pay out-of-pocket before the insurance company covers a claim under the policy. A deductible can be a small or large amount, depending on the type of policy and the risk to the insurance company that the policyholder represents.
Typically, a high-risk policyholder will have a higher deductible than a low-risk policyholder. Also, the size of the deductible can influence the monthly premium amount. For example, if a policyholder opts for a high-deductible, their monthly premium may be lower. The reason for the inverse relationship between premiums and deductibles is that insurance companies have a lower risk of paying for a claim for policies with a higher deductible since the vehicle owner is on the hook for a larger amount of the costs associated with an accident.
Conversely, a low deductible may translate to a higher premium for a high-risk policyholder. However, it’s important to remember that if a person is in an auto accident and has a high deductible-low premium policy, the cost of the accident might exceed any savings from having low monthly premiums. In other words, the high out-of-pocket cost from the deductible might be so costly it negates any of the savings from the low monthly premiums.
Don’t Miss: No Payments For 90 Days Auto Loan
Best For Drivers Needing An Sr
In many states, drivers with DUIs, major violations, or a history of uninsured driving need a specific proof of insurance document . However, not all insurance companies will insure high-risk drivers, and not all insurance companies even offer SR-22 documentation.
If your driving history requires that you file an SR-22 with the Department of Motor Vehicles, you can qualify for a Dairyland car insurance plan quickly through its website and get the required SR-22 documentation you need to get back on the road.
Claims service available 24/7 online or via phone
Freedom to choose your own body shop
Highly competitive rates for high-risk drivers
Late payments can lead to loss of coverage
Customer complaints with claims process
No local agents
Surprisingly, Dairyland actually offers an abundance of discounts to customers. These discounts include:
Allstate And State Farm Enter The Nonstandard Auto Insurance Market
Allstate said in July that its buying nonstandard auto insurer National General for about $4 billion in cash. The deal is set to be completed in early 2021. National General reported about $5.6 billion in gross written premiums in 2019, with nonstandard auto policies accounting for 44%.
In September, State Farm agreed to buy nonstandard insurance provider Gainsco for about $400 million in cash. It is State Farms first acquisition of another insurance company in its 98-year history. The deal is expected to close in early 2021.
Also Check: Does Auto Insurance Cover Theft
Non Standard Insurance Companies: How They Work
Drivers may require non-standard insurance in certain circumstances. Some drivers, for example, require non-standard car insurance because they are high-risk. Others require specialized auto insurance for classic cars or supercars. Some people require non-standard auto insurance because they have multiple DUIs, while others require non-standard insurance because they have special insurance requirements. Which companies offer non-standard insurance in Texas and Florida? What are the best non-standard insurance companies in Texas and Florida? Continue reading to find a list of the best non-standard insurance companies in Texas and Florida. What is the distinction between standard vs non-standard insurance companies?
How Much Does Non
The cost of non-standard auto insurance depends on both the average premiums in your state and the reason you’re required to get non-standard coverage. A speeding violation may cause your rates to go up, but not as much as a DUI.
Surprisingly, age had the largest influence on rates in most states. Teenage drivers tend to pay higher rates than drivers guilty of DUI-related accidents.
Read Also: Auto Sales With Bad Credit
What Can You Do To De
While some factors like age or gender are outside your control, other factors that increase your driving risk class are completely manageable. In general, experts recommend that you take the following steps to de-risk your driving coverage:
- Take steps to improve your credit score
- Take a driver safety course
- Shop for better insurance rates three years after your last traffic violation
- Dont allow your auto coverage to lapse
How To Save On Your Non
Getting affordable non-standard auto insurance follows the same steps as if you were considered a good driver. Do some prior research and obtain quotes from at least three insurance companies that offer coverage for high-risk drivers.
Compare car insurance quotes as well as the exclusions and limitations each policy comes with and ask the agent how much coverage you would receive with this type of auto insurance. Its also important to learn what you can do as a driver to be eligible for a standard policy in the future.
Becoming a better driver takes time. Its a good goal to achieve so you aren’t tied to non-standard insurance forever.
What do you need to do to be considered a good driver? Abide by the traffic laws and regulations drive at safe speeds at all times keep a clean record with no accidents make all your payments on time and never drive when youre under the influence.
At Infinity Insurance we understand everyone should have access to quality insurance at a price they can afford. Thats why we offer non-standard auto insurance options for high-risk drivers. Call one of our friendly agents at 1-800-INFINITY to learn more about our auto insurance options orvisit our website to receive a free quote within minutes.
Recommended Reading: New Jersey Auto Insurance Companies
What Are Some Reasons A Person May Need Non
Non-standard auto insurance is a term to classify insurance sold to drivers whose risk factors make it difficult or impossible to obtain insurance at standard or preferred rates.
It doesnt take much to get into the non-standard insurance penalty box. Two or more at-fault accidents within three years, an at-fault accident where a person is injured, a DUI and speeding 15+ mph over the speed limit will put a person in the situation to need non-standard insurance, says Earl Jones, owner of Earl L. Jones Insurance Agency.
Once in the non-standard insurance market, Jones says, you may remain there for three to ten years depending on the state and the insurance company.
As Jones explained, there are several reasons why a driver may require non-standard auto insurance.
Who Is A Non
There are a number of reasons why you may be considered a non-standard or a high risk driver.
If you are a driver with low levels of driving experience and a higher vehicle value, you might be considered as non-standard or high risk by some insurance companies. If you have a high claims history or driving convictions or if you live in certain postcode areas, you should contact us or get a quote online.
You May Like: Used Car Dealerships Fort Lauderdale
Can You Move From Non
You can move from a non-standard auto policy to a standard auto policy. The primary things that factor into your rating tier for auto insurance are things like your driving record, your credit score and credit history, your age and your marital status. All of these can change over time.
Take precautions when behind the wheel. Dont take chances and dont break the law. This will help you maintain a clean driving record by not getting additional tickets or points added to your license while your past infractions start to fall off your record. There are also some insurance companies that will reward drivers for going to traffic safety or defensive driving classes.
Make sure you pay down any debt you have and pay your bills on time, which will raise your credit score. Statistically, people with low credit scores tend to file more claims and miss payments. If you raise your score, you will be seen as less of a risk to your insurance provider.
Drivers with sports cars are seen as being more likely to take chances on the open road.
You will also gain more experience and knowledge behind the wheel as time goes on, making you less of a risk to your insurance company. You will then qualify to move to a standard tier or possibly a preferred tier.
Standard Vs Non Standard Car Insurance
As discussed, a standard insurance policy is for individuals who are perfect drivers. They dont have a history of accidents, bad credit, or many tickets.
On the other hand, non standard auto insurance policies are apt for individuals who have a negative track in terms of driving. These types of drivers are called high-risk drivers.
If you are one of them, Payless Auto Insurance has the right policy type for you. Visit our insurance offices in Texas or call us at 1-877-469-2131. We assure you to provide you with the best auto insurance policy at an affordable price.
Have any Question? Ask us anything, wed love to answer!
Were here to listen:
- 2357 Jupiter Road Plano, Texas 75074
- Monday to Friday : 10:00 AM – 07:00 PM
- Saturday: 10:00 AM – 05:00 PM
Read Also: Car Dealerships In Casper Wy
Reasons You Might Need Non
Non-standard insurance is a broad term, and there are a variety of reasons you may have to get it. Generally, any factor that significantly raises your auto insurance rates indicates a non-standard tier of insurance.For example, you may fall into the non-standard tier if:
Editorial Note: The content of this article is based on the authorâs opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
How Many Drivers Are Considered Nonstandard
Research from data and analytics company Verisk shows nonstandard coverage makes up 20% of premiums for personal auto insurance. Others estimate it to be around 30% to 40% of the auto insurance market.
A study released in 2018 by the Missouri Department of Insurance found that areas of the state with large minority populations and lower incomes had greater concentrations of motorists rated as high-risk policyholders.
In June, the Consumer Federation of America complained that when auto insurers base premiums on socio-economic circumstances, including lower credit scores, they disproportionately harm Black drivers. The group said one of the factors that contributes to Black drivers paying more for auto insurance is that theyre more likely to purchase coverage from a nonstandard insurer.
Read Also: The General Car Insurance Michigan
Which Companies Sell Non
Non-standard car insurance is widely available in most regions across the U.S. from companies that specialize in it and those that also sell standard insurance.
Some non-standard auto insurance companies are owned by or affiliated with well-known standard insurance companies. For example, The General is affiliated with American Family, while Safe Auto is a subsidiary of Allstate.
Companies offering non-standard insurance include:
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
- The type of car driven
- Driving history
- Frequency of car usage
Also Check: Car Rentals In Austin Texas Airport
The Most Common Types Of Auto Insurance Coverage
All of this coverage falls under standard car insurance. They are the most basic auto insurance that a person with an average risk profile can avail of. Although standard auto insurance only includes liability, other types of coverage like comprehensive and collision coverage can be part of your basic auto insurance policy.
Look At Your States Assigned Risk Pool For Insurance
Some states have what is known as an assigned risk pool that is available to high-risk drivers who have been turned away by a majority of insurance providers. Insurers will be assigned uninsurable customers to cover regardless of risk level. Rates can get pretty high and this approach should be a last resort.
Don’t Miss: O’reilly Auto Parts Hillsboro
You Often Borrow Other Peoples Cars
The car owners insurance normally pays out for an accident, but if costs exceed their liability limits, youd be on the hook for the remainder.
Say youre at fault for an accident while driving a friends car, and the other driver needs $35,000 worth of medical care. If the friend who loaned you the car has only $25,000 of bodily injury liability coverage on the vehicle, youd be responsible for the remaining $10,000. Your non-owner policy could cover that expense.
For How Long Are You Considered A High
Luckily for you, a bad driving history won’t impact your insurance rates forever. In fact, most car insurance companies only look at accident and traffic violation records that span the past three years. Accidents and tickets older than this rarely factor into your insurance rates. However, DUI convictions are an exception to this rule: they typically impact your rates for up to five years.
Also Check: Auto Glass Repair Lincoln Ne
How Do I Get Non
Many insurance companies offer non-standard auto insurance as a separate tier of coverage. Some large insurers have subsidiary companies that offer non-standard coverage to high-risk drivers. These specialist companies may have better rates for non-standard insurance than larger companies.
You can purchase non-standard or high-risk auto insurance the same way you would any other policy. If your state requires you to file an SR-22, you’ll need your insurance company to file your form to prove to your state that you have adequate auto insurance. You’ll need to pay a filing fee, and you’ll see a significant increase in your premiums.
What Is Nonstandard Auto Insurance
Nonstandard auto insurance is offered to drivers considered to carry the most risk of an automobile accident. Auto insurance is a policy purchased by the owner of a vehiclefrom an insurance companyto help cover the cost of an automobile accident.
Nonstandard auto insurance is for vehicle owners who have a poor driving record or a history of accidents. Nonstandard auto insurance is typically more costly to the vehicle owner than a traditional policy since the insurance company has a greater risk that they may need to payout funds due to an accident.
Recommended Reading: Places That Will Buy My Car
Those With Bad Credit
Most states are allowed to use your credit score as a factor in how much you pay for insurance.
Those with a foreign license may pay more for auto insurance if they do not have a driving record in the U.S. Insurers cannot ascertain risk, so they are more likely to refuse coverage or require additional coverage.