What’s The Difference Between Nonstandard And Standard Car Insurance?

By Mike Anderson Posted in Car Insurance News



Standard Insurance Versus Nonstandard

Standard car insurance is simply any type of car insurance you can obtain at preferred or standard rates. Nonstandard auto insurance is auto insurance given to drivers who are nearly impossible to insure, for one reason or another. Drivers that can not obtain standard insurance may be eligible for nonstandard insurance.

Who Qualifies For NonStandard Car Insurance

Anyone considered “high risk” by the insurance companies might qualify for nonstandard insurance. For example, if you have a serious violation on your driving record, like a DUI or DWI, then you probably need nonstandard car insurance. Some drivers over the age of seventy are consider “high risk” and would need nonstandard car insurance. It may also be the only option for those with a lot of violations on their driving record or have a history of filing numerous claims. Often times cars that are high value, like high-end sports cars, would need nonstandard insurance because the cost of replacing the car would be too expensive for standard insurance.

How NonStandard Car Insurance Works

Nonstandard car insurance is provided by nonstandard insurance companies. Nonstandard rates can be highly competitive but more restrictive. It may be cheaper to insure a high-end vehicle through a nonstandard policy than a standard policy. It works in the same way standard insurance works but they are willing to assign more risk at higher rates. In certain situations nonstandard car insurance can be cheaper than standard if you are a “high risk” driver.

Standard insurance companies may not be willing to insure you even at a higher rate. Nonstandard insurance is still susceptible to the same rate hikes as standard. If you get into an accident or another DUI or get more violations on your record, then your insurance premium will increase. There may even come a point when a nonstandard insurance company will decide you are too high risk for them. They usually don’t offer discounts for good driving and certainly not accident forgiveness.

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