Some drivers with high risk ratings may get rejected by an auto insurance company after underwriters find some unfortunate events in their driving history--nonstandard auto insurance is an alternative: companies selling this product have demonstrated they are more comfortable with issuing policies to high risk drivers. Drivers with the highest risk often have to go to an assigned risk Car Insurance Quote pool, where the government forces an insurer to cover them, but often, non standard auto insurance can be a better bargain.
What Is Nonstandard Auto Insurance?
Some mainstream auto insurance companies provide non-standard auto insurance as part of a separate "tier" of products. Drivers can also find specialized non-standard auto insurance companies who only deal in these kind of high-risk policies.
Younger drivers with an accident on the record may also find it difficult to get standard insurance. Nonstandard auto insurance is also useful for those whose juvenile auto-related offenses have affected their driving record before they even get their drivers license. Driving a high risk sports car or other specialty vehicle can also drive an individual into a category where they may need nonstandard auto insurance.
Who Must Get Non-Standard Auto Insurance
Drivers may be placed in the non-standard auto insurance category for a variety of reasons. There are two basic reasons that people shop for non-standard auto insurance: either 1) They are required to hold a special plan by their state or local government because of a severe driving offense, or 2) They were dropped by their traditional insurer for a variety of reasons. These are very different situations so let's look at them differently.
Drivers whose poor record prevents them from getting a traditional insurance policy are in a particularly tough spot. Even with a non-standard policy, they're likely to pay very elevated rates. The insurer will always consider you to be an extra risk if you have offences like reckless driving or DUI on your record. In addition, many states now require this type of high-risk driver to carry special policies.
Drivers who were dropped from their traditional insurer may have more options. There are a few reasons you may have been dropped from traditional coverage.
- Too many claims. A driver who has had too many accidents in a short period of time may find themselves dropped from their original insurer.
- High value vehicles. Drivers who have a vehicle with an especially high value may have a hard time finding coverage from a traditional insurer because it's considered to be an extra risk.
- Serious accidents. If you've recently been involved in a serious accident which required an extensive, costly insurance claim, you may be dropped from your traditional insurer.
- High performance or specialized vehicle. Top notch performance vehicles and exotic cars fall into a special category that some insurance companies don't accept.
- Inexperience drivers. An inexperienced driver who is seeking coverage separate from a family policy may be forced to get non-standard coverage.
- Lapses in coverage. If you haven't had coverage for some reason (you haven't been driving, or you've been driving without insurance) you pose a special risk and will probably be in the market for a non-standard policy.
How to Shop for Non Standard Auto Insurance
Here are some tips to go about shopping for nonstandard auto insurance:
- Look into assigned risk. Try to figure out if your assigned risk company would offer better rates than a nonstandard auto insurance company.
- Find out about your state's insurance risk rating system. Some U.S. states have now gone to a tiered auto insurance system, where a driver's computerized history can yield a more sophisticated result. In these kinds of systems, more high-risk drivers can get covered. Find out about how your state's system will affect your search for nonstandard auto insurance.
- Use online calculators and other tools.Some websites of insurers have developed handy tools for consumers. Check out sites online to get multiple non standard auto insurance rates you can use to identify the best deals for you as an individual or for your household.
- Downgrade your ride. Switching from a luxury or sports car model to an older, less flashy vehicle can also bring down rates for high-risk drivers.
Take advantage of the above tips for helping yourself to get non-standard auto insurance rates that you can afford, to stay on the road legally while working on your insurance rating score for a safer and less costly future.