What Is The Difference Between Standard and Non-Standard Auto Insurance?

Jul 14, 2021 | Personal Insurance

What is Auto Insurance?

Known for other names like car insurance, motor insurance, and vehicle insurance, auto insurance is a type of insurance that protects you from out-of-pocket expenses for damage and liability in the event of an accident or theft. It is designed to protect you and your family in case of a collision whether it is your fault or the other car’s fault. When you pay an insurance premium to your insurance provider, you will be assured of protection against financial losses.

Car insurance is mandated by almost all U.S. states. Depending on your insurance company, coverage will depend on your needs and budget.

The Most Common Types Of Auto Insurance Coverage

  1. Collision coverage – this covers damages to your car in case of an accident or collision with another car. It also covers collision with an object like a tree, or a telephone pole.
  2. Medical Payments or Personal Injury Protection (PIP) – also known as no-fault insurance, this coverage pays for medical expenses like injuries, lost wages and even funeral costs after an accident. 
  3. Property damage liability – this type of coverage pays for damages if you destroy another person’s property or belongings. This may include their house, their store, fences, or their car. 
  4. Comprehensive – this coverage is for damages caused by something other than a collision. It can be from natural disasters like storms, floods, earthquakes, vandalism, animals, falling objects, explosion, fires, riots, and the likes.
  5. Uninsured and Underinsured – if you are hit by a driver who does not have insurance or is underinsured, this coverage will help you pay for any medical bills, car repairs, and parts replacement.

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. Although standard auto insurance only includes liability, other types of coverage like comprehensive and collision coverage can be added to your basic auto insurance policy. 

Standard and Non-Standard Auto Insurance – What is the difference?

Standard Auto Insurance

This is mandated by most states before they can legally drive. For average-risk drivers, you have the option to get standard car insurance with additional coverages for your family’s protection and safety in cases of accidents or theft. Auto insurance will help you pay for repairs, replacements, and sometimes injuries to yourself or the other car’s occupants in case of a collision. Depending on how comprehensive your car insurance is, you will be protected from risks and financial burdens.

Basic Requirements for Standard Auto Insurance

To qualify for standard car insurance, there are a few basic requirements that a driver must possess in order to be considered. 

  1. A driver needs to have a clean driving history. There should be no record of driving under the influence (DUI), reckless driving, or numerous accidents.
  2. There must be no multiple filed claims for accidents and other mishaps.
  3. A driver must have a good credit history. Other considerations that insurers also look for are age, marital status, car type, car usage, and the neighborhood you live in.

All of this information helps the insurance company to estimate the possibility of future accidents and filing claims of the insured. 

Another benefit you get from standard auto insurance is that it is cheaper to pay for a premium compared to non-standard auto insurance. Again, depending on your add-ons or extra coverage, your premium payment will be way more beneficial than the financial burden an accident may cause you. 

A Non-Standard Auto Insurance

This is for drivers who are profiled as high-risked drivers. High-risked drivers are those who have tainted driving records and claims. They are the ones with bad driving records and/or drive cars that are costly to repair and are accident-prone. 

Things To Consider For Non-standard Car Insurance

  1. DUI conviction – driving under the influence or driving while intoxicated is a serious driving offense. And most of the time, this occurs more often than expected.          
  2. Multiple accident claims – a bad driving record will definitely mean more insurance claims thus making your insurer at risk of shelling out more money. 
  3. Multiple violations – this includes collisions, accidents, and traffic violations
  4. Young and new drivers – a teenage or new driver means less experience. Less experience means a higher chance of getting into an accident. However, if you are a careful driver, your rate will drop once you reach the age of 25 years old. 
  5. Old drivers drivers who are more than 65 years old are considered high risk as well. The physical and mental well-being of an older driver may present risks as well when driving.
  6. Lack of car registration every car should be registered. If you don’t have a car registration, you might not be able to get auto insurance at all. 
  7. Expired driver’s license – it is important to have an updated driver’s license. An expired license also means that you are driving without a license which is a crime in all states.
  8. Driving without insurance – without insurance, you must have proof that you can pay any damage to people or property. 
  9. Reckless driving – reckless driving means you have limited skills or driving with no control. The blatant disregard for the safety of others will definitely push you to pay a high premium for non-standard car insurance.
  10. Lapse in coverage – any period of time whether it be one day or one month or one year without insurance is considered a lapse in coverage. 

Other Risk Factors

  1. Driving race cars – racing cars are considered accident-prone. The risk involved is high for both the driver and the vehicle.
  2. Driving luxury cars – luxury cars can cause more payout by the insurer because of the high price in repairs and parts replacement. 
  3. Driving a custom-built, classic, or high-performance carthese are almost the same as luxury cars when service is needed for repairs.
  4. Lives in a neighborhood with high theft and vandalism rate – if you live in a neighborhood with a high crime rate, then the chances of having your car vandalized or broken into is much higher. 

The premium cost for non-standard auto insurance will definitely be higher than the standard insurance. Subject to risk factors, the amount you need to shell out will be based on the coverage that you are qualified for.

Basically, you are paying for non-standard rates because of the uncertainties it involves. To cut the cost of your premium, you must strive hard to get out of the non-standard auto insurance risk factor list fast. 

Can You Move From Non-standard Auto Insurance To Standard Insurance?

Yes, you can! However, it will take some time before you can move. Having a bad driving record will not be easily erased. A good tip is to know what put you in non-standard auto insurance in the first place. Knowing the reason will give you the advantage to correct the cause.

If you are a young and inexperienced driver, you will only need a few years before that status can be removed. Once you reach the age of 25 and you have no bad driving history, you can easily lower your rates and get standard car insurance. If you have an expired driver’s license, you can easily renew it as long as you don’t have a sketchy record with the DMV. All you need is to go to the department office and have it renewed.

If your coverage has lapsed, pay your premium as soon as possible for your insurance to be reinstated. There are many ways to change your insurance policy although it will take a little bit more patience before you can move to standard auto insurance again. 

How to Lower Your Auto Insurance Premium

Here are some more things that you can do to bring down your premium over time and make the move from non-standard to standard auto insurance.

  1. Drive carefully. Setting a good record of your driving history will eventually take you out from the high-risk list
  2. Improve your credit score. Paying your debts off will help you save money on your car insurance.
  3. Take defensive driving classes. If you can show proof that you have completed a class, most insurers will give you a discount on your premium.
  4. Sell your race car or a luxury car. Do you really need that? Maybe it’s time to get a regular car and save on premiums.
  5. Install a car alarm or an anti-theft device in your car to avoid being robbed or vandalized. 
  6. Pay your bills on time. Lapses in payment will raise up your premiums the next time you get your car insurance. 

Final Thoughts

There are several factors that will determine the best auto insurance in Dever, Colorado (or any other state) for you. Getting a good insurance company and agent will go a long way to get the best coverage for your car and get the best value on premiums.  Call us today and we can help you with that! We won’t disappoint!