If you’re wondering whether non-standard auto insurance might be the best option for your auto policy, it’s helpful to know what situations require non-standard auto insurance, and what role it plays within the general market. The American auto insurance system can be hard to navigate, but knowing your options can help you save money on a policy.
Basically, non-standard auto insurance is a product that helps a high risk driver to get covered with basic liability insurance to be legally on the road. Everybody needs some form of insurance for everyday driving. But it can be hard for a high risk driver or someone with a bad driving record to find a company that will ensure them. DUI/DWI convictions, accidents, or points on a driving record can boost a driver’s risk assessment through the roof, and lead traditional insurance companies to deny them coverage. With non-standard auto insurance, the policy is made to be able to cover a high risk driver. Some companies offering non-standard auto are your regular big auto insurance shops, but other companies specialized in these types of policies for high risk drivers.
Non-standard auto insurance is not the only option for a high risk driver. The options for getting coverage when you have a bad driving record or other liabilities are different according to the state that you registered your vehicle in. Some states have a tiered system, which makes it easier for a high risk driver to be covered in a conventional policy. In other states, high risk drivers can choose to use an assigned risk pool, where the state actually forces a conventional auto insurance company to cover that driver. You might assume that assigned risk coverage is more expensive because the insurer is acting under a mandate, but that’s not necessarily the case. Drivers who have a non-standard auto insurance and assign risk options should look into both, and make the best financial decision.
These days, insurers are also using much more to determine policy and premium rates. Even things like your credit score can make you a “bad risk” in the eyes of an auto insurer. Because there are some situations where mistakes on a database or underwriting can unfairly raise risk, it’s important to know why you have received a poor rating as a driver. Drivers can also request copies of their driving records, as well as credit reports and CLUE (claims history) reports to make sure they are not getting their rates raised due to false information.
The bottom line is, non-standard auto insurance is not for you unless you have some specific driving history that prevents you from getting regular auto insurance. However, if you’ve been denied by a conventional company, non-standard auto insurance can be the best solution for getting you on the road.