If you’re looking for a new auto insurance policy, you may have come across the term “non-standard insurance.” What does this mean? Non-standard insurance is simply a category of auto insurance especially for people who are considered higher risk by insurance companies. And this group of people is growing all the time. Some reasons you might need a non-standard auto insurance policy include:
- You have multiple violations on your driving record.
- You have serious violations, such as driving while intoxicated (DWI) or driving under the influence (DUI), driving with a suspended license, reckless driving, or a major (more than 16 miles over the speed limit) ticket.
- You must carry an SR-22.
- You have recently had a serious auto accident.
- You have bad credit or a lack of credit history.
- You drive a specialized or expensive vehicle, such as a high-powered sports car or custom-built car.
- You’ve never been insured or you have had a lapse in your coverage.
- You are a teenager or a senior citizen.
- You have had your license suspended or revoked.
“Non-standard” does not mean “sub-standard”—the term has nothing to do with the financial health of the insurance company or the coverages it offers. Non-standard companies must follow all state laws and regulations. They offer the same types of coverage that standard ones do, but to a broader range of potential customers. Some insurance companies specialize in non-standard insurance, while others offer both standard and non-standard policies.
Non-standard insurance usually offers higher risk drivers better coverage at a lower price than a state-assigned risk pool, the other option open to drivers who do not qualify for standard insurance policies.
You don’t have to fall into one of the above-listed categories to purchase a non-standard policy. Generally, non-standard policies cost more than standard ones (because of the perceived higher risk factors), but occasionally they will offer a more competitive rate than a standard policy. It’s a good idea to check with your independent insurance agent who will be able to help you find the option that is best for you.
L & M Insurance Group, Inc., offers auto insurance policies and carriers with rates in all tiers including preferred, standard, non-standard, and specialty. We offer the lowest rates, best payment options and exceptional service of any agency in east Hillsborough County.