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.
Larry Johnson brings over 23 years of experience writing insurance. He was the owner of Larry Johnson Insurance in Brandon for 13 years, and after selling his agency and taking some time off, he has joined L&M Insurance Group. Larry is excited to be back working with clients meeting their personal lines insurance needs. Call 813-672-4100 to get started