How is Nonstandard Auto Insurance Different Than Standard Auto Insurance

Understanding the differences between standard and nonstandard auto insurance coverage can help you make informed decisions that best suit your needs and circumstances.

Defining Standard Auto Insurance

Standard auto insurance is typically offered to drivers who are considered low-risk by insurance companies. These drivers usually have clean driving records and a history of responsible behavior on the road. Standard policies often come with various coverage options, including liability, collision and comprehensive coverage, providing a broad range of protection for different scenarios.

Insurance companies view standard auto insurance as less risky, which often translates to lower premiums for policyholders. Drivers who qualify for standard insurance are generally seen as less likely to file claims, making them more attractive to insurers. This type of insurance is widely available and can be obtained from most major insurance providers.

Understanding Nonstandard Auto Insurance

Nonstandard auto insurance is designed for drivers who may not meet the criteria for standard insurance. This can include individuals with less-than-perfect driving records or those who have had coverage lapses. Nonstandard insurance caters to higher-risk drivers, offering them the necessary coverage despite their risk profile.

Because nonstandard insurance is tailored to higher-risk drivers, premiums are typically higher compared to standard policies. Insurance companies charge more to offset the increased likelihood of claims.

Drivers who require nonstandard insurance might find it more challenging to secure coverage from mainstream providers. Instead, they may need to seek out specialized insurers who focus on nonstandard policies.

Learn More

Contact HSB Insurance Agency, LLC to learn about your auto insurance options and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.