Key Differences Between Standard and Non-standard Auto Insurance

Understanding the key differences between standard and non-standard auto insurance can help you make informed decisions about your coverage.

Standard Auto Insurance

Standard auto insurance is typically offered to individuals with a clean driving record, good credit history and no significant claims history. Standard policies are designed to provide coverage at competitive rates.

Standard auto insurance usually includes liability coverage, which is required by law in most states. Liability coverage can cover third-party damage and injuries in an at-fault accident. Collision coverage can help pay for repairs to your vehicle if it is damaged in an accident. Comprehensive coverage can cover non-collision-related incidents such as theft, vandalism or natural disasters.

Non-standard Auto Insurance

Non-standard auto insurance is for drivers who may not qualify for standard coverage due to various risk factors, such as a history of traffic violations and at-fault accidents. Non-standard policies are also available for drivers with unique circumstances, such as those who have recently obtained their driver’s licenses or have had lapses in their insurance coverage.

The primary difference between standard and non-standard auto insurance lies in the level of risk associated with the policyholder. Non-standard insurance providers specialize in offering coverage to high-risk drivers, so the premiums for these policies are generally higher.

Despite the higher cost, non-standard auto insurance is essential for drivers who may otherwise struggle to obtain coverage. It ensures that they remain compliant with state laws requiring liability insurance and provides financial protection in the event of an accident. Non-standard policies offer coverage options similar to standard policies, including liability, collision, and comprehensive coverage. However, the terms and conditions of these policies may differ.

Contact Us

Contact Vim Rise Financial Services LLC for a personalized auto insurance quote. Our team can help you navigate the complexities of auto insurance and tailor a policy that best suits your situation.

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.