Auto insurance is essential for every driver, providing protection and peace of mind on the road. However, not everyone can easily obtain standard insurance coverage. Drivers with poor credit, traffic violations, or a history of accidents are often considered high-risk and may struggle to find affordable insurance. This is where non-standard auto insurance companies come into play. These companies specialize in providing coverage to drivers who fall outside the “standard” risk categories. In this article, we will explore what non-standard auto insurance is, how it works, and why it might be a good option for certain drivers.
What is Non-Standard Auto Insurance?
Non-standard auto insurance refers to insurance policies that cater specifically to high-risk drivers. These individuals may not qualify for traditional insurance due to factors such as a poor driving record, past lapses in coverage, or a lack of experience. While standard insurers typically prefer drivers with clean records, non-standard companies are willing to take on the added risk and provide coverage at a higher premium.
Drivers who might need non-standard insurance include:
- Those with multiple traffic violations or accidents
- Drivers with a DUI or DWI on their record
- People with a poor credit score
- Young or inexperienced drivers
- Individuals who have had a lapse in insurance coverage
- Drivers with specialized or exotic vehicles
How Non-Standard Auto Insurance Works
Non-standard auto insurance works similarly to standard insurance, offering essential coverage such as liability, collision, comprehensive, and uninsured motorist protection. However, because the drivers are considered high-risk, the premiums tend to be higher than those for standard policies.
Despite the higher premiums, non-standard insurance companies often offer flexible options to make coverage more accessible. For example, many of these companies provide:
- Flexible Payment Plans – Drivers may have the option to pay monthly, bi-monthly, or even weekly, making it easier to budget for insurance.
- SR-22 Insurance – For drivers who have had their license suspended due to serious infractions, non-standard companies may offer SR-22 filing services. This is a certificate required by some states to prove that the driver carries the minimum level of insurance.
- Customizable Coverage – Non-standard insurers often allow drivers to customize their policies based on their specific needs and financial situation. This means that they can opt for the coverage that best fits their circumstances, even if it’s just basic liability.
The Pros of Non-Standard Auto Insurance
For many high-risk drivers, non-standard auto insurance is not just an option but a necessity. While the premiums may be higher, there are several key benefits to obtaining coverage through a non-standard insurance company:
1. Access to Coverage
The primary benefit of non-standard auto insurance is that it provides coverage to those who might otherwise be denied by traditional insurers. Whether due to a poor driving record, credit score, or other factors, many drivers find themselves ineligible for standard policies. Non-standard companies fill this gap, ensuring that even high-risk drivers are not left without protection.
2. Avoiding Legal Consequences
In most states, driving without auto insurance is illegal and can lead to significant fines, license suspension, or even jail time. Non-standard auto insurance allows drivers to remain compliant with state laws, avoiding these severe penalties.
3. Rebuilding Your Driving Record
While high-risk drivers may face higher premiums initially, maintaining a non-standard auto insurance policy and improving their driving habits over time can help lower their risk profile. Some non-standard insurers offer programs that reward drivers for safe driving, such as accident forgiveness or discounts after a certain period of clean driving.
4. Flexible Options
Non-standard auto insurance companies typically offer more flexible payment plans and coverage options, making it easier for drivers to tailor their policies to fit their budget. This can be particularly beneficial for those who are working to rebuild their financial stability.
The Cons of Non-Standard Auto Insurance
Despite its advantages, non-standard auto insurance does come with some drawbacks. These should be carefully considered before purchasing a policy:
1. Higher Premiums
The most significant downside to non-standard auto insurance is the cost. Because high-risk drivers are more likely to file claims, insurers charge higher premiums to offset the risk. This can make non-standard insurance substantially more expensive than standard policies, particularly for those with severe infractions on their record.
2. Limited Coverage Options
While non-standard insurers may offer customizable policies, the range of coverage options can sometimes be more limited compared to standard companies. High-risk drivers might not have access to certain add-ons or perks, such as roadside assistance or rental car coverage.
3. Potential for Policy Lapses
Due to the higher premiums, some drivers may struggle to keep up with payments, leading to policy lapses. A lapse in coverage can further damage a driver’s insurance record and lead to even higher rates in the future. It is crucial for high-risk drivers to prioritize maintaining continuous coverage to avoid this situation.
Top Non-Standard Auto Insurance Companies
If you’re in the market for non-standard auto insurance, several companies specialize in providing coverage to high-risk drivers. Some of the most well-known providers include:
- The General Known for its affordability and flexible payment options, The General is a popular choice for drivers with less-than-perfect records.
- Dairyland Auto Dairyland is another insurer that specializes in non-standard auto insurance, offering SR-22 filing services and flexible payment plans for high-risk drivers.
- Acceptance Insurance Acceptance Insurance provides coverage for drivers with a variety of risk factors, including those with past DUIs or multiple violations. The company is known for offering affordable rates and online policy management.
- Infinity Auto Infinity Auto offers a wide range of coverage options for non-standard drivers, including those with specialized vehicles or a need for SR-22 insurance.
- SafeAuto SafeAuto focuses on providing minimum coverage policies at affordable rates, making it a go-to option for budget-conscious high-risk drivers.
Tips for Lowering Non-Standard Auto Insurance Costs
If you need non-standard auto insurance but are concerned about the cost, there are several strategies you can use to help lower your premiums:
- Improve Your Driving Record – One of the most effective ways to lower your insurance rates over time is to improve your driving habits. Avoid traffic violations, accidents, and claims to gradually reduce your risk profile.
- Bundle Policies – If possible, consider bundling your auto insurance with other types of coverage, such as home or renters insurance. Many companies offer discounts for bundling.
- Shop Around – Not all non-standard insurance companies are the same. Take the time to compare quotes from different providers to find the best rates for your situation.
- Take a Defensive Driving Course – Some insurers offer discounts for drivers who complete a certified defensive driving course, which demonstrates a commitment to safer driving practices.
- Increase Your Deductible – Raising your deductible (the amount you pay out-of-pocket before your insurance kicks in) can lower your premium, but make sure it’s an amount you can afford in the event of a claim.
Conclusion
Non-standard auto insurance companies provide a vital service for drivers who struggle to obtain coverage through traditional means. While the higher premiums may be a challenge, the ability to maintain legal, continuous coverage is invaluable. By understanding the benefits and drawbacks of non-standard insurance, drivers can make informed decisions and work toward improving their driving records and reducing their insurance costs over time. With the right approach, even high-risk drivers can find affordable and reliable auto insurance that meets their needs.