If a driver receives a high-risk classification from their auto insurance company, they may have to buy a nonstandard auto policy. While nonstandard policies generally look like standard auto insurance policies, they are typically more expensive. Take a closer look at the basics of nonstandard auto insurance and consider why you may pay more for this coverage.
Understanding Nonstandard Auto Insurance
Auto insurers frequently sort drivers into different categories based on the financial risk they pose the insurer. Those who pose the highest level of risks are often classified as high-risk or nonstandard drivers, and the insurer may only offer these drivers nonstandard policies.
Nonstandard auto insurance will generally offer the same coverage as a standard auto policy (e.g., comprehensive, collision, liability and uninsured motorist). However, it is often more expensive. The higher costs usually stem from the fact that high-risk drivers generally file frequent or expensive claims against their auto policies, creating more risk exposure for the auto insurer. The insurer will have to charge more money to accommodate the cost risk they assume by insuring the driver.
What Drivers Need Nonstandard Auto Insurance?
Drivers may have to buy nonstandard auto insurance if they:
-
Have a history of accidents
-
Have received multiple citations for reckless driving
-
Have received DUIs, DWIs or similar charges
-
Are under 25 years old
-
Carry an SR-22 certificate
-
Own a luxury vehicle, racecar or other vehicles that have higher risks of theft or significant losses
-
Own vehicles with salvage titles
-
Have previously driven uninsured or underinsured
For instance, if you receive a DUI, your auto insurer will probably view you as someone more likely to cause accidents and file expensive claims. As a result, the insurer may classify you as a high-risk driver and offer you a nonstandard policy at a higher rate. However, insurers also can cancel a driver’s coverage once they become too much of a risk to insure. As a result, if you receive a high-risk classification, you may have to buy new auto insurance from a company offering nonstandard coverage.
Need Nonstandard Auto Insurance in Tennessee?
Getting auto insurance as a nonstandard driver may be a bit more complicated. However, Tennessee Auto Insurance Agency can make the process easier for drivers in the communities we serve. Contact us today to learn more about auto insurance.