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FG Trade/Getty Images September 19, 2022 Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products. Amy Sims is a managing editor for Bankrate, leading a team responsible for creating educational insurance content. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Standard auto insurance is for drivers the insurance company considers a lower risk. Nonstandard car insurance is for high-risk drivers, who have been canceled, nonrenewed, have had a serious infraction or have repeat accidents. If you cannot qualify for a standard auto policy, your only option may be nonstandard insurance. Understanding the difference between standard vs. nonstandard car insurance may help you get the right coverage and insurance rate. It may also help you avoid behaviors that could deem you a high-risk driver. Compare rates and save on auto insurance today! Get quotes Close X RatesRates keep going up in 2022. Compare rates and save on auto insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More RATE INCREASE ALERT Rates increased up to 12% this year
Shop for a better rate before you renew your current policy. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More Insurance Auto Key takeaways Nonstandard car insurance presents a greater risk to insurers, making it more expensive than standard insurance. New drivers, those with poor driving history, having a lapse in coverage and having a foreign driver’s license can be considered high-risk drivers. Shopping around with multiple carriers may help high-risk drivers get the best rates on nonstandard car insurance. What makes you a nonstandard driver
Nonstandard insurance was created for unable to obtain a standard car insurance policy. But who is considered high risk? Auto insurers typically qualify the following drivers as nonstandard or high risk: New drivers: often face high premiums because they risk being involved in accidents. Inexperienced drivers with repeat accidents or tickets may need to find coverage from a nonstandard insurance company. Foreign driver’s license: A visitor or temporary resident may not be eligible for standard auto insurance as a driver with a U.S. license. Lapse in coverage: Not having continuous auto insurance makes drivers riskier to insurance companies, especially considering car insurance is required in most states. Incidents on driving history: Speeding tickets, car accidents or a DUI conviction could flag a driver as nonstandard. The severity and frequency of the incidents, plus the insurance company’s comfort with risk, can affect whether a risky driver is ineligible for standard car insurance. Required to carry an SR-22: Drivers who had their license suspended or revoked may have to file an SR-22 certificate as proof they have at least the required minimum auto insurance coverage needed in their state. The scenarios above could all classify a driver as a higher risk to insure. New or foreign drivers or those with a history of accidents or lapse in coverage may be viewed as more likely to be involved in future accidents and costly claims. An auto insurer may not offer standard coverage, or if they do, premiums could be higher. How is nonstandard car insurance different from standard insurance
Nonstandard insurance covers higher-risk drivers who may no longer qualify for standard coverage. The largest differences between standard vs. nonstandard auto insurance are cost and available auto insurers. Nonstandard car insurance is typically more expensive. Purchasing nonstandard insurance works the same way as buying standard coverage. To find the best price, shop around and compare carrier quotes. Since premiums for nonstandard insurance are typically higher, shopping around could help you find the most affordable premium. Once you choose a carrier, you can purchase a policy. If you are required to file an SR-22, you can ask the insurer to file it with the state on your behalf as proof that you are properly insured. How are auto insurance premiums determined
Auto insurance premiums are determined the same way whether you get standard or nonstandard insurance coverage. Insurance carriers use to determine how much you . These factors may include: Your ZIP code Prior insurance history Driving record of all household members Claims history of all household members Age Gender In many states, your is a factor in auto insurance premiums. California, Hawaii, Massachusetts and Michigan do not allow credit scores as a rating factor. Certain states, such as Hawaii and Massachusetts, also do not consider gender or age when determining car insurance premiums. As far as the carrier you choose, the same level of coverage could cost more or less. Some nonstandard insurance companies specializing in high-risk car insurance may help you save on premiums. Insurers also rate incidents differently, such as at-fault accidents and speeding tickets, using proprietary algorithms to calculate premiums. Frequently asked questions
What companies offer nonstandard insurance
If you were canceled or nonrenewed by your existing carrier, looking for a nonstandard insurance company is the best alternative. Carriers that offer nonstandard car insurance include Geico, Progressive, SafeAuto, and The General.
If I received a letter of nonrenewal from my car insurance company how can I get new coverage
A car insurance company may cancel your coverage or choose to nonrenew it. If this is the case, you will need to find vehicle insurance elsewhere. Finding a nonstandard insurance company may be your best option if you were nonrenewed because of an incident such as a DUI conviction or multiple claims in a short time. Nonstandard carriers may be more willing to work with you and could provide your state’s Department of Motor Vehicles (DMV) with an SR-22 certificate proving you are legally insured.
When am I eligible for standard car insurance
If you have a nonstandard auto insurance policy, you may be eligible for standard coverage after a major violation has fallen off your driving record or you have maintained car insurance for six months or longer. Typically, insurance companies want to see that you can drive safely and maintain car insurance. Guidelines vary by each standard insurance company, and you may be eligible for standard coverage earlier, or you may need to keep nonstandard coverage for longer. Time frames will vary depending on the rules of the standard company you are considering. SHARE: Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products. Amy Sims is a managing editor for Bankrate, leading a team responsible for creating educational insurance content. Related Articles