Wednesday, February 22, 2017

Lets have a conversation about Standard vs. Non Standard Auto Insurance

 
Finding the most suitable insurance coverage to fit your individual needs can be a complicated task. We will examine the common question about the differences between Standard and Non-standard auto insurance. 
 



 Standard coverage is designed for the low risk policy holder. Standard policies differ little from each other, mainly in terms of the scope of coverages and price.

Common features of Standard policies may include:

  • Standard policies typically have more restrictions in terms of which types of individuals they will cover.
  • Only individuals who fit into the low risk category will qualify for standard insurance, example, specific determining factors for coverage include driving record, that doesn't contain accidents, tickets for traffic violations, and filed insurance claims.
  • Standard policy forms are regulated by the State in which the policy is issued.
  • Under a standard policy, permissive drivers are generally covered
While non-standard insurance policies are also written on State approved policy forms, however, they are highly customized to the policyholders needs and therefore vary widely in coverage and price.

Common features of Non-standard policies may include:
 
  • Non-Standard policies are sometimes referred to as Excess & Surplus Lines (E&S).
  • Non-Standard policies may involve additional fees depending upon the specific coverage you require and your level of risk. If you are a high-risk applicant, you will pay premiums that reflect this.
  • Non-standard policies have a lot more flexibility regarding their acceptance of high-risk applicants who may not qualify for other standard insurance carriers.
  • Non-Standard policies may have more Teen drivers.
Non-Standard policies may include foreign license and lack a U.S. driving record.
  • Non-Standard policies may have no previous coverage.
  • Non-Standard policies may have lapsed auto coverages.
  • Non-Standard policies holders may have been convicted of a serious violation, such as reckless driving or driving under the influence.
  • Non-Standard policies may have more speeding tickets or other moving violations.
  • Non-Standard policies may have substandard credit (if you live in a state that lets insurers consider credit history when setting premiums).
  • Non-Standard policies holders may be required to have an SR-22 or FR-44, a special form the insurer must file on your behalf to prove to the state that you have car insurance. Some states require one of these forms for drivers who have had their licenses revoked or have been convicted of serious violations.
  • Non-Standard policies may drive a rare vehicle or super car, like a Lamborghini or a Bugatti Veyron.

I hope this information was helpful and clearly steers you in the right direction for your own personal auto insurance needs. Reach out to the professionals at Priority-One Insurance on the gulf coast for additional information on auto insurance.
More information visit Click PriorityoneInsurance





Powter, John. “Standard vs Non-Standard Insurance Coverage” Web. 14 Apr. 2014
Marquand, Barbara “The Difference Between Standard and Non-Standard Car Insurance Quotes” Web. 8 May. 2015 

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