Who should apply for non-standard auto insurance?

Auto insurance is mandatory almost everywhere in the US. However, it can be difficult to get an insurance policy if you have a poor driving record or fall under the category of high-risk drivers. And, driving without insurance can easily put you in tough situations. Here is where non-standard auto insurance comes into play. 

What is non-standard auto insurance?

Non-standard auto insurance is coverage designed specifically for high-risk drivers. Usually, it has relatively higher insurance premiums than standard insurance. However, not every affordable auto insurance company in Texas offers a non-standard auto insurance policy. 

Different auto insurance companies consider drivers non-standard for various reasons, such as driving record, vehicle type, etc. So, who falls under non-standard? Who needs non-standard car insurance? In this guide, we will discuss the same.

Who needs non-standard auto insurance?

1. New Drivers:

When someone begins to drive, they don’t have enough experience to drive like a seasoned driver. As a result, new drivers are often prone to accidents and are often considered non-standard policyholders. While in the beginning, new drivers have to pay higher costs for coverage, especially in the beginning, they can reduce the premium cost over time.

2. High-risk drivers:

Experienced drivers are often aware of road risks and drive safely. However, some drivers regularly make mistakes, leading to accidents and poor driving records. Frequent accidents, violations of traffic rules will impact your driving record & most auto insurers have access to their policyholder’s driving records. So, your insurer may consider you as a high-risk driver & you might have to pay higher premiums for your auto insurance policy.

3. SR-22 Insurance:

You may need to obtain an SR-22 certificate for a variety of driving infractions, such as DUI/DWI charges, frequent accidents, multiple tickets, etc. While SR-22 is not an insurance policy, it is a certificate that affects your auto insurance and classifies you as a high-risk driver. So, if your state requires you to carry the SR-22 certificate, your insurance company will likely charge more than the standard insurance premiums.

4. Foreign driver’s license:

If you have visited or are a resident of another country, you may not be eligible for standard auto insurance even if you have a US license. Apart from this, if you have a vehicle that is not in a good condition, it will be difficult for an insurer to offer you standard auto insurance.  

5. Lapse in coverage:

If you have pending dues or your policy has been canceled due to nonpayment, insurance premiums, you may be considered a high-risk driver, and your auto insurance company may not pay you an auto insurance policy.

The Bottom Line

While these are situations when drivers are considered as high-risk drivers and require you to apply for non-standard auto insurance, there are many more, such as residing in an area with a higher theft rate, poor credit history, filing several claims within a short period, being convicted for drink and driving, etc. However, before you go ahead, make sure you check all your non-standard auto insurance policy terms and conditions.

All the Best!