Reader’s Question:
What does a non-standard insurance policy mean? I live in New York.
Mitch
Bronx, NY
Non-standard auto insurance is a term used to identify insurance that cannot be sold at standard or favored rates. Often, it offers coverage similar to that of standard insurance; however, the rates of a standard insurance are lower. Normally, this type of auto insurance is sold to a driver whose underwriting history make him a high-risk driver.
Auto insurance companies across the US, not only in New York, have different criteria for identifying a high-risk driver. Some companies classify high-risk drivers as those who have made some serious driving violations which have caused severe damages and financial implications to themselves, to others, or to the auto insurance company. If these drivers have just recently caused serious accidents, if their driving records are worse than the average, or if they have made a number of claims due to the violations or accidents they have caused, they are likely to be given non-standard auto insurance policies. Drivers who own highly specialized sports vehicles or custom-built ones may also be offered non-standard auto insurance because of the high cost implication they may cause if in case they get into an accident. Likewise, the same insurance will be offered to those drivers who either lack enough experience in driving and or to those who have lapses in auto insurance coverage.
Tags: auto insurance coverage, auto insurance policy, car insurance rate, high risk insurance