What is Non-Standard Auto Insurance,
and why do I need it?
Non-standard auto insurance is for drivers whose risk factors make it difficult or impossible to insure with standard rates. The following are some reasons you may need to insure with non-standard auto insurance:
- Salvage Title: A salvage title denotes that your vehicle has been damaged and/or deemed a total loss by an insurance company, making it very difficult to insure again.
- High-risk Driver: A high-risk driver is someone with multiple accidents, moving violations, insurance claims or any combination of the above.
- SR-22: A SR-22 is a guarantee from an insurance company provided to the state to prove motorist is insured. A SR-22 is usually required of drivers with a DUI, driving without insurance or a reckless driving conviction on their record.
- Non-owner Car Insurance: Non-owner car insurance is often used by high-risk drivers who are required to buy a liability policy to keep a driver’s license. However, it is also used by drivers who don’t own cars and rent frequently or are trying to keep continuous coverage.
Beyond legal requirements, carrying personal auto insurance is a smart decision. If you cause an accident or get into one with an uninsured or underinsured driver, you may be held responsible to cover related expenses, such as car repairs, property damage, medical bills, lost wages, legal fees and more. Without the proper coverage, your financial well-being may be at risk.
According to the Insurance Information Institute (III), private passengers spent over $163 million dollars in 2016, both in liability and physical damages. The average claim costs for both bodily injury and physical damage was between $1,000 and $3,000 in 2016, with an estimated 2-3 claims per person that year. These statistics climb every year, as do insurance rates to compensate, however in most every case it is less expensive to insure your car than to pay out of pocket for damages caused. This is an important aspect to discuss with an expert in personal auto, they will help you to determine the value of your vehicle and help compare and rate all your coverage options.
What does Non-Standard Auto Insurance Cost?
Personal auto insurance offers so many options and coverages, not to mention the growing amount of carriers offering discounts for various reasons, such as being a safe driver, owning a hybrid car and multi-car/policy discounts. Pricing an auto policy must be done with great attention to detail. There are some standard factors used in determining rates, such as year and model of your vehicle(s), your driving record and condition of your vehicle(s). When rating non-standard policies, more or less factors could be considered. For example, a non-owner policy is typically less expensive than a standard policy and while driving records will affect premiums, you don't have to worry about vehicle factors such as age or condition.
What are Common Non-Standard Auto Claims?
If you are looking for how to file a claim, please visit our Client Services.
Personal auto claims are made as a result of many types of events regarding your vehicle. Most common are the following nine claims.
- Rear end crash. Statistics collected by the Centers for Disease Control and Prevention (CDC), demonstrate that distracted driving is the number one cause of rear end crashes. Eight people are killed and 1,161 people are injured every single day in the United States.
- Windshield damage. Most chips and cracks come from rocks thrown up by large trucks, snow removal equipment and other debris from the road.
- Damage to parked vehicle. Apparently 15 percent of drivers have hit a parked car. A third-party data company, Go Compare, researched that close to two million drivers admitted to not only hitting a parked car, but driving away without leaving a note or attempting to find owner.
- Backup accident. According to the National Highway Safety Traffic Administration (NHTSA), there are approximately 500,000 backup accidents each year, 15,000 of those accidents lead to injury and 210 lead to death.
- Single car crash. Single car crashes account for over 8,000 deaths per year, according to the CDC.
- Hail damage. The State of Colorado reported a hail storm in 2016 as the most damaging in the state’s history, with almost $1 billion in damages.
- Break-ins and theft. NHTSA reports there are over 10,000 break-ins per year, per state.
- Personal injury. Back and neck injuries are very common results to having an accident.
- Crash at intersection. While the Department of Transportation (DOT) works hard to make intersections as safe as possible, an average of one-quarter of traffic fatalities and roughly half of all traffic injuries are attributed to intersections.
How Can I Reduce My Risk?
Reducing the risk of an accident is part driver, part vehicle and part everyone elses’ responsibility. While you can’t control what another driver does, you can influence them. Driving aggressively, using your horn too liberally and distracted driving are known to antagonize other drivers, often influencing them to drive poorly as well. Taking measures such as getting quality driving instruction, maintaining your vehicle and keeping it safe to drive as well as driving defensively, will not only help keep you and your passengers safe, but will likely reduce your auto insurance premiums.
Frequently Asked Questions
- Who does my insurance policy cover?
Most policies will cover you, your passengers and the driver and passengers of a vehicle with which you had an accident. Note that most policies include and most states require, liability coverage, without which only you and your passengers will be covered in the event of an accident.
- What if my vehicle is a motorcycle, RV or any other type of road worthy vehicle?
If you can drive it, there is a way to insure it. Motorcycle and RV insurance is much like normal auto insurance, just with extra or removed options as applies to each vehicle. For example, recreational vehicles often carry extra fuel or propane on board for stoves and alike, increasing the chances of fire and the need for extra coverage.