Nonstandard Auto Insurance Companies
Nonstandard auto insurance companies offer auto insurance coverage for hard to place insurance and for drivers who present more of a risk for the insurance company. For example, maybe you have had a few DUIs, well then nonstandard auto insurance companies are going to be your best bet for finding cheap insurance. In the majority of cases, it is the same standard coverage that all other companies offer except that it is at a higher price. When an auto insurance company considers you a higher risk due to your age or driving record, they will then charge you nonstandard rates.
Click here to read more about auto insurance for bad drivers
Nonstandard insurance coverage can also refer to drivers who need insurance for different kinds of situations like needing a non owners policy or carrying an SR22. Most of your national big-name carriers do not sell this type of insurance but this has been changing lately. Recently State Farm purchased Gainsco and Allstate purchased National General. Both of these acquisitions are non standard company purchases. Most Independent nonstandard auto insurance brokers sell insurance through these nonstandard carriers. Not many of these companies sell direct to consumer they prefer the middleman route of appointing agents to sell for them.
Many drivers on the road are considered under the non standard sector of the industry. This is one of the fastest growing segments in the auto insurance industry and many big players are starting to enter this segment of the industry. The last decade has brought about a great rise of non standard drivers on the road.
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How does nonstandard car insurance work?
Nonstandard car insurance refers to drivers who are placed in a high risk sector and is placed in the most expensive priced tier. This is a sector for drivers who are too risky to receive an insurance company’s standard rates. Most auto insurance companies set their prices in three different segments which are Preferred, Standard, and Nonstandard auto insurance.
Preferred Insurance Tier- This is a tier that is the most rewarded when it comes to auto insurance prices. This group usually has great credit and insurance history and have bundled their homeowners' insurance with the same carrier as their auto insurance. They also usually have a good driving record.
Standard Insurance Tier- The standard insurance tier is in the middle of the road. You can still have very affordable rates but not as good as the preferred tier. This group usually has average credit and a shorter term of insurance history.
Nonstandard Insurance Tier- This group usually has a bad driving record and little or no insurance history. If you have been denied coverage from an insurance company or been cancelled by one this can place you in this category. They pay the most for auto insurance coverage and some carriers will not offer coverage to them at all. Having accidents or DUIs are two things that would immediately put you in the nonstandard tier.
These different categories car insurance help insurance companies correctly calculate their risk exposure and remain profitable. If you have had DUIs or accidents in the last three years insurance companies find you as a higher risk for them to pay out a claim on your policy. This situation will put you in the high risk or nonstandard category and this will cost you a great deal more on your car insurance premiums. If an auto insurance carrier feels you are too much of a risk to insure they can cancel your policy and place you in the non standard market until your driving record clears up. Being a young driver or having bad credit can also put you in the non standard auto insurance sector. We recommend young drivers under 25 to try to go on a parent or legal guardian’s policy. Nonstandard auto insurance is purchased as any normal auto insurance policy would be. The main difference you will see is in the premiums, the price will be much higher but the policy itself is of normal format. The one difference you could see is that you may only be able to purchase state minimum limits of liability just because most nonstandard auto insurance companies only offer state limits. Most preferred national carriers are the place to go to for higher liability limits like a Progressive or State Farm.
The one caveat to this would be if you need an SR22 which is required by some states once your license is suspended. This occurs most often after a DUI or other severe driving violations. An SR22 is an endorsement done to an auto insurance policy and is filed and send to the state proving that you are carrying insurance. This usually doesn’t cost more on the monthly premium but does cost the first month payment to be higher due to required paperwork that needs to be filed on behalf of the customer.
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Most larger preferred companies will not offer this coverage, it is most commonly sold by nonstandard auto insurance agencies.
Here are several of the larger non standard agencies:
- La Familia
- Cheapest Auto Insurance
- Best Insurance
Click here to learn more about auto insurance brokers
See below information to read through our auto insurance guides for Oklahoma and Texas
How much does nonstandard car insurance cost?
The cost of nonstandard car insurance depends on many different factors and the state you reside in. There is no way to give you an exact cost unless all the customer information is given. Beware of any websites you see giving out general rates without taking in your information. In most all cases it will be grossly inaccurate. The quickest accurate car insurance quote we found on the market is with Save Money Car Insurance https://www.savemoneycarinsurance.com/ so, any information less than what is asked on this site will more than likely not be accurate.
In most states age is the biggest factor in your auto insurance rates right in front of driving record. Younger drivers are a much bigger risk for the insurance carriers and they definitely charge for it. We have found that it is much cheaper for nonstandard drivers to purchase liability only auto insurance. Since high risk drivers pay a lot more for car insurance than safe drivers it is important to get the proper coverage you need, not too much but not too little either.
Click here to learn more about liability car insurance for bad drivers
High risk drivers who purchase full coverage insurance pay the highest premiums.
Because of the risk insurance companies take on high risk drivers and full coverage the monthly premiums can be very high.
Click here to read more about full coverage insurance for bad drivers
Best nonstandard auto insurance companies for high risk drivers
There are a large number of choices to choose from when it comes down to nonstandard auto insurance companies. These companies appoint agencies to write business for them in most situations. There are a few direct writer nonstandard auto insurance companies and here are a few we found:
- Safe Auto
- The General
- Save Money Car Insurance
As far as normal nonstandard auto insurance companies that work directly with nonstandard auto insurance agencies, here are some of the top companies we found:
Click here to read more about auto insurance companies
It is important to remember that if you use a nonstandard company that works only through independent agencies that you are using a middleman. Which this can provide affordable rates it can present problems on customer service and claims side.
Specifically, for DUIs we have found the top companies that provide cheap auto insurance and here are a few of them:
- The General
- Safe Auto
Click here to read more about DUI auto insurance
Check out our below resources to learn more about auto insurance coverages for nonstandard drivers:
Reasons you would be in the nonstandard car insurance tier
Nonstandard auto insurance can be a broad term and there are many reasons why you would be placed in this segment. Here are a few of the top reasons that you could be placed in a nonstandard insurance plan:
- If you have multiple tickets on your driving record
- If you have had several claims turned in to your insurance carrier over the past 3 years
- If you are required to carry an SR22
If your license is currently suspended
Click here to read more about suspended license insurance
If you have no insurance history
- If you are in need of non-owners insurance
Now that you know what can put you in the nonstandard insurance tier it is also important to know what can get you out of the nonstandard tier. So, we have some tips below on just how to do that:
- Keep a clean driving record for three years
- Be claims free for three straight years
- Keep your auto insurance continuous for six straight months
- Shop around at your renewal time
- Improve your credit score
These are just a few of the tips we found for you that we hope can help get you to more of a preferred tier of car insurance which should ultimately help save you money.
Who sells nonstandard car insurance?
- Most of your smaller auto insurance companies are the nonstandard auto insurance specialists. This is a niche program for a lot of these smaller carriers. But as you can see below there are some big players starting to enter the market now. Here are a few more companies that we found that sells nonstandard auto insurance:
Acceptance Auto Insurance
- Alliance United
- Bristol West
If you are looking for online quote comparison sites that sell nonstandard auto insurance click the below link to see your options:
Click here to read more about online car insurance quote comparison sites
Some preferred auto insurance companies you will find does offer nonstandard auto insurance but just in a different tier with different rates altogether. Geico is a good example because they are notoriously a preferred carrier but they have a special tier they put nonstandard customers into. And other larger companies own other subsidiaries to sell nonstandard insurance through like State Farm and Nationwide. State Farm writes their nonstandard customers through their newly purchased company called Gainsco and Nationwide writes theirs under Titan. One of the best ways to save on nonstandard auto insurance is to get as many quotes as possible. The more quotes you get the better your chances are of saving money.
click here to read more about the top insurance companies
If you cannot find auto insurance or keep getting denied coverage you are able to contact your state’s assigned risk pool which provides auto insurance coverage for high risk drivers who are not able to receive coverage elsewhere. This is usually used as a last resort only and not a first line of defense for finding car insurance. Most of these plans are usually more expensive than regular auto insurance so it is not
How to get the nonstandard auto insurance you deserve
If you are in this nonstandard segment of auto insurance you still have many choices of insurance companies and coverages to choose from. Here at Cheapest Auto Insurance, we have numerous of carriers that offer nonstandard auto insurance policies at an affordable rate. Just because you are a bad driver doesn’t mean you have to over pay for car insurance. High risk drivers are charged more money than the average driver but this does not have to be a permanent thing. As your driving record improves so should your car insurance prices. With our flexible pay plans and low first month payment we can help nonstandard customers get the insurance they need. Feel free to contact one of our agents for a quote today!
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