Nonstandard auto insurance is a market classification, not a coverage type. Standard, preferred, and nonstandard are pricing tiers insurers use internally to segment risk — a driver doesn't choose this market, insurers place them there based on underwriting criteria. More than one in four drivers placed in the nonstandard market had no prior policy lapse before their first high-risk event. If you're looking for car insurance for high-risk drivers, understanding this classification is the first step toward finding affordable coverage.
The nonstandard voluntary market is not the same as the FAIR plan or assigned risk pool, which is the market of absolute last resort. FAIR plan rates are higher than voluntary nonstandard market rates, and coverage is more restricted across the board. Drivers should exhaust voluntary nonstandard options before turning to the state pool — and those who've had a policy canceled should read up on car insurance after a non-renewal to understand what to do next.
