Updated: May 20, 2024
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Drivers deemed too high-risk may be dropped by their insurance companies, with no other option for coverage. If you get into accidents or ticketed often, it may be time to ask your car insurance company about nonstandard auto insurance.
Most auto insurance companies offer both standard and nonstandard auto insurance. However, be ready for higher monthly premiums when purchasing nonstandard insurance as it is more expensive.
Nonstandard auto insurance is offered by most major auto insurance companies to drivers who are at high risk for DUIs, accidents and tickets.
These insurance packages are typically more expensive than standard car insurance packages, so those who want to apply may need to rethink their budget.
Some drivers can qualify for nonstandard auto insurance according to their insurance company’s standards, including drivers under 25 or over 75.
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Nonstandard auto insurance, sometimes called substandard auto insurance, is for drivers considered too high-risk to be covered by standard policies at standard rates. There is no difference in the processes or coverage for nonstandard insurance, but it's more expensive since there is a greater risk for claims.
Drivers considered nonstandard include those that have:
If you are considered an excessively hazardous driver, major insurers may cancel or not renew your coverage, and you will need to find an insurer offering nonstandard insurance. If you require an SR-22 or FR-44, your insurance company must file it for you before you renew your vehicle registration. If you are considering nonstandard insurance, be prepared to pay higher premiums.
Risk assessment is a crucial factor that determines not only eligibility for coverage but also the cost of premiums. Insurance providers categorize policyholders into different risk tiers, which are particularly relevant when it comes to nonstandard auto insurance.
Car insurance companies consider the following risk factors:
After assessing your profile and determining how much risk they’re taking on by insuring you, insurance providers decide your risk tier:
The coverage options are similar to standard policies but may have higher premiums or more restrictions. You can usually get the following coverages:
Optional coverages like roadside assistance or rental car coverage may not be offered or may come at a higher cost. Nonstandard policies may have higher deductibles, meaning you'll pay more out-of-pocket before insurance kicks in.
The Department of Motor Vehicles (DMV) generally does not impose different coverage requirements specifically for nonstandard insurance policies. The minimum liability coverage required by state law applies to both standard and nonstandard policies. However, some states may require high-risk drivers to file an SR-22 form, which proves you have the minimum required insurance coverage.
High-risk drivers may need nonstandard insurance. Due to their driving history, these drivers are not eligible for auto insurance under insurers' typical policies. This includes drivers who are young and inexperienced, who have been involved in several accidents, who file numerous claims and whose insurance has lapsed. If you fall into any of the groups below, you might require nonstandard auto insurance.
History of Multiple Accidents and Claims in a Short Amount of Time
Insurers view multiple incidents in a short timeframe as a tell-tale sign of high-risk driving. Because many payments need to be made by the insurance provider, several claims are likewise considered high-risk.
Reckless Driving
Speeding, failing to obey traffic signs and other law violations are all considered reckless driving. Auto insurance companies regard these as high-risk signifiers that can lead to accidents.
SR-22 or FR-44
You'll need nonstandard auto insurance if you require an SR-22 or FR-44. Your auto insurance provider must file one on your behalf before you can re-register your vehicle and qualify for a nonstandard auto insurance plan.
Salvage Title Car Owners
Salvage title cars are particularly high-risk because they have been deemed a total loss or are excessively damaged. These cars are generally unsafe to take on the road and need the appropriate insurance plan.
Luxury Car Owners
A luxury car's value and repair costs make it more expensive to insure. Because of the powerful engine, luxury drivers frequently speed, which makes them high-risk vehicles. However, comparing providers makes it possible to find cheap car insurance for luxury cars.
Lapse in Coverage
A gap in auto insurance payments is considered high-risk. The insurance provider may be exposed to more risk due to lapsed payments.
MoneyGeek found that the cheapest nonstandard auto insurance providers are:
As a leading auto insurance provider, USAA specializes in serving military families and shines in areas like financial stability, customer satisfaction and affordability. For those who don't meet USAA's eligibility criteria, Travelers offers a compelling alternative, featuring affordable premiums, robust financial stability, minimal customer complaints and a variety of valuable discounts.
The premiums below reflect the cost of insuring a driver with speeding, accident and DUI violations.
| USAA | Annual Premium$1,569 |
| Travelers | Annual Premium$1,951 |
| Allstate | Annual Premium$1,994 |
| State Farm | Annual Premium$2,023 |
| Nationwide | Annual Premium$2,103 |
| Farmers | Annual Premium$2,139 |
| Progressive | Annual Premium$2,184 |
| GEICO | Annual Premium$2,207 |
Buying nonstandard auto insurance involves a few extra steps compared to purchasing a standard policy.
Standard: Identify the types of coverage you need (liability, collision, comprehensive, etc.).
Nonstandard: In addition to identifying coverage types, consider any high-risk factors that make you eligible for nonstandard insurance, such as a poor driving record or a lapse in coverage.
Standard: Look for well-known providers with good customer reviews.
Nonstandard: Focus on companies that specialize in high-risk or nonstandard policies.
Standard: Online quotes are readily available.
Nonstandard: Online quotes may be limited; you might need to speak directly with agents who specialize in high-risk coverage.
Standard: Compare premiums, deductibles and coverage options.
Nonstandard: Pay special attention to any restrictions or limitations, as nonstandard policies often have more.
Standard: Many standard policies offer discounts for good driving, bundling, etc.
Nonstandard: Discounts may be limited or not offered at all.
Standard: Usually done online or over the phone.
Nonstandard: May require additional documentation, like proof of prior insurance lapses or SR-22 forms.
Standard: Pay the first month's premium to activate the policy.
Nonstandard: The initial payment may be higher due to the elevated risk.
Standard: Usually sent via email or available for download.
Nonstandard: May also be sent via email, but double-check for any additional forms or documents you may need to carry.
Standard: Policies often last six months to a year, with an option to renew.
Nonstandard: Keep an eye on your driving record; improving it could help you transition to a standard policy at renewal time.
Buying nonstandard auto insurance often involves more direct communication with agents and a closer look at policy restrictions. It's key to understand the terms and conditions fully, as these policies are tailored to drivers who are considered high-risk.
Always aim to improve your driving record so you can eventually transition to a standard policy with better rates and coverage options.
MoneyGeeks's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jul 26, 2024
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If you find yourself in a challenging position where even a nonstandard auto insurance company denies you coverage, don't lose hope. There are alternative routes to secure the car insurance you need to stay legally on the road.
Here are some options:
State-Run Insurance Programs
Some states offer insurance programs specifically designed for high-risk drivers who can't obtain coverage through traditional means. These are often referred to as "assigned risk" or "residual market" programs.
Joint Policies
If you live with someone who has a better driving record, you might be able to become a named driver on their policy. However, this could significantly increase their premiums.
Commercial Insurance Providers
Some commercial auto insurance providers offer personal car insurance policies for extremely high-risk drivers, albeit at a much higher cost.
Pay-Per-Mile or Usage-Based Insurance
Usage-based or pay-per-mile insurance policies can sometimes be an option. These policies base premiums on your driving behavior, monitored via a mobile app or a device installed in your car.
Keep in mind that driving without insurance is illegal in most states and can result in hefty fines, license suspension and even imprisonment.
If you find yourself unable to secure even nonstandard insurance, it's crucial to explore these alternative options. Always consult with insurance advisors and legal experts to ensure you're meeting your state's requirements for auto insurance.
Understanding nonstandard auto insurance is helpful for high-risk drivers. Learn more about what it is and who needs it below.
Nonstandard auto insurance is normally offered to drivers considered high-risk by their insurance providers. They fall under many different categories but can be called high-risk based on frequent DUIs, accidents, age or traffic tickets. Nonstandard auto insurance tends to be more expensive than standard car insurance.
Drivers who typically need nonstandard auto insurance include those who frequently get into accidents, have an SR-22 or FR-44 on file or have a salvage title car or a luxury car.
Nonstandard auto insurance is designed specifically for drivers who are considered high-risk due to factors like a poor driving record, lack of experience or gaps in insurance coverage.
While it offers many of the same types of coverage as standard insurance — such as liability, collision and comprehensive — it often comes with higher premiums and more restrictions.
The goal for many with nonstandard insurance is to improve their driving habits and record so they can eventually transition to a standard policy, which generally offers better rates and more coverage options for drivers with moderate risk.
Nonstandard auto insurance is more expensive because high-risk drivers are expected to get into more accidents than an average driver. For example, someone with several speeding tickets is more likely to cause an accident than someone with a perfect driving record. Thus, their insurance is more expensive.
About Mark Fitzpatrick
Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
