What is the difference between standard and non-standard insurance?


The main difference is the level of risk associated with those who are covered under standard and non-standard insurance. Standard insurance are for those who present a standard risk, while non-standard insurance are for drivers who hold a number of traffic violations and even a DWI or DUI record.

Standard Auto Insurance Policies

There is basically very little difference in standard auto insurance policies offered by different insurance companies within a certain state. The state often regulates the kind of coverage provided by these companies. Standard auto insurance is charged with cheaper insurance rates, as compared to non-standard auto insurance policies.

Non-Standard Auto Insurance Policies

Insurance companies have more freedom designing non-standard auto insurance policies, and the premiums are usually set according to the level of risk the driver presents. Depending on the state where the policy is issued, non-standard auto insurance policies may or may not be regulated by the Insurance Commission.

People who are denied cover for standard insurance usually have to resort to getting cover from a non-standard auto-insurance program if he wants to continue driving. You see, in the case where you are charged for a serious traffic violation, the Department of Motor Vehicles will require you to show that you are insured before they will re-issue the driver's license. Thus, the high-risk driver will have to bear the higher cost of non-standard auto insurance.

Aside from those who have traffic violations or DUI records, non-standard auto insurance policies are sold for owners of race cars or for luxury cars, or categories of cars that present a high risk of theft and other types of losses. Also, someone who does not have insurance coverage sometimes need to get a non-standard coverage.

Converting a Non-Standard Policy into a Standard Policy

If you are able to meet the eligibility requirements of a standard policy (for instance, the DUI conviction has been duly served and lifted from your record), you can convert your non-standard policy into a standard one. And when you so, be sure that you drive carefully and steer clear of any traffic violations.

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