Standard vs. Nonstandard Car Insurance: What You Need To Know

Most people will never need nonstandard auto insurance, but it is an option for drivers who are deemed high-risk or who have been denied standard car insurance. To be designated high-risk, drivers have usually racked up serious infractions like multiple speeding tickets, at-fault accidents or a DUI. Getting caught driving without insurance or being denied insurance because of a poor credit history (in most states) could also force drivers to seek out nonstandard car insurance. Bankrate’s insurance editorial team outlines standard vs. nonstandard insurance and the potential differences in cost and coverage options.

What type of drivers might need nonstandard auto insurance?

Nonstandard insurance was created for high-risk drivers unable to obtain a standard car insurance policy. But who is considered high risk? Auto insurers typically qualify the following drivers as nonstandard or high risk:

• New drivers: Young drivers and inexperienced drivers are often considered riskier to insure because they have a greater likelihood of being involved in accidents.
• Foreign drivers: A visitor or temporary resident may not be eligible for standard auto insurance because they have no driving history in the United States.
• Drivers with a coverage lapse: Failing to maintain continuous auto insurance makes drivers riskier to insure. Even a single day without coverage could put you in this risk category.
• Drivers with a recent history of violations or at-fault accidents: Speeding tickets, car accidents or a DUI conviction could flag a driver as nonstandard. The severity and frequency of the incidents, plus the insurance company’s comfort with these types of risk, can affect whether drivers with incidents on their record are eligible for standard car insurance.
• Drivers required to carry an SR-22: Drivers who have had their license suspended or revoked may have to file an SR-22 certificate as proof they are carrying the required minimum amount of auto insurance coverage needed in their state.

The scenarios above could all potentially cause an auto insurer to refuse to offer standard auto insurance coverage—or to offer standard coverage at a much higher rate.

How is nonstandard car insurance different from standard insurance?

The biggest differences between standard vs. nonstandard auto insurance are cost and choice. Nonstandard car insurance includes the same types of coverage as standard auto insurance, but it is typically more expensive and not all insurance companies offer it. In some cases, you may have different coverage limits for nonstandard insurance based on your risk profile.

When it comes to shopping and purchasing car insurance, the process for nonstandard policies looks very similar to the standard process. You’ll still want to shop around and compare car insurance rates from various providers — including top-rated national carriers who offer both standard and nonstandard policies. If you need an SR-22 certificate, you will need to ask the carrier you choose to file that paperwork with the state on your behalf.

How much does nonstandard car insurance cost? 

Nonstandard auto insurance costs more, on average, than standard car insurance, but the exact price will still depend on the rating factors in each individual driver’s profile. Insurance carriers use multiple factors to determine how much you pay for car insurance.

For example, insurance companies look at your driving record and credit history (in most states) to determine your risk of filing claims. Depending on your location, they may also factor in your ZIP code, your age, your gender and your marital status when determining whether your level of risk fits with their standard coverage offerings.

As far as the carrier you choose, the same level of coverage could cost more or less. Some nonstandard auto insurance companies specialize in high-risk car insurance, which may help you save on premiums. Insurers also rate incidents differently, such as at-fault accidents and speeding tickets, using proprietary algorithms to calculate premiums. The table below shows average full coverage premiums for drivers who may qualify for nonstandard coverage. Note that these rates may be based on quotes from standard insurance carriers as well as nonstandard carriers.

Frequently asked questions

• How do I know if I need nonstandard auto insurance?
  

  You likely need nonstandard auto insurance if you’ve been denied coverage or quoted extremely high rates from standard auto insurers. If you’re not sure whether you need this type of coverage, you may want to speak with an insurance agent or broker who can explain the risk factors in your profile and help you identify potential insurers willing to work with you.

• What companies offer nonstandard insurance?
  

  Many of the best car insurance companies, like Geico and Progressive, offer nonstandard car insurance. Although these are national insurers, several smaller or regional providers, like Safe Auto and Bristol West, also write nonstandard insurance. In some cases, these providers might offer more competitive rates, so you may want to request quotes in order to find the most affordable policy for you.

• If I received a letter of nonrenewal from my car insurance company, how can I get new coverage?
  

  A car insurance company may cancel your coverage or choose to nonrenew it. If this is the case, you will need to find car insurance elsewhere. Finding a nonstandard insurance company may be your best option if you were nonrenewed because of an incident such as a DUI conviction. Nonstandard carriers may be more willing to work with you and may provide an SR-22 certificate (if required) proving you are legally insured.

• Where can I find affordable rates for nonstandard car insurance?
  

  While being considered a high-risk driver can narrow your options, there are still likely to be several providers that will offer you coverage. Nonstandard car insurance is generally more expensive than standard insurance, but some companies specialize in high-risk drivers and offer more competitive rates than others. When looking for affordable rates, experts recommend shopping around between several companies to see which will offer you the best deal on the car insurance you need.

• How long will I be considered high-risk by car insurance companies?
  

  The length of time you’re considered a high-risk driver depends on the insurance company. In most cases, insurers look at your driving history from the past three to five years and will want to see a history of continuous insurance coverage for at least six months before issuing a standard policy. Be prepared to pay more for insurance for at least a few years. This variability also highlights the importance of shopping around for car insurance since you might find a provider that only deems you high risk for three years rather than five. In the meantime, you may be able to alleviate some of the financial burden by requesting multiple quotes and comparing car insurance rates to find the best deal for your situation.