What Is Non-Standard Car Insurance?

WV & OH ONLY

"My agent said I'd have to go with a non-standard car insurance company. What does non-standard mean, and is it bad insurance?"

If someone used that label on you, I know it doesn't feel great.

Non-standard car insurance is coverage for drivers that many companies consider high risk or won't take at all, often because of tickets, accidents, a lapse in coverage or little insurance history. It's real insurance and it meets the law when it has the required limits. For a lot of people it's a place to be for a while, until their record gives them better choices.

Everybody should be able to get cheap coverage with one easy call. Until that day, we'll fight for the best rate you can get right now.

Whether you count as "non-standard" depends on who's looking. One company can turn you down while another is glad to write you, so it's worth finding out where you actually land. We check 13 companies, standard and non-standard, side by side.

You've probably figured out I want you to call. You're right. Being told no by one company doesn't mean you've got no choices. I'd like to show you what they are.

WV & OH ONLY

The Ohio Department of Insurance's guide says you could be considered high risk for a poor driving record or for being uninsured more than 30 days. It adds that poor credit information, being an inexperienced driver and some occupations can make insurance harder to find.

From my desk, I'd add people who need a filing with the state in Ohio, people who've had a policy canceled for not paying, and people who just haven't had insurance in their own name yet. Every company draws the line somewhere different.

Not in the way people fear. It's still a policy from a licensed company, with liability limits and optional coverages. What tends to be different is who the company is built to serve.

The same Ohio guide says many companies have a program for high-risk drivers, and numerous companies specialize in selling insurance to people other companies won't. High-risk drivers will pay more. There's no way around saying that.

It can be narrower, so read it. Companies in this market differ a lot in what they offer, and a low price sometimes means something is left out. Before you buy, I'd ask:

• Are the liability limits high enough for what you have to lose?
• Who's actually covered to drive, and is anyone excluded?
• Is there any coverage on your own car, and what's the deductible?
• What happens if you're a day late with a payment?

I'll go through those with you. That's the part of this job that matters.

No. The assigned risk plan is what's left when the regular market says no. Each state has one, and you get placed with a company.

West Virginia's insurance commissioner calls it a last resort, because the premium is generally substantially higher than in the voluntary market. The Ohio guide says that state's plan guarantees you can buy liability coverage, at rates that could be higher than even the high-risk companies.

So non-standard is usually what you try first. The plan is what you try when that doesn't work.

It depends on what put you there and on the company. The Ohio guide says many companies don't consider incidents more than three years old, while some will look back as far as five.

The part you control is what happens from today on. Keep the policy paid. Don't let it lapse. Avoid new tickets. Time has a way of working in your favor if you give it a clean run.

Shop before you assume anything. The Ohio guide suggests comparison shopping as your record improves and asking your company how long it takes to clean up your record. It's good advice in West Virginia too.

Don't wait for someone to tell you you've moved up. Your company has no reason to call and say another company would be cheaper. I'd check at each renewal once something on your record ages off. I wrote a list of what I'd never skip on my own policy if you're deciding what to keep.

Having one, no. Being insured the whole time generally works in your favor when you shop later. West Virginia's commissioner says auto insurers generally treat a break in continuous coverage as a negative sign, so a policy that's in force is doing you some good even if it isn't your dream policy.

Told you're "high risk"? Let's see what that really means at each company.

WV & OH ONLY

Next in the series: Part 36, Dropped or Turned Down? Coverage Today