An automobile insurance policy provides protection against losses in the event of an accident or theft of your car. This is an agreement between you and the company. You pay a premium while the company, in turn, agrees to pay your losses as stipulated in your policy up to a certain specified limit. This provides property, medical and liability coverage in the event a claim is filed.
The coverage of the property pays for the damage or theft of your car and covers the medical payments for the treatment of injuries. Many extended coverage policies will also pay for rehabilitation and funeral expenses. The liability insurance covers you in case of an accident for which you are considered responsible. Almost all states require you to carry minimum amounts of liability insurance, but not all options, such as comprehensive.
Evaluating your risk
The basic benefit of having insurance is the financial peace of mind that comes from the policy. This benefit varies depending on the type of policy you buy. Many companies evaluate your level of risk before they reach a contract with you. They calculate the possibility of accidents occurring while driving, the number of hours they drive, etc.
This in the long term makes them group in a group of low risk or high risk, which in turn will determine their rates to a large extent. The main differences between these groups are simply the perceived risk. Those with low risk are said to be eligible for standard insurance, while those with higher risk are labeled as non-standard drivers and will pay more.
The standard coverage is designed for low risk insured
These policies have little or no difference between them, in terms of the price of the policy and the scope of its coverage. This policy has specific determining factors for coverage. For example, the car insurance policy only covers drivers with clean driving records that do not have traffic violations, accidents and insurance claims filed. A standard policy has more restrictions and is regulated by the state where they are issued.
Currently, most insurance companies consider that the drivers are high risk or not high risk. The number of drivers that have fallen in this category has increased in the last decade. Drivers who are placed in this category based on driving records, age, experience, credit history records, driving records, driving hours and other factors are rejected again and again by some companies insurance.
Fall into the non-standard category
In some cases, less coverage options are offered to non-standard drivers at very expensive rates. Drivers enter the non-standard category mainly because of their driving records. This includes people whose licenses have been revoked or suspended in recent years and those who have violated traffic excessively or been arrested and convicted of DUI or drunk driving (DWI). Older people, new drivers and teenagers are also considered non-standard drivers.
There is a wide range of coverage for non-standard drivers, so you can find a policy that suits your needs, whatever the situation. If you have been labeled as a high-risk or non-standard driver, it is probably due to your age, level of experience, driving history and other factors. Do not be discouraged, you still have many options for car insurance. Innumerable drivers in all categories find the insurance policy that best suits their needs with an easy pocket rate, coverage options and customer service that can not be exceeded.
From time to time these special insurers can offer a much more competitive price. Some large and well-known insurance companies own smaller non-standard companies and, through their agents, offer direct prices that will save you more.