Before settling on the amount of premiums an insurance company would demand on an insurance applicant, the company first takes a comprehensive look at his or her:
- Type of vehicle
- Driving routes / mileage
- Driving history
If you are a middle-aged driver who drives a low-maintenance car, having a steady income and a good clean driving record, then you would be offered the Standard Auto Insurance by insurance companies. This type of insurance is the most-preferred since it contains all the services and aid one might need in the long run, without it being too pricey.
However, although cheap and affordable car insurance is pleasing to the ears and wallets of most people, unfortunately, not everyone is qualified for it. Instead, they are given Non-standard Auto Insurance, which costs much more. The most common people who are offered it are those:
- Below 20 years old
- 70 years old and above
- With DWIs and DUIs
- With multiple driving violations
- Who Drive high performance cars
- Involved in previous accidents
People belonging to these categories are seen as “high-risk drivers” – meaning, they are seen as those most probable to be involved in accidents, violations, and might not be able to pay. High-risk drivers are given much higher premiums to pay; on the other hand, they get more coverage because of their high-risk status. The long-term solution for this is age-old: drive carefully, strive to keep your driving record clean and prove that you are a safe driver.
For first time, teenage drivers, however, this is only a temporary situation. As they grow older, their risk points decrease, and if they maintain clean driving records, the premiums they pay will decrease as they age. Students with good grades also get discounts.
If you’ve had a rather shady history, one way to decrease you high-risk status is to retake refresher driving courses or lessons. Being a driver with a not-so-good record could also give you difficulty applying for policies. If this is your situation, the key is to shop around for policies. One company might require you to pay expensively, while another might give you the same policy at a much cheaper price.
Also, keep in mind that there are numerous ways to avail of discounts from insurance companies. Search for these also, or get advice from experts. So as we may see, being in the “Non-standard” category is not an excuse to complain of the high premiums or to not get car insurance at all. There are still many factors you can control.