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In the auto insurance industry, “standard” refers to one of several risk rating categories. Auto insurance companies evaluate insurance policies based on risk and generally classify drivers as non-standard (also known as “high risk”), standard, or preferred. Risk category affects the rate.
Understanding what standard auto insurance is and how it affects your premiums can help you make more informed decisions about your auto insurance coverage. There is. If you find yourself a high-risk driver, you may be able to improve your record and move into the standard category. Also, if you are a standard driver, you may be able to take steps to obtain the desired preferred driver status.
What is general car insurance?
Standard auto insurance refers to the rating categories that auto insurance companies use to determine how much risk a driver poses. Generally, the higher the perceived risk, the more the driver will pay for compensation. Most drivers fall into the standard category.
Standard car insurance does not refer to the amount of coverage or the type of insurance. There is no such thing as standard auto insurance coverage, as insurance is relatively customizable and available in a variety of combinations of coverage types, limits, and guarantees. However, standard rated insurance includes at least the minimum requirements required by the state, such as liability insurance.
How does standard car insurance work?
When you apply for auto insurance coverage, your auto insurance company will place you into one of the following risk categories based on several factors, including your driving history and claims history.
- Preferred car insurance Reserved for the lowest-risk drivers, typically those with a clean driving and insurance claims record, good credit (if allowed as a rating factor), solid payment history, and ongoing coverage. Applies to drivers with
- general car insurance It is offered to the majority of drivers who are low risk, but may have imperfect credit or violations on their driving record.
- Substandard car insurance Targeted at high-risk drivers. This includes drivers with poor credit scores, new drivers, and drivers who are unable to undergo a standard risk assessment due to lapsed coverage or serious traffic violations.
The following table summarizes some of the characteristics of drivers that may fall into each risk category. Note that in most states, except California, Hawaii, Massachusetts, and Michigan, credit history is a consideration in rating.
| preferable | standard | Nonstandard |
|---|---|---|
| probably have good credit | Good or average credit score | low credit rating |
| Car insurance continuation coverage | Advance continuation insurance | Expiration of coverage |
| No past accidents or traffic violations | Up to 2 minor violations | You may have had a serious conviction, such as drunk driving. |
| SR-22 may be required | ||
| new driver |
As the table shows, the difference between standard and non-standard car insurance is that standard drivers have a lower insurable risk. Being a lower risk usually means cheaper insurance than non-standard drivers, or higher risk drivers. When comparing standard and priority car insurance, drivers who fall into the priority category generally have the lowest risk of a claim and can receive even lower premiums than standard drivers.
Who needs standard car insurance?
Most states require you to have auto insurance in order to legally drive. However, please note that rating categories cannot be selected. Insurance companies assign categories based on evaluation factors such as driving history and insurance history.
Reasons why you cannot enroll in standard insurance
If you fall into one of the following categories, you may not be eligible for standard insurance and may need to purchase non-standard insurance instead.
- You are under 25 or over 75.
- We have a history of insurance claims.
- Multiple speeding tickets or other traffic violations on your driving record
- You were involved in a DUI and need to file an SR-22 with your insurance company.
- You have salvage rights to your car.
- Your license is from another country.
- There have been significant insurance policy lapses in the past.
If any of these apply to you, or if your insurance company deems you dangerous for other reasons, you may not be eligible for standard insurance. If you are offered non-standard insurance, or the company you get the quote from does not write non-standard insurance, you may be denied coverage.
Not all standard insurance companies offer non-standard insurance, but there are non-standard insurance companies available. Many standard and non-standard insurance companies offer similar coverage types. However, non-standard providers may have lower coverage limits and limited recommended options. If you shop around, you may be able to find the best price for non-standard car insurance.
How to get regular insurance
If you qualify, getting regular car insurance is a simple process. With a little research, you can find the right policy for your needs. Here are some steps you can take to find the right coverage.
- Browse around: Obtaining multiple quotes from different standard auto insurance companies is probably one of the best ways to get the lowest rates without sacrificing coverage. To find the lowest price, it’s a good idea to compare the same coverage type from multiple companies.
- Do your research: Researching different coverages, discounts, policy features, and third-party rankings from different companies may help you find a carrier that fits your needs.
- Compare discounts: Many companies offer discounts for things like good driving, safety practices, and company loyalty, among other things, and these savings opportunities can lower your premiums.
- Consider working with a local agent. While it’s easy and convenient to get quotes and buy insurance online, working with a licensed insurance agent in your area allows you to receive personalized service and make complex insurance decisions easier. You may be able to do so. Your local agent will be familiar with the specific needs of drivers in your state or city and may be able to direct you to appropriate coverages and carriers.
- Fill out the application form. When you apply for car insurance, you’ll need to fill out an application that asks questions to determine your risk level and eligibility. You will need to provide information about yourself, your car, and your driving history.
- Pay your insurance premium: Your first premium will probably be paid when you confirm your purchase of coverage. Setting up an online payment structure may give you discounts and make paying your insurance premiums more convenient. You may even save money by paying the full price. Most insurance companies allow you to print your insurance card or instantly download a digital copy to your phone.
How much is a standard insurance premium?
As of April 2024, the average annual cost of standard auto insurance is $2,314 for full coverage and $644 for minimum coverage. Rates can vary because there are many factors that determine how much you will personally pay for coverage. Your driving history, claims history, state of residence, and type of car you drive all affect your final auto insurance cost.
