Definition of Non-standard

[Siqarth]

Hi all,

My name is David and I'm doing bit of research around auto insurance market. As a industry experts I would love your input and help on one particular subject: definition of non-standard driver.
My understanding is that rules are different for each state/carrier. Is this correct statement? I'm also trying to classify these scenarios:
* driver is requesting a state minimum coverage. never had any accidents, violations, DUI etc. How would you classify him? Non-standard because of requested coverage?
* driver requesting high coverage 100/300 but with lets say 3 traffic violations. Same question

Many thanks in advance for all answers!!!

 

[khang.mis]

Nonstandard basically means anyone who is not very responsible
-DUI
-high risk
-consistently paying late
-only concerned about price rather than coverage

It's easier to differentiate a preferred customer from a nonstandard customer. It would be just that list but opposite

 

[AgentProvocateur]

A non-standard driver is a higher-risk driver not qualifying for standard auto insurance rates. Not qualifying for one company's standard auto insurance rates does not mean the driver does not qualify for any company's standard auto insurance rates.

You are correct about each auto insurance company having its own criteria, sometimes varying in different states to comply with state law, but it's to qualify an applicant for standard or preferred rates, not to define a nonstandard driver.

With one company in a particular state, you may not qualify if you have one speeding ticket, or 1 non-weather related comprehensive claim, but you may qualify for standard auto insurance rates with many other companies.

There may be some companies in some states disqualifying applicants wanting minimum limits, or having a single vehicle without comprehensive and collision, but there are also companies willing to insure them at standard rates.

Any major violation, like a DUI or reckless driving ticket, or a license suspension in the last 3 or 5 years (depending on state law) pretty much guarantees the driver will qualify only for nonstandard auto insurance. Multiple tickets or accidents usually does the same. A lapse or no prior insurance, if allowed by state law, usually makes a driver a nonstandard risk.

 

[khang.mis]

That is a well written response

 

[Siqarth]

Great answers! Many thanks for your input. I was not aware that some carriers are willing to provide standard rates for users requesting minimum coverage. If you could name perhaps 1-2 of those carriers you would make me life a bit easier!
Thanks again.

 

[AgentProvocateur]

Great answers! Many thanks for your input. I was not aware that some carriers are willing to provide standard rates for users requesting minimum coverage. If you could name perhaps 1-2 of those carriers you would make me life a bit easier!
Thanks again.

No, I can't speak for any specific company's underwriting standards in every state, and since I suspect you are writing an article to publish on the Web, I don't want you to mislead the public about 1-2 companies allowing something other companies may or may not allow. There is enough inaccurate information on the net as it is now.

People seeking only the minimum coverage often qualify for non-standard auto insurance for other reasons. Anyone qualifying for standard rates should choose (or at least consider) higher limits than the state minimum. Even for people under age 30, the cost difference is not that much, and many companies use higher liability limits as a rating factor, to qualify for a lower rate.

If you want to know about specific companies, I suggest you call the 5 largest auto insurers in the USA, and ask them about it.

 

[Siqarth]

Many thanks again for your answers. I can assure you that I'm not writing an article. Just doing bit of research for a specific project.

I have a better understanding of non-standard users now.
Thank you.

 

[Siqarth]

I think I have one last question. I'm trying to establish what's the breakdown between standard and non-standard users out there. I don't believe this is as simple as 50/50 split.
Many thanks for all answers given.