When people talk about a typical policy they refer to standard auto insurance coverage that is offered to average drivers, who have sufficient driving experience and acceptable record. Such policies follow the common industry practices in the way they insure vehicles and drivers and stay within the usual limitations and restrictions. Most applicants can get standard car insurance rates, with or without discounts.
What influences how much you pay for insuring your vehicle isn’t usually the rates applicable to you but how much discounts you can get.
For example, a driver with clean driving record for at least three years and a driver with a recent claim get charged the same standard rates. However, the former gets large discounts for being a good driver. Discounts can differentiate premiums as much as 50%. Essentially, you need to qualify for discounts if you want cheap auto insurance.
Automobile insurance premium calculations are based on risks associated with insuring particular drivers driving the insured car at and around the given address. Therefore you may be a typical driver but cannot qualify for standard insurance rates due to owning a high risk car or living in a high crime and accident zone.
Sometimes, being different like having a foreign driver license, owning an antique automobile or living with a teenage roommate can prevent you from getting a standard cover. When this happens you may need to look for high risk auto insurance companies to get insured.
Standard Car Insurance Coverage
Probably the best way of describing standard auto insurance coverage is that it is a typical policy without onerous limitations, restrictions and conditions. Some insurers can deliberately break away from generally accepted and understood industry practices by imposing special conditions in return for offering cheaper policies or to reduce the risks they face. Most companies sell policies that follow industry standards.
Usually a standard auto insurance policy offers much larger coverage than state minimum car insurance. Large numbers of traditional insurers prefer not to offer basic coverage because they don’t want the type of drivers who are looking to buy vehicle insurance just to comply with state laws. That is why most standard policies come with higher levels of liability coverage like this.
$50,000 per person for bodily injury
$100,000 per accident for bodily injury
$50,000 per accident for property damage
Better ones offer even more as below.
$100,000 per person for bodily injury
$300,000 per accident for bodily injury
$50,000 per accident for property damage
You should increase it even further (see below) if you can afford it.
$250,000 per person for bodily injury
$500,000 per accident for bodily injury
$100,000 per accident for property damage
Naturally, policies with better liability coverage is likely to cost more but most companies, agents and experts believe that most state minimum requirements aren’t sufficient and you need decent level of liability coverage. Otherwise, you run the risk of losing your house or other possessions in case you cause accidents that exceed your liability limits. A young student can perhaps take such risks due to lack of money and worldly possessions. However, it makes sense to increase your liability coverage as you and your possessions grow.
A standard car insurance policy can include several different types of coverage. You can just buy a standard liability car insurance policy. Anything else you add on is optional even though large numbers of policyholders choose to buy standard full coverage vehicle insurance that includes Collision and Comprehensive Coverage as well. Most coverage questions like what does car insurance cover is answered in that post, if you want to find out more.
A Standard Auto Insurance Policy can provide different coverage options and chance to buy as much protection as you like. Every vehicle owner must buy at least a liability policy but most drivers choose to purchase standard full coverage car insurance policies.
In addition, standard vehicle insurance coverage refers to the way a typical policy insures you and your automobile. For example, a typical liability policy provides coverage if the policyholder drives someone else’s automobile. If its owner already insures the vehicle your own coverage comes secondary to the owners policy.
Also, it covers occasional drivers who drive your car with your permission. There are some non standard auto insurance policies that limit who drives the insured vehicle. Sometimes, even traditional insurers may restrict occasional drivers to people over the age of 21 or 25 to avoid teenage drivers, especially when they insure a high performance automobile. However, some nonstandard insurers can provide named driver insurance that only insures the drivers who are named on the policy.
So, typical policies provide industry standard coverage and nonstandard policies can have restrictions and special conditions. Usually, typical drivers don’t look for nonstandard policies. You may be forced to buy a nonstandard policy if you are struggling to find affordable coverage through mainstream insurers.
Typical Drivers with Standard Car Insurance Rates
Insurers normally set three different rates for different types of drivers. These are preferred risk rates for the best drivers, standard rates for average drivers and nonstandard rates for motorists with various problems that separate them apart from the rest due to higher or different risk profiles.
As a general rule, most drivers over the age of 25 with several years of driving experience and insurance history can get standard policies even if they have one or two small claims or traffic tickets.
As it is probably already clear, qualifying for standard auto insurance rates doesn’t really say much in terms of premium costs, even though failing to qualify for typical rates can mean paying higher premiums. The answer is in the details if you want to know how much is car insurance for you? A lot depends on your personal details like credit history, home ownership and zip code along with your driving and insurance records. For example, you may be charged a bit more than the standard rates if you have a bad credit score or a recent lapse in car insurance.
On the other hand, most insurers offer substantial discounts on standard rates to good drivers with good credit scores. The logic of vehicle insurance premium calculations is to reward drivers who are careful and discourage risk taking and making claims.
The term standard automobile insurance must be taken loosely as even standard policies can vary depending on the company and state. Another point to consider is the interpretation and application of these terms. The bottom line is that you should look for top auto insurance companies who are known for being good at paying claims.