Standard vs. Non-Standard Insurance: Key Differences
Standard Market Insurance:
- **Who qualifies**: Drivers with clean or minimal violations, good credit, licensed, no major gaps
- **Insurers**: Major carriers (GEICO, Progressive, State Farm, Allstate, Nationwide, etc.)
- **Pricing**: Competitive rates reflecting average risk
- **Coverage options**: Full range of coverages and endorsements
- **Discounts**: Bundling, good driver, good student, safety features, etc.
- **Claims service**: Extensive networks, 24/7 service, mobile apps
Non-Standard Market Insurance:
- **Who qualifies**: High-risk drivers rejected by standard market
- **Insurers**: Specialty companies (The General, Dairyland, Bristol West, Safe Auto, Titan Insurance, Acceptance)
- **Pricing**: Significantly higher rates (50-300% premium)
- **Coverage options**: Basic liability emphasized, comprehensive/collision available but expensive
- **Discounts**: Fewer available, smaller savings
- **Claims service**: Variable—some excellent, others basic
Important Note: Some major insurers operate non-standard divisions:
- **Progressive**: Pioneer (non-standard division)
- **Allstate**: Encompass and Esurance offer some non-standard products
- **Liberty Mutual**: Multiple subsidiaries serving various risk tiers
You might be in the non-standard market without realizing it if you're insured by a standard company's high-risk subsidiary.
Who Needs Non-Standard Car Insurance?
You're likely in the non-standard market if you have:
Major Violations:
- **DUI/DWI conviction** (especially recent or multiple)
- **Reckless driving** or excessive speeding (30+ mph over limit)
- **Driving with suspended/revoked license**
- **Multiple at-fault accidents** (2-3+ in 3-5 years)
- **SR-22 or FR-44 filing requirement**
License and Coverage Issues:
- **New US resident** with foreign license or limited US driving history
- **Lapse in insurance coverage** (6+ months gap)
- **License suspension** or revocation history
- **Very young driver** (16-18) without parental policy option
- **Unlicensed driver** needing insurance to reinstate license
Credit and Financial Factors:
- **Poor or no credit history** (in states using credit scoring)
- **Bankruptcy** or major financial judgments
- **Multiple non-payment cancellations**
Vehicle and Use Factors:
- **High-performance vehicles** for young drivers
- **Salvaged title** vehicles
- **Commercial use** without proper coverage history
Claim History:
- **Excessive claims frequency** (even if not at-fault)
- **Insurance fraud** history
- **Material misrepresentation** on previous applications
If you have multiple factors (e.g., DUI + bad credit + coverage gap), you're deeper in the non-standard market and will pay higher rates even within that segment.
For more background on high-risk classifications, see our guide on [car insurance for high-risk drivers](https://coverwise.io/car-insurance-high-risk-drivers).
How Much Does Non-Standard Insurance Cost?
Non-standard insurance costs dramatically more than standard coverage:
Price Comparison Examples:
Profile 1: Single DUI • Standard market before: $1,400/year • Non-standard after DUI: $3,200/year (129% increase)
Profile 2: Multiple Accidents + DUI • Standard market before: $1,600/year • Non-standard: $4,800/year (200% increase)
Profile 3: Coverage Gap + Poor Credit • Standard market: $1,200/year • Non-standard: $2,400/year (100% increase)
Factors Affecting Non-Standard Rates:
Severity of Risk Factors:
- **First-offense DUI**: Lower end of non-standard pricing
- **Multiple DUIs**: Upper end, some insurers won't cover
- **Recent vs. older violations**: Recent much more expensive
- **Combination of factors**: Multiplicative, not additive
Coverage Selection:
- **Liability-only** (state minimums): $150-400/month
- **Liability with higher limits**: $200-500/month
- **Full coverage** (comp + collision): $300-800/month
Many non-standard customers choose liability-only to minimize costs, especially on older vehicles.
Geographic Variations:
- **Urban areas**: Higher rates due to theft, accident frequency
- **States with high minimum requirements**: More expensive base coverage
- **No-fault states**: Generally higher non-standard rates
Payment Plans:
Non-standard insurers often require:
- **Higher down payments** (20-50% of six-month premium)
- **Monthly payments** (not full-pay discounts)
- **Automatic payment enrollment**
- **Reinstatement fees** if payment lapses
Total cost of non-standard insurance includes premiums plus these additional fees.
Top Non-Standard Insurance Companies
Dedicated Non-Standard Insurers:
The General • Specialization: DUI, SR-22, multiple violations • Coverage: All 50 states • Notable: Competitive rates for drivers with major violations • Downside: Limited coverage options
Dairyland Insurance • Specialization: SR-22 specialists, young drivers • Coverage: Most states • Notable: Flexible payment plans • Downside: Fewer discounts than standard market
Bristol West • Specialization: DUI, accidents, credit issues • Coverage: Most states • Notable: Good claims service reputation • Downside: Higher rates in some markets
Safe Auto • Specialization: Minimum coverage specialists • Coverage: 20+ states • Notable: Very basic, affordable liability-only • Downside: Limited comprehensive/collision options
Titan Insurance • Specialization: California specialist (expanding) • Coverage: California, Hawaii, others • Notable: Strong regional presence • Downside: Limited geographic availability
Acceptance Insurance • Specialization: Non-standard and standard-plus markets • Coverage: Most states • Notable: Local agent network • Downside: May be more expensive than online-only options
Standard Insurers That Accept Higher Risk:
Some mainstream insurers also accept many non-standard drivers:
Progressive • Often insures drivers others reject • Competitive rates for high-risk profiles • Full range of coverages available • Name Recognition program (usage-based discount)
GEICO • More forgiving than many standard insurers • Strong military/government employee programs • May classify you as "preferred risk" when others won't
State Farm • Local agent relationships can help • May work with customers to maintain coverage • Varies significantly by state and agent
Shopping Strategy:
Get quotes from **5-8 companies** including: • 2-3 dedicated non-standard insurers • 2-3 major insurers known for accepting higher risk • 1-2 regional insurers
Rates vary wildly—you might find 50-100% difference for identical coverage between non-standard insurers.
Coverage Options in the Non-Standard Market
Liability Coverage (Required):
- **State minimums**: Least expensive option
- **Recommended minimums**: 100/300/100 (still affordable)
- **Higher limits**: Available but expensive
Even in non-standard market, carrying adequate liability limits protects your assets. The incremental cost for higher limits (e.g., $50/year more for 100/300 vs. 50/100) is usually worth it.
Comprehensive and Collision:
- **Available**: Yes, but expensive
- **Typical deductibles**: $500-$2,500 (higher than standard)
- **Cost**: Often 2-3x standard market rates
- **Strategic decision**: Many non-standard customers drop these on older vehicles
Additional Coverages:
- **Uninsured/underinsured motorist**: Highly recommended, relatively affordable
- **Medical payments/PIP**: Available in most cases
- **Rental reimbursement**: Often not offered or very expensive
- **Roadside assistance**: Available from some insurers
- **Gap insurance**: Rarely available in non-standard market
What's Usually NOT Available:
✗ Accident forgiveness programs ✗ Vanishing deductible ✗ New car replacement ✗ Custom equipment coverage ✗ Usage-based insurance discounts (except Progressive)
Non-standard insurance focuses on basic protection, not bells and whistles.
SR-22 and FR-44 Requirements
Many non-standard customers need SR-22 or FR-44 filings:
What They Are:
- **SR-22**: Certificate of financial responsibility proving you carry minimum liability insurance
- **FR-44**: Similar to SR-22 but requires higher liability limits (Virginia and Florida)
Who Needs Them:
- DUI/DWI convictions
- Driving without insurance
- License suspension/revocation
- Multiple serious violations
- At-fault accident while uninsured
How They Work:
- 1. **Court/DMV orders** you to file SR-22/FR-44
- 2. **You request** filing from your insurer
- 3. **Insurer files** electronically with your state
- 4. **You maintain** continuous coverage for required period (typically 3 years)
- 5. **Any lapse** automatically notifies DMV → license suspension
Cost:
- **Filing fee**: $15-50 (one-time or annual)
- **Insurance impact**: The violation requiring SR-22 increases rates, not the SR-22 itself
All non-standard insurers handle SR-22/FR-44 filings—it's core to their business. Standard insurers may or may not file SR-22s, and some drop customers who need them.
How to Transition Back to Standard Insurance
Non-standard insurance isn't permanent. Here's how to return to standard market:
Timeline:
- **Year 1-2**: Stay in non-standard market, focus on clean record
- **Year 3**: Begin shopping standard market; some insurers may accept you
- **Year 4-5**: Strong candidates for standard market return
- **Year 5+**: Most violations aged off, fully eligible for standard rates
Strategies to Accelerate Transition:
Maintain Perfect Driving Record:
- No new tickets or accidents
- No coverage lapses (even one day restarts clock)
- Complete SR-22 requirement successfully
Improve Credit Score:
In states using credit-based insurance scoring:
- Pay all bills on time
- Reduce debt-to-income ratio
- Fix errors on credit report
- Build positive credit history
Take Defensive Driving:
- State-approved courses
- Shows commitment to safe driving
- May provide small discount even in non-standard market
Demonstrate Stability:
- Stable employment
- Homeownership
- Marriage/family (statistically lower risk)
- Low annual mileage
Shop Strategically:
- **After 3 years**: Get quotes from standard market every 6 months
- **Compare**: You might find standard insurer willing to insure you at better rate than non-standard
- **Don't cancel** non-standard until new policy confirmed
Gradual Improvement:
Some drivers move through stages:
- 1. **High-risk non-standard** (immediately after major violation)
- 2. **Standard non-standard** (2-3 years later)
- 3. **Non-standard division of standard insurer** (3-4 years)
- 4. **Standard market with surcharge** (4-5 years)
- 5. **Standard market, standard rates** (5-7 years)
Each stage brings lower premiums as risk profile improves.
Is Non-Standard Insurance Worth It?
When It's Your Only Option:
If standard insurers reject you, non-standard insurance isn't optional—it's required to:
- **Legally drive**: All states require minimum liability coverage
- **Reinstate license**: SR-22 requirement mandates insurance
- **Register vehicle**: Most states require proof of insurance
- **Avoid additional penalties**: Driving uninsured compounds your problems
Cost-Benefit Analysis:
Option 1: Buy Non-Standard Insurance • Cost: $2,400-6,000/year • Benefit: Legal driving, license protection, asset protection • Risk: High cost, but manageable
Option 2: Drive Without Insurance • Cost: $0 until caught • Benefit: Short-term savings • Risk: - Fines: $500-5,000 - License suspension: Months to years - Vehicle impoundment - At-fault accident liability: Unlimited personal exposure - Criminal charges in some states - Future insurance even more expensive
The Math:
Even at $6,000/year, non-standard insurance is cheaper than:
- One uninsured at-fault accident ($20,000+ potential liability)
- Fines + license reinstatement ($1,000-3,000)
- SR-22 requirement extension (restarting 3-year clock)
- Employment loss due to license suspension
Non-standard insurance is expensive but essential. The goal is minimizing time in this market by maintaining clean record.
Frequently Asked Questions
Standard insurance is for average-risk drivers from mainstream insurers at competitive rates. Non-standard (high-risk) insurance is for drivers with major violations, accidents, or credit issues who can't qualify for standard coverage. Same basic protection, but non-standard costs 50-300% more with fewer coverage options and discounts.
Non-standard insurance typically costs 50-300% more than standard market rates. A driver paying $1,200/year for standard coverage might pay $2,400-4,800/year in the non-standard market, depending on severity of violations and risk factors.
Top non-standard insurers include The General, Dairyland, Bristol West, Safe Auto, and Acceptance Insurance. "Best" depends on your specific violations and location—rates vary significantly. Progressive and GEICO also frequently insure drivers others reject. Always compare 5-8 quotes.
Most drivers remain in non-standard market for 3-5 years after major violations. Timeline depends on violation severity and maintaining clean record. DUI typically keeps you non-standard for 3-5 years; multiple major violations may require 5-7 years. Each clean year improves your options and rates.
Yes, non-standard insurers offer comprehensive and collision coverage, but it's expensive—often 2-3x standard market rates. Many non-standard customers choose liability-only to reduce costs, especially on older vehicles. Full coverage makes sense if financing a vehicle or if it's worth significantly more than annual premium.
Not everyone in non-standard market needs SR-22. SR-22 is specifically required by courts/DMV after DUI, driving without insurance, or license suspension. However, many non-standard customers do have SR-22 requirements. All non-standard insurers handle SR-22 filings—it's a core part of their business.