What does standard auto insurance cover?

The best auto insurance companies offer policies in adherence with each state DMV. All drivers must carry automobile insurance to comply with state auto insurance laws. But what does standard auto insurance cover?

Standard types of auto insurance provide personal liability coverage after an accident to pay for damages you cause. Full coverage auto insurance pays for damages to your vehicle after an accident and is part of standard auto insurance if you add it to your policy.

Standard and non-standard auto insurance provide the same coverage, but non-standard rates are more expensive. Keep reading to learn more about basic auto insurance coverages explained, what standard auto insurance covers, and what kind of car insurance policy you might need.

Standard Auto Insurance Policies

Auto insurance coverage falls into three major categories:

• Collision: Collision covers damage in the event of a collision between a moving vehicle and another vehicle or stationary object. Payout limits and deductibles determine how much money the insurance company will pay for each claim and how much money the driver must pay out of pocket.
• Comprehensive: This component covers damage that may occur while a vehicle is not in motion, including theft, vandalism, storm damage, or fire. Compare the difference between collision vs. comprehensive auto insurance coverage.
• Liability: Is 250/500 insurance worth it? Many states require 250/500 in bodily injury and property damage liability to cover the other driver in accidents you cause, but most require lower limits, such as 25/50. Either way, 250/500 in liability insurance might be worth it to cover serious injuries or collisions with expensive cars.

Some states require standard auto insurance policies made up of various coverages that some drivers may be unfamiliar with, including:

• Medical payments coverage: Do you need medical payments coverage on auto insurance? Medical payments helps cover medical bills sustained by the auto insurance policyholder in an accident regardless of fault. This policy also covers passengers in the policyholder’s vehicle.
• Uninsured motorist coverage: In the case of an accident, policyholders may encounter drivers that don’t have insurance. Uninsured motorist coverage will cover the cost of the other driver.

Multiple factors affect standard auto insurance rates, including coverage type, accident statistics, repair statistics, prices for replacement parts, driving records, and car prices.

Non-Standard Auto Insurance Policies

Some insurance companies can refuse to underwrite a standard auto insurance policy. You might need to buy non-standard auto insurance if you have a:

• High incidence of claims: Drivers with a significant number of auto insurance claims can be denied coverage from standard auto insurance companies
• Serious accident: A driver who caused an extremely serious accident through negligence will find the search for auto insurance coverage very difficult. Insurers can refuse to underwrite a policy based on your driving record
• DUI: People always want to know if it is possible to find cheap auto insurance with DUI violations. Some insurance companies may refuse to underwrite auto insurance policies for anyone with a DUI conviction.
• Custom-built car: Vehicles with custom features are not underwritten through standard auto insurance policies.
• Classic car: Collectible and classic cars do not depreciate like standard vehicles and often will not be covered through standard auto insurance.

Fortunately, you can look for insurance quotes without providing a Social Security number or driver’s license. Compare rates from the best auto insurance companies for high-risk drivers to find the best price on a non-standard policy.

Auto Insurance Discounts On Standard and Non-Standard Policies

Auto insurance discounts are available to drivers who demonstrate responsible driving habits. It is important to know what discounts are offered and know which ones you qualify for, such as:

• Driving record: Insurance companies rely on past performance as an indicator of future risk. A clean driving record can lower your premiums. Typically, your past three to five years influence annual premiums. Read more about how auto insurance companies check driving records.
• Driver profile: Age, location, and claims history are tracked closely to create statistics for each insured class. All these factors will affect the cost of your premiums.
• Vehicle features: Some cars are more expensive to repair or replace than others. The value of your car will also affect the cost of your insurance rates.
• Driver education: Driver training courses reduce the number of claims that are filed by drivers. Significant discounts on standard insurance policies are awarded to drivers who are willing to complete these courses.

Automobile insurance companies cover a wide variety of drivers and vehicles through standard car insurance policies.

What You Need to Know About Standard Auto Insurance Coverage

Most state minimum auto insurance requirements include liability, which is a type of standard car insurance coverage. You can add full coverage with collision and comprehensive insurance to any standard policy, but your rates will increase. Rates are also higher for non-standard car insurance, but those types of policies typically provide the same type of coverage. Read more about what non-standard auto insurance companies offer.

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— AutoInsurance.org (@AutoInsurance) February 22, 2023

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