There are so many benefits of having an insurance policy, one of them is because it gives peace of mind in the occurrence of an unexpected and unpredicted event and also a helping hand for the many expenses often involved after an incident.

Agreement between you and the company

An auto insurance policy gives you protection against losses in the occurrence of an accident or your car being stolen. This is an agreement between you and the company. You pay a premium while the company, in turn, agrees to pay for your losses as stipulated in your policy up to a certain specified limit. This provides property, medical and liability coverage in the event a claim is filed.

Property coverage pays for the damage or the theft of your car and medical covers payments for the treatment of injuries. Many extended coverage policies will also pay for rehabilitation and funeral expenses. Auto liability insurance coves you in the event a crash occurs that you were deemed responsible for. Almost all states require you to carry minimum amounts of liability insurance, but not all of the various options, such as comprehensive.

Evaluating your risk

The basic benefit of having insurance is the financial peace of mind gained from the policy. This benefit varies based on the type of policy you buy. Many companies evaluate your risk level before they come into a contract with you. They calculate the possibility of accidents happening while you are driving, the number of hours you drive and so on.

auto parts in term makes them group you into a low risk or a high-risk group, which in turn will determine to a large extent your rates. The major differences between these groups is simply perceived risk. Those with low risk are said to be eligible for a standard insurance while those with higher risk are said to be tagged as non-standard drivers and will pay more.

Standard coverage is designed for low-risk policyholders

These policies have little or no difference from one another, in terms of the price of the policy and the scope of their coverage. This policy has specific determining factors for coverage. For example, the auto insurance policy only covers drivers with clean driving records that have no traffic violation, accidents and filed insurance claims. A standard policy has more restrictions and is regulated by the state where they are issued.

A lot of drivers are considered to be of high risk or non-standard by most insurance companies today. The number of drivers who have fallen into this category has increased over the last decade. Drivers who are placed in this category based on driving records, age, experience, credit history records, driving records, hours of driving and other factors are time and again turned away by some insurance companies.

Falling into the non-standard category

In some cases, inferior coverage options are offered to non-standard drivers and at very costly rates. Drivers fall into the non-standard category mostly because of their driving records. This includes people who have had their licenses revoked or suspended in the last couple of years and those who have excessively violated traffic or have been arrested and convicted of driving under the influence (DUI) or driving while intoxicated (DWI). Senior citizens, new drivers and teenagers are also considered non-standard drivers.

There is a wide range of coverage for non-standard drivers, so you can find a policy that suits your need whatever the situation may be. If you have been labeled as a high risk or a non-standard driver, it is probably because of your age, your level of experience, driving record and other factors. Don't be discouraged, you still have many options for auto insurance. Countless drivers in all categories find the insurance policy that best suits them with a pocket-friendly rate, coverage options, and customer service that can't be beaten.

Every so often these special insurers are able to offer a far more competitive price. Some large and well-known insurance companies own smaller non-standard companies and through their agents offer direct pricing that will save you more.