What is considered non-standard insurance?

Non-standard insurance is a specialized policy designed for individuals or items deemed high-risk by traditional insurance companies.

Who and What Needs Non-Standard Insurance?

While it can apply to various niche markets, it is most commonly used for auto insurance. You may need a non-standard policy if you have:

• Poor driving record: Multiple speeding tickets, reckless driving, at-fault accidents, or a DUI.
• Coverage gaps: A history of letting your previous insurance policy lapse.
• License issues: A suspended or revoked license, or a requirement to file an SR-22/FR-44 form.
• Inexperienced or unusual drivers: Very young drivers, elderly new drivers, or foreign nationals with no U.S. driving history.
• Credit or background issues: A poor credit history (where allowed by state law).
• Unique vehicles: Custom, classic, or salvage-titled cars.

How Does It Work?

• Same core coverage: Once active, a non-standard policy provides similar legal and physical damage protections (like liability, collision, and comprehensive coverage) as a standard policy.
• Higher cost: Premiums are significantly more expensive because insurers take on a much higher statistical chance of paying out a claim.
• Specialized providers: Not all mainstream insurance companies offer high-risk policies; you often have to look to specialized carriers. You can explore options through companies that cater to these profiles like Dairyland Auto or compare offerings via guides like Investopedia's Nonstandard Auto Overview.

GEICO is primarily a standard auto insurance company, though it can occasionally accommodate drivers with some extra risk.

Standard vs. Non-Standard Market

• Standard Market: GEICO mainly targets standard, preferred, and lower-risk drivers with clean or mostly clean driving records.
• Non-Standard Market: Companies like The General or GAINSCO focus exclusively on high-risk drivers with major tickets, DUI history, or lapses in coverage.
• Underwriting Tiers: Most users on Reddit agree that GEICO uses separate underwriting subsidiaries to place drivers into preferred, standard, or slightly sub-standard tiers depending on their credit and history, but it remains a mainstream standard carrier.

Non-standard auto insurance companies specialize in coverage for high-risk drivers, such as those with DUIs, accidents, poor credit, or lapses in coverage.

Here are 10 prominent providers that cater to high-risk or non-standard drivers:

1. 📌 The General
   • Focus: High-risk drivers needing quick approval.
   • Parent Company: American Family Insurance.
2. 📌 Direct Auto Insurance
   • Focus: Flexible payment plans and SR-22 filings.
3. 📌 Kemper Auto Insurance
   • Focus: Specialized high-risk and specialty vehicle policies.
4. 📌 Bristol West Insurance
   • Focus: Drivers declined by standard carriers.
   • Parent Company: Farmers Insurance.
5. 📌 Dairyland Insurance
   • Focus: Minimum-limit liability and high-risk operators.
6. 📌 SafeAuto
   • Focus: State minimum liability and budget-conscious drivers.
7. 📌 Infinity Insurance
   • Focus: Drivers with unique risk profiles or past infractions.
8. 📌 National General
   • Focus: High-risk and non-standard personal auto lines.
9. 📌 Foremost Insurance
   • Focus: Specialty and high-risk coverage options.
10. 📌 Acceptance Insurance
    • Focus: Bad credit and severe driving record issues.

(Note: While major standard carriers like Progressive and GEICO also write non-standard policies, the list above highlights dedicated specialists or subsidiaries).

Progressive offers both standard and non-standard car insurance.

Background and History

• Non-Standard Roots: Progressive was founded in 1937 and famously grew by specializing in non-standard, high-risk auto insurance that other conventional insurers avoided.
• Modern Operations: Today, it functions as a mainstream, full-service carrier. It serves everyday low-risk drivers with standard policies while maintaining options for high-risk drivers.

Who Non-Standard Policies Are For

Non-standard insurance is designed for drivers who present a higher statistical risk to insurers, such as those needing:

• SR-22 or FR-44 financial responsibility filings.
• Coverage after multiple tickets, accidents, or a DUI.
• Coverage despite a long lapse in insurance history.
• Solutions for drivers with low credit scores or severe past claims.

There is no single "worst" auto insurance company, but major carriers like Allstate, Liberty Mutual, and Progressive frequently rank poorly in customer satisfaction and claim-handling reviews.

Major Insurers with Frequent Complaints

• Allstate: Often criticized by consumer advocates and attorneys for using strict claim-evaluation software (like Colossus) that can delay or lower payout offers.
• Liberty Mutual: Frequently scores low in consumer satisfaction surveys due to high rates of disputed claims and sudden rate increases.
• Progressive: Regularly cited by customers and repair shops for lowball vehicle damage evaluations and pushing for cheaper or repaired parts over replacements.
• State Farm: While massive in market share, it often lands in lower consumer tiers for aggressive claim-denial strategies.

Budget and Regional Insurers to Watch

• Low-Cost Non-Standard Insurers: Companies like Ocean Harbor, Direct General, and United Auto often rank lowest among personal injury attorneys because they offer very cheap rates but aggressively deny or contest valid claims.
• Bottom-Scoring Regional Brands: In annual satisfaction studies like J.D. Power's Auto Insurance Shopping Study, brands like Safeco and Mercury routinely score at the bottom.