Florida is a unique market for auto insurance. As one of the few states with a no-fault insurance system, Florida residents can often find themselves overwhelmed while trying to navigate their auto insurance options. One type of coverage that frequently raises questions is Florida non-standard auto insurance.
This insurance coverage is designed specifically for drivers struggling to secure standard or traditional auto insurance. In this guide, we’ll explore what non-standard auto insurance is, who it’s for, and why it’s essential.
What Is Non-Standard Auto Insurance?
Insurance companies typically divide their coverage into three risk tiers: preferred, standard, and non-standard.
Those under the preferred tier usually have a clean driving record, excellent credit score, no lapse in coverage, a low number of claims filed, and have had at least six months of the previous coverage. Given that they pose the least risk, they also receive the better rates.
Under the standard tier, drivers can have one or two minor traffic violations, an average credit score, and previous insurance coverage. They also receive good rates under standard auto insurance, but they have the opportunity to improve their standing by working on certain areas of their driving.
The last tier, the non-standard category, is reserved for high-risk drivers. The policies under this are typically more expensive due to the increased liability high-risk drivers present. More often than not, this is one of the last resorts for those denied standard insurance coverage or issued a non-renewal.
Rest assured, non-standard does not equate to sub-standard policies. Florida non-standard auto insurance companies are still mandated by law to offer the same types of coverage that standard ones do, but only at typically higher price points.
Can You Improve Your Non-Standard Rating Tier?
Yes. You can still work your way up to a standard rating to get better rates and coverage options during renewal. Here are a few ways you can do that:
- Maintain insurance coverage: Don’t allow your insurance to lapse. Even a one-day lapse can affect your premium by as much as 12%.
- Improve your credit score: Drivers with low credit are often at risk of paying twice as much as those with good credit scores.
- Improve your driving record: Strive to keep your driving record as clean as it can be.
Who Needs Non-Standard Auto Insurance?
If you fall into any of the groups below, you might need non-standard auto insurance.
- Multiple tickets or accidents in your record: If you have had multiple traffic violations under your record such as driving under the influence (DUI), reckless driving, or driving without a license, you’ll likely be labeled high-risk. Insurance companies qualify these as high-risk signifiers that can lead to accidents.
- Lapse in coverage: Nearly all states require drivers to have auto insurance, so it’s ideal for insurance companies to see a consistent record of coverage. Those with lapses for even less than 30 days are considered riskier.
- SR-22 or FR-44: If you’ve been convicted of DUI or other forms of serious traffic violation, you are required by law to carry an SR-22 or FR-44. Your auto insurance provider will file one on your behalf before you can re-register your vehicle and qualify for a non-standard insurance plan.
- Salvage Title Car Owners: Salvage title cars are considered high-risk because they have been excessively damaged or deemed a total loss. They’re generally unsafe on the road and require an appropriate insurance plan.
- Luxury Car Owners: The high prices of luxury vehicles make them harder to insure. Additionally, because of their high-powered engines, luxury drivers are often at risk of speeding, deeming them a great risk. However, some insurance providers do provide competitive luxury car insurance plans.
How Much Is Florida Non-Standard Auto Insurance?
The cost of non-standard auto insurance can vary depending on the reason you’re getting it and the average premiums of the state you’re in. For Florida drivers, prices can start at $1500 all the way to $4000.
Factors That Affect Car Insurance Rates
The cost of your car insurance can be affected by several factors including:
- Age and Gender: Young drivers, particularly males under 25, are often charged with higher rates due to statistically higher accident rates.
- Credit Score: Insurers view those with low credit scores as more likely to file a claim leading to higher offer rates.
- Vehicle Type and Uses: The model, make, age, and intended use (commercial or personal) of your vehicle can significantly affect premiums.
- Driving Record: Drivers with multiple infractions generally face higher premiums.
- Location: Areas that are more accident-prone, such as Florida, which is notorious for accidents due to heavy traffic volumes and dense population centers may have higher insurance costs than other states.
Why Is Non-Standard Car Insurance Important in Florida?
Florida is known for its often challenging insurance environment, making non-standard car insurance more relevant. Here are a couple of reasons it is essential.
- No-Fault Insurance State: Because of this policy, all drivers are required to carry Personal Injury Protection (PIP) to cover their medical expenses or lost wages in case of an accident regardless of who is responsible. This can make insurance options more complicated for high-risk drivers.
- Stringent Penalties for Uninsured Drivers: Florida drivers caught without insurance can suffer from strict penalties including fines, vehicle impoundment, and license suspension. For higher-risk drivers, non-standard policies allow them to remain legally compliant despite their profiles.
- High Rate of Uninsured Drivers: According to the Insurance Information Institute, as of 2024, 16% of Florida drivers remain uninsured. This increases the risk for all drivers on the road and makes having some form of insurance crucial.
How to Choose the Right Non-Standard Auto Insurance in Florida For You?
Selecting the best car insurance policy for your needs requires careful consideration. Here’s a step-by-step approach you can follow.
- Assess Your Needs
Understand why you need this kind of car insurance and what are your most significant risks. This will help you determine the coverage you need.
- Research and Gather Quotes
Look for credible non-standard insurance providers and gather multiple quotes. Compare their premiums, coverage options, and customer reviews to find the best fit for your budget and needs.
- Understand the Coverage Limits: Be aware of what is covered, and more importantly, what is excluded from your policy. For instance, some policies may only cover the state minimum, which may not be enough to cover your medical expenses in the case of an accident.
- Explore Available Discounts: Even in the non-standard market, there are still avenues for you to gain discounts. Qualifiers may include maintaining a good driving record, completing defensive driving courses, or bundling multiple policies.
- Review Policy Flexibility: Check if the insurance provider allows flexible payment plans to help you manage costs.
Conclusion
While it may come at a higher cost, non-standard auto insurance ensures that all drivers, regardless of their risk profile, have access to essential coverage. These aren’t only necessary to comply with the law but also to safeguard you in Florida’s busy roads. By understanding what it entails, what factors affect it, and why it’s necessary, you can make informed decisions that protect you and your vehicle.
Drive with peace of mind and protect yourself and your valuable assets with F&N Insurance Group. We are your trusted partner for affordable and comprehensive insurance solutions. Our dedicated team of experts is here to guide you and offer tailor-made policies to your needs. Contact us now and get a free quote to safeguard your future!