Reader’s Question:

I am on my senior year, and my parents are planning to buy me a car as a gift. I don’t really know how to drive yet but they said they will enroll me in driving school here in Chicago. Could you tell me what kind of vehicle insurance should I get once I get my own car? Somebody mentioned “nonstandard insurance” to me. Will I be given that kind of insurance, too?

Nelson

Chicago, IL

Often, beginner drivers are regarded by vehicle insurance companies as high risk because of their lack of experience in driving. High risk drivers are normally offered higher-than-average premium rates because they have a tendency to cause frequent payouts than those drivers who are considered as low risk. Payouts happen when a driver is involved in an accident in which he is found at fault. As we know, vehicle insurance companies avoid payouts as much as they can because they don’t earn from it. Therefore, if they think that a certain driver can cause more damage or accidents than an average driver, then that driver will be given nonstandard insurance with a special premium rate.

Nonstandard insurance is a type of vehicle insurance that is normally given to drivers who cannot purchase insurance at standard rates because of various reasons such as poor driving record, numerous insurance claims, insufficient driving experience, high performance vehicle ownership, or insurance coverage lapses.

Go insurance shopping there in Illinois, and you may find that some companies that offer nonstandard vehicle insurance. Do not be surprised by the high rates. You could still find a way to lower this by availing of discounts offered by the company. Just ask the vehicle insurance agent about it.

Tags: auto insurance premium, Car Insurance Company, car insurance rate, high risk insurance