Standard Auto Insurance Policy
What Does Standard Auto Insurance Policy Mean?
A standard auto insurance policy is a basic policy generally available only to individuals who pose a low or average risk to the insurer. To qualify, applicants typically need to meet specific criteria related to driving history, credit score, and other factors. The insurer evaluates the applicant’s profile and uses actuarial data from similar drivers to determine the premium rate.
Insuranceopedia Explains Standard Auto Insurance Policy
A standard auto insurance policy typically covers bodily injury, medical expenses, collisions, and property damage. These policies are generally preferred over nonstandard auto insurance policies, which are designed for individuals deemed higher risk by insurers. Consequently, standard auto policies usually have lower premiums, reflecting the reduced risk associated with “standard” drivers. Typically, standard drivers have maintained a good driving record over time, possess good credit, do not drive high-performance vehicles, and use their vehicles for commuting or short-distance travel.
