Standard Auto Insurance Policy

Updated: 09 June 2023

What Does Standard Auto Insurance Policy Mean?

A standard auto insurance policy is a basic auto insurance policy typically only offered to people who represent a low or average risk to the insurer. To qualify, a person usually has to meet certain desirable criteria related to driving history, credit, and certain other factors. The insurer considers the applicant's characteristics and relies on actuarial data derived from other similar drivers to determine the premium charge.

Insuranceopedia Explains Standard Auto Insurance Policy

A standard auto insurance policy typically provides coverage for bodily injury, medical expenses, collisions, and property damage. These policies are the more desired alternative to nonstandard auto insurance policies, as the latter refer to policies for people whom insurance companies view as higher risk. For this reason, standard auto policies tend to carry lower premiums in comparison due to the lower risk associated with "standard" drivers. Generally, standard drivers have a good driving record over a long period of time, good credit, do not drive a sports car, and drive to commute or short distances.

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