What is nonstandard insurance and why is it important?

It is a general misconception that nonstandard insurance is no more than substandard insurance. A lot of people are under the impression that insurance companies supplying nonstandard cover don’t provide their customers with good service and aren’t really viable operations. This could not be further from the truth impression, it is a complete fallacy.

Quite simply, nonstandard and standard insurance are very different from each other. Nonstandard insurance is aimed at individuals – both people and businesses. The form for nonstandard insurance is the same as that used for standard insurance but any figures entered are determined by individual requirements. This type of insurance is likely to be cheaper than its standard counterpart, only what is required is paid for.

Carriers accept nonstandard insurance policies because they can cover a larger number of people, who may not be able to obtain standard insurance cover. Nonstandard insurance policies also cover a wider range of risks, including life, home and auto insurance.

Standard policies are popular among mainstream insurers because risks are minimised by the a lower risk exposure of the people, homes or cars insured. The variables between nonstandard and standard policies are not determined by the financial health of the carrier but by the risks involved.

For example, when someone has a record for driving under the influence of drink or drugs, he or she requires nonstandard insurance, as would any motorist with any other type of serious conviction. People operating in high-risk professions, such as sky divers or stunt drivers would probably need nonstandard insurance too.

With regards to homes, nonstandard policies apply to properties built with unusual construction techniques like roofs made of thatch, timber or felt. Nonstandard policies are also sought by homeowners, who over a short period of time have made a large number of claims, or because there’s been a nondisclosure of important facts and an insurance policy has lapsed or not been renewed.

Therefore, nonstandard insurance is not substandard insurance. It is insurance needed when average circumstances do not apply.

At MTP we can offer great rates from leading insurers and we have access to a variety of schemes and products. We guarantee cheap prices, great levels of cover, and great service.

The premium on nonstandard policies is based upon the facts presented to the carrier we use. We can advise you on a range of nonstandard insurance policies and will always aim to find the one to protect your most important assets. Contact us now for more information.