Private-Passenger Auto Insurance Policyholder Risk Profile


  • Generally, drivers are sorted into three risk profiles in order of lowest to highest risk: preferred, standard, or nonstandard (also known as "substandard" or "high risk"). Auto insurance companies use a client's risk profile, and by extension the client's driving record, to determine their insurance premiums. Preferred drivers have near spotless records and present a low risk; they will have low insurance premiums. Nonstandard drivers may have numerous traffic violations and/or collisions and present a high risk; they will have high insurance premiums. Standard drivers have an average driving record and will have insurance premiums valued somewhere between those paid by preferred and nonstandard drivers.

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Related Terms and Acronyms

  • Automobile Liability Insurance Definition,
    • Insurance coverage for damages caused in traffic collisions.
  • Collision Insurance Definition,
    • Auto insurance that provides coverage for damages to the policyholder's vehicle in the event that the policyholder is at fault in a traffic collision.
  • Comprehensive Insurance Definition,
    • Auto insurance that covers damages not resulting from a collision, and for vehicle theft.
  • High Risk Auto Insurance Definition,
    • Auto insurance for drivers with an increased risk of collisions.
  • Insurance Score Definition,
    • A score used by those in the insurance industry to determine how likely a claim will need to be paid out for an individual or entity.
  • Preferred Auto Definition,
    • Auto insurance for those with better driving records.
  • Risk Class Definition,
    • A number of people who are grouped together because they pose similar levels of risk to an insurance company.
  • Standard Automotive Insurance Definition,
    • Auto insurance that covers those with average driving records.
  • Substandard Insurance Definition,
    • Insurance for those who are ineligible for standard insurance due to higher risk profiles.
  • Underinsured Motorist Coverage Definition,
    • Auto insurance that covers damages when the other driver in a collision is at fault but does not have sufficient insurance coverage.
  • Uninsured Motorist Coverage Definition,
    • Auto insurance that covers collision damages caused by a driver without auto insurance.
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