Oregon auto insurance companies use rating categories to classify their customers and determine how much to charge for their coverage. The higher the level of risk that an applicant presents, the more he or she will pay for car insurance coverage. The three classifications auto insurance companies use are Preferred, Standard and Nonstandard.
Being classified as a Preferred driver means that a customer is considered a relatively low risk for car insurance purposes. They have maintained a clean driving record for at least three years, and pay the best rates for their coverage.
Customers in the Standard category for Oregon auto insurance purposes are considered a moderate risk. They have relatively clean driving records and tend to drive “family” vehicles. The rates charged to Standard customers are higher than the ones paid by Preferred customers.
Nonstandard is another word for high-risk drivers. A person who is placed in this category will pay the highest rates for his or her car insurance coverage, and may include those in the following situations:
- Driver under the age of 25
- Inexperienced driver
- Previous accidents and/or traffic tickets
- Poor record of making premiums payments on time
- Prior conviction for reckless driving
- Previous conviction for DUI/DWI offense
Some insurance companies may refuse to cover Nonstandard-rated customers at all, and they may have to seek coverage from companies specializing in serving this marketplace.