There are standard and substandard risk classes. (quotacy.com)
Basic Auto Policy: Although still used today to insure substandard risks, two - wheel motorized vehicles, and commercial autos, the Basic Auto Policy has been primarily replaced by the Personal Auto Policy, which combines both physical damage coverage and liability insurance for claims arising out of the ownership or use of a vehicle. (carinsurance.com)
An additional premium is charged for substandard risks due to the higher probability that the insured will have a shorter lifespan than those who are a standard risk. (freewayinsurance.com)