What is Assigned Risk?
<lingo>Assigned risk is a type of automobile insurance plan designed to help high-risk drivers get automobile insurance coverage to put them in compliance with their state's automobile insurance requirements. Companies who wish to sell insurance in a state will be assigned these high-risk cases. High-risk drivers applying for coverage in a state will be assigned to one of these participating companies. This, in essence, has insurance providers sharing the risks involved in covering these high-risk drivers while facilitating coverage for drivers with a high-risk history.</lingo>
Assigned Risk Briefly Explained
Since all states have some form of auto insurance or financial responsibility requirements to operate a vehicle legally, provisions had to be made for higher risk drivers to comply with these regulations. Assigned risk is the solution. When a high-risk driver applies for insurance in a state and doesn't qualify for standard insurance rates, they will be “assigned” to an insurance provider licensed to sell auto insurance in the state.
<twitter>Assigned risk is a type of automobile insurance plan designed to help high-risk drivers get automobile insurance coverage</twitter>
Typically, drivers who have accumulated a large amount of points on their driving records, have been involved in multiple accidents or have received a DUI are considered high risk. Assigned risk policies can be expensive so drivers can benefit from qualifying for standard automobile insurance coverage.
<zipcode>Get the best rates in your area and start saving:</zipcode>