High-risk drivers usually experience difficulty finding car insurance. The risk of insuring these drivers is something most insurance companies are unwilling to take. It’s understandable because they can make claims that exceed their annual premiums in the long run, as a typical high-risk driver has had too many accidents and speed tickets. Insurance providers decline them any offer for insurance.
Assigned risk pools for auto insurance are your last resort when other options fail. They offer the state’s minimum insurance coverage when other insurers turn you down.
What Is an Auto Insurance Assigned Risk Pool?
High-risk drivers might not always be immediately turned down by an auto insurance company. However, sometimes the insurance provider requires an immensely expensive premium. The insurance provider does this to ensure they can make payment for all claims without taking a loss from covering a high-risk driver. Beyond getting insurance, all drivers must meet the minimum level of car liability insurance requirements.
All car insurance companies must belong to the state’s assigned risk pool. In the state pool, an insurance provider can’t refuse any driver that is assigned to their company, regardless of the risk attached to the driver. Numerous speeding tickets or frequent accidents aren’t sufficient reasons to turn down a driver in the state pool.
What Should You Expect?
The rates for insurance in an auto insurance assigned risk pool are higher than you’d get in a voluntary market. Even worse, you can expect to have very limited coverage. You can expect an exclusion of collisions and comprehensive insurance coverage in an assigned risk pool auto insurance policy. Some states limit the amount of liability on your insurance policy and allow you to add collision and comprehensive damage within that limit. Nevertheless, when you have assets that are more than your limits, your insurance policy becomes inadequate. This simply means that there are no limits to what you can lose as a result of a lawsuit.
Who Is Likely to Require Assigned Risk Pool Auto Insurance?
- Drivers with no insurance record or a very bad insurance record. Frequent claims and missing payments are characteristic of a bad insurance record.
- Drivers with a poor driving record resulting from multiple speed tickets, accidents, convictions, and at-fault accidents.
- Drivers with no driving history but risky driving habits.
- Drivers with poor credit. There’s a connection between poor credit and the likelihood of making insurance claims.
- Drivers with high risk like owning a very luxurious car, living in an area with a high rate of vandalism and theft, etc.
As stated above, assigned risk pool insurance should be your last resort. Exhaust the list of insurers in the voluntary market and compare rates to choose what works for you best. If you can’t find any, check non-standard insurance companies, such as private insurers. If you are concerned you might require assigned risk pool auto insurance, you can trust our team of experts at Massive Insurance to attend to all your insurance needs today.