Compare Assigned Risk Car Insurance: Rates, Discounts, & Requirements [2024]

What exactly is an assigned risk car insurance policy? Well, an assigned risk auto insurance policy is one that covers high-risk drivers. Your state offices will insist that you have an auto insurance policy in effect before you get your license.

However, if you are in a high-risk category, then landing such a policy is easier said than done.

Your state offices will insist that you have an auto insurance policy in effect before you get your license. However, if you are in a high-risk category, then landing such a policy is easier said than done.

The term assigned risk refers to individuals who are grouped within a specific risk category. A high-risk group could refer to any number of factors, like young drivers under the age of 25 or individuals that live in a high-risk area.

A high crime rate or a city with many dangerous intersections could immediately qualify as an assigned risk territory.

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The State Comes to Your Aid

Even if a newly insured person has a good driving background or a clean record, just the assign risk category can hike up the price of insurance rates.

Other factors that might indicate an assigned risk classification include types of vehicles that have an increased risk of being stolen or damaged in a collision.

Now, what if you live in a high-risk area, are under 25 years of age, and have a spotty driving record? If this is the case, you might have difficulty finding an insurance company that will cover you.

Here is where assigned risk insurance comes in handy. Most states do have a special assigned risk auto insurance plan available to consumers in high-risk categories.

This plan is the last resort when no other commercial insurance wants to cover you. It will be more expensive than standard policies.

Read more: Learning About High-Risk Car Insurance

Two Avenues You Can Pursue to Obtain Assigned Risk Auto Insurance

The easiest way to do this is to seek a consultation with an insurance agent. Though these programs are made possible by order of the state, an insurance company will be handling the underwriting.

The insurance agent will first attempt to contact a commercial company to see if you can qualify for normal coverage.

If three different companies deny you insurance, then the agent will complete a form for assigned risk insurance and send it to the appropriate state department.

The letter will explain that you are in a high-risk category and need assign risk car insurance if you ever want to drive. You can also apply for an assigned risk category on your own by contacting your state insurance department.

Their intervention will help your case, and they will put you in contact with an insurance company that can work with you. Contact the Department of Motor Vehicles (DMV) for more information.

What is involved in an assigned risk insurance policy?

The policy is usually limited in that you only pay for the minimum amount of coverage that is required by state law.

Naturally, because of the increased risk, your premium rates are going to be high. However, the policy will accept you, regardless of qualifications. This will give you an opportunity to get behind the wheel and make your ride legal.

In the meantime, you can think about switching providers or using other methods to save on car insurance. In the future, perhaps you will able to qualify for a better policy.

Usually, a motorist must maintain a clean driving record for about three years (without missing any payment), before he or she can climb out of the assigned risk category.

Is a state-sponsored high-risk category the only option?

In some states, buying an assigned policy is not a necessity. In this case, you can look for a non-standard policy from a private insurance company. Try to shop around various insurance companies before assuming that an assigned risk insurance policy is your only option.

If you are a high-risk driver, get information about non-standard insurance programs. Just because one auto insurance company turns you down does not mean that you are uninsurable! Rules for policyholders tend to change very often, so it would serve your interest to keep on top of these changes. If you have a poor driving record, you might need to shop around for insurance quotes.

Start by looking up new insurance providers using a car insurance rate quote tool. This web tool brings you a comparison of auto insurance policies in your area and returns results based on your demographics, driving history and driving lifestyle.

Use our free insurance comparison by entering your zip code below!