Automobile Assigned Risk Insurance Plan

What Does Automobile Assigned Risk Insurance Plan Mean?

An automobile-assigned risk insurance plan is an auto insurance program designed to provide coverage for drivers who are considered high-risk by insurance companies. Drivers may be categorized as high risk if they have poor driving records, including multiple accidents, tickets, or other violations. Drivers who end up in assigned risk pools are also often required to file an SR-22 form with their state to prove they carry the minimum liability coverage required by law.

Insuranceopedia Explains Automobile Assigned Risk Insurance Plan

Automobile-assigned risk insurance plans typically come with higher premiums, as the insurer faces a greater likelihood of having to pay out a claim. As a result, having a poor driving record can be costly, and even a single speeding ticket can raise your rates for several years. These plans serve as alternatives to standard or preferred auto insurance policies. Standard auto plans are offered to drivers with an average level of risk, while preferred auto policies are given to drivers with the lowest level of risk. For drivers stuck in an assigned risk plan, there are still practical ways to lower your auto insurance rate once you’ve gone a few years without new violations.