Enjoy this post by guest contributor Troy Conner, Senior Director of Insurance at Way.com
Auto Insurance. It’s a topic we’re all familiar with, at least knowing we must have it to operate a vehicle. Insurance protects you as well as others when driving. In some cases, depending on your personal history, you may not qualify to be insured by a company.
Most people are unaware that there is an alternative solution. Every state offers a program called “The Assigned Risk Pool” for drivers who cannot obtain insurance coverage through the voluntary markets. Car insurance companies must participate in the state pool and accept drivers assigned to them. If you are in the assigned risk pool, you’ll get coverage no matter what’s on your driving history, even if you have multiple speeding tickets or DUI convictions.
The reason you’ve never heard of it? It’s a government program and is not heavily marketed like public carriers.
While the Assigned Risk Pool is an option for ‘high-risk’ drivers, it also gives the consumer time to rehabilitate their criteria over time so that, eventually, they can return to the voluntary market at an affordable rate.
Typically, it takes around a year to qualify for regular insurance options (most carriers consider a 3-year history of violations and accidents.) While state-sponsored insurance is cheaper than a regular policy, there is a reason for this: the most affordable rates in the plan are for the state’s minimum coverage amounts.
The most common reasons for needing this assigned insurance include multiple accidents, DUIs, or numerous moving violations.
Unlike many government-assisted programs, getting this type of insurance can take as little as 48 hours. But every state is different.
The assigned risk pool in your state is not meant to be a ‘cure-all’ for your insurance needs. Instead, consider it an opportunity to rehabilitate your qualifications and eligibility. An end goal is to return to the public offerings in the open market at an affordable rate. The assigned risk plan is your vehicle for more insurance stability.
Visit your state’s Department of Insurance website to learn more about the assigned risk plan. You may be able to obtain a quote directly from the state or find a list of local agents that offer the plan in your area.
Jeannie Assimos is a veteran writer/editor with nearly two decades of experience. She began her career at Entertainment Tonight, followed by a VP of content position at online dating OG eHarmony. As the Head of Content at Way.com, she enjoys more road trips than ever as she checks out the latest Tesla models, and her dog Jonny Cash is always along for the ride.
