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Assigned Risk Auto: What You Need to Know

Assigned Risk Auto: What You Need to Know

In most states, Auto Insurance is mandatory. You cannot register a vehicle without it and if you have it and then lose it, you can lose your drivers license. For businesses, you can also lose important contracts if you do not have auto insurance coverage.

For those individuals and businesses that have multiple claims or bad driving records, an Assigned Risk auto insurance policy may be the only option available besides self-insurance (which is another article altogether). Here is what you need to know:

Low Cost = Low Coverage

Assigned Risk auto insurance plans such as the California Automobile Assigned Risk Plan (CAARP) often bill themselves as “low cost” auto insurers, designed for both high-risk drivers and vehicles and those who cannot afford coverage on the open market.

The fact is you get what you pay for. For instance, CAARP offers personal auto limits of $15,000 bodily injury per person; $30,000 bodily injury per accident; and $5,000 property damage (15/30/5) which is the minimum mandatory insurance limits in California. While these limits will satisfy the state, this coverage will most likely not be adequate in the event of an accident.

For commercial vehicles, the coverage limit is dependent on the filing requirements for that business. If your business has contracts with general contractors, government agencies or municipalities, higher coverage is usually required, typically $1,000,0000 or more. The assigned risk limit would not be enough.

It’s Liability Only

Assigned risk coverage typically only covers your personal auto or business needs for liability. Should you require other coverage, you would need to go to an outside market. There is no coverage under assigned risk auto for:

  • Comprehensive and collision coverage
  • Special equipment
  • Excess auto liability coverage
  • Towing and labor
  • Lease or loan gap

These policies can often be purchased separately from assigned risk through an independent insurance broker. If the assigned risk pool is your only option, you can still get the coverage you need.

What Can You Do?

The Assigned Risk pool is a great option for those who have multiple DUIs or DWIs, as well as for those with many accidents or tickets. If you cannot get coverage in the open market, it is a viable option.

Unfortunately, it could leave your family or business open to financial claims that could otherwise be avoided.

Depending on the number of points on your record, you may qualify for an auto insurance plan on the open market. If you are using a captive agent, he or she may not have any other options available, which means you are only in the assigned risk plan because you didn’t know you could shop for other options.

Call your Hayes Broker today to find out more about how we can help you close the gaps in your Assigned Risk auto insurance to protect your family and/or your business. We might even be able to move you OUT of the assigned risk pool. We can write coverage in all 50 states.

To find out more about the Assigned Risk auto insurance program in your state, choose from the list below:

 

Alabama Department of Insurance
Alaska Department of Commerce, Community and Economic Development Division of Insurance
Arizona Department of Insurance
Arkansas Insurance Department
California Department of Insurance
Colorado Department of Regulatory Agencies
Connecticut Department of Motor Vehicles
Delaware Department of Insurance
Florida Office of Insurance Regulation
Georgia Department of Law
Hawaii Department of Commerce and Consumer Affairs
Idaho Department of Insurance
Illinois Department of Insurance
Indiana Department of Insurance
Iowa Insurance Division
Kansas Insurance Department
Kentucky Department of Insurance
Louisiana Department of Insurance
Maine Professional and Financial Regulation
Maryland Insurance Administration
Massachusetts Attorney General’s Office
Michigan Department of Insurance and Financial Services
Michigan Commerce Department
Mississippi Insurance Department
Missouri Department of Insurance
Office of the Montana State Auditor
Nebraska Department of Motor Vehicles
Nevada Division of Insurance
New Hampshire Insurance Department
New Jersey Department of Banking and Insurance
New Mexico Motor Vehicle Division
New York State Department of Financial Services
North Carolina Department of Insurance
North Dakota Insurance Department
Ohio Department of Insurance
Oklahoma Insurance Commissioner
Oregon Division of Financial Regulation
Pennsylvania Insurance Department
Rhode Island Department of Business Regulation
South Carolina Department of Insurance
South Dakota Department of Labor and Regulation
Tennessee Department of Commerce and Insurance
Texas Department of Insurance
Utah Insurance Department
Vermont Department of Financial Regulation
Virginia State Corporation Commission
Washington Office of the Insurance Commissioner
DC Department of Motor Vehicles
West Virginia Offices of the Insurance Commissioner
Wisconsin Office of the Commissioner of Insurance
Wyoming Department of Insurance

 

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