If your driving record is littered with infractions, it might be tough to locate a provider that would offer you car insurance.
A few infractions may result in increased rates, but accumulate too many major convictions or citations, and insurers may prefer not to deal with you at all. This causes significant complications if you own a car and do not have the required insurance in your state.
If your auto insurance application is denied, joining the state assigned-risk pool may be the only way to obtain the coverage required to drive lawfully.
What is an assigned-risk car insurance pool?
Drivers who are considered excessively hazardous may be unable to purchase car insurance on the private market. However, if they own a vehicle, they are required by law to have coverage, thus states assign them to state-based insurance companies. This category is called the “assigned-risk pool,” “residual market,” or “shared market.” It is sometimes referred to as the joint underwriting association.
What problems put drivers in the assigned-risk pool?
Each state has its own eligibility requirements for the assigned-risk pool.
If you’ve tried to acquire auto insurance within the last 60 days and been turned down, you can usually apply to your state’s assigned-risk pool. Some states may require that you be turned down many times.
You may be rejected car insurance for the following reasons:
- Major driving convictions (DUI/DWI, hit-and-run)
- Multiple accidents, tickets or claims in your driving record
- Have little or no driving experience
Insurance prices and coverage options for assigned-risk drivers
Expect your car insurance premiums to be significantly higher in the assigned-risk pool. Your policy options may be limited to the state’s minimum liability requirements. Some states may allow you to receive a discount on your assigned-risk pool insurance plan after a set period of time without any accidents or driving convictions.
How to find your state’s assigned-risk pool
Generally, any car insurance agent in your state can assist you with an assigned-risk policy. Depending on your state, you may be required to prove, declare, or verify that you have no other options for purchasing insurance.
How to get out of the assigned-risk pool
States require insurers to renew assigned-risk pool plans for a specified period of time, typically three years. Assuming you pay your premiums and keep your driving record clean during your pool time, you will most likely be eligible for a normal policy by then. If you do not, you may reapply to the assigned-risk pool.
You might be able to get out of the pool quicker if:
- You find an insurance provider that will sell you standard policy
- Your assigned-risk pool insurer provides you with typical coverage
