Most states in the US make it mandatory that auto insurance policies include at least the collision and liability coverage, in order to safeguard the property of other drivers. All auto insurance plans would compensate for damage to property and persons by these policy plans. However, for drivers with poor driving records, it is quite an uphill task to locate an agent/insurance company who will provide insurance coverage for their vehicles. The insurance company maybe unwilling to accept applications from these persons because of the high risk they pose and the probability of frequent claims. However some insurance companies specialize in providing insurance coverage to high risk drivers at a high premium rate.
The drivers who are under the scanner of the insurance companies with high potential of making claims usually have one or more of the following in their records:
1. History of inadequate payment of dues
2. A grave accident that damaged property and caused injury to person/persons
3. A record of driving under the influence of drugs
4. Driving while intoxicated
5. History of collision with other vehicles
6. Tickets issued for traffic violation
7. Tickets issued for crossing the speed limit
Also coming under the high risk category are young drivers with little or no driving experience and people residing in high crime rate localities.
The Assigned Risk Auto Insurance is one way the State comes forward to help these drivers. It is an insurance coverage for high risk drivers and helps them procure insurance protection for their vehicles. It would be quite a burden on the drivers and their families if no auto insurance is procured for the vehicles.
Assigned Risk Auto Insurance is the coverage that is fixed by the Government. According to the risk plan set by the State, an insurance agent can give an auto application to the Government. After perusal, the application is directed to a licensed auto insurance company for further issuing.
It is left to the parties then to have a contract or not. If there is to be a contract, the company will purchase the non-standard vehicle insurance from the agent. Once it is decided to go ahead, the company would generally offer coverage up to a maximum of three years.
Usually, the insurance rates in Assigned Risk are higher as poor driving records are anathema to insurance companies. Yet, since there are so many companies offering non-standard auto insurance all over the US, one can find the best option of policy payment rates, compared to the several hundreds available, subject to approval of the insurance firm.
To obtain an assigned risk auto insurance policy, follow these steps
· Visit an insurance agent and apply for coverage of your vehicle.
· If, on the first attempt, your request for policy is turned down by three companies, the agent will send a completed form to the Government, confirming that you come under the high risk category and require assigned risk auto insurance.
· There is no rule that you cannot try for normal insurance again as rules vary from state to state for policies and coverage of a vehicle
· If deciding on assured risk policy, the state insurance department can be approached for further help you may need to get the policy
· You will have to opt for a minimum coverage with higher premium than normal coverage; if and when your policy requisition is accepted