Automobile Insurance...?

Question

I was scaning a list of questions and the term "assigned risk" came up. What is assigned risk?

And what would you think the cost would be for car insurance with StateFarm and Geico, I as the principle driver? I know gender and maternial status make a difference, but in general.

I have looked on the site, but I am not going to sign up to any insurance unless I know what the deal is.

Thanks in advance!

Answer 1

Assigned risk "pool" is a State program that is designed to provide insurance at basic required limits for drivers that have been rejected by (normally) three or more carriers.

There is not ONE insurance company that is good for everyone - as there are too many variables to consider!

Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of car/truck, coverages, limits of liability, and driving record. Some companies run credit scores and MOST run a motor vehicle report and CLUE (Comprehensive Loss Underwriting Exchange) report to see about undisclosed accident involvement.

The best thing to do is call a LOCAL independent agent. Don't go across town, or to some other city - look for someone CLOSE. Just look in the phone book for the PIA or Big I (Trusted Choice) logos and you will find a professional licensed agent that will be able to help you solve your insurance problems, and give you rate comparisons of several different companies.

An independent insurance agent will normally have a dozen different companies and if he cannot help you, he should be networked with other local agents that can.

In my agency, we have companies that do NOT run a credit score and welcome drivers with "less than perfect" driving records and specialize in youthful operators!

Most of the replies on this site say "go to this on-line carrier or that on-line carrier or that 1-800 number" but I'm sure that when you do, you will find some impersonal computer user with a script to work from and you won't be able to talk with the same person every time you have a problem!

Good luck, drive RESPONSIBLY and I hope this helps!

Answer 2

Since you've been in the assigned risk pool, your premiums will be high, if you are lucky to get a car insurance.

After you enter an assigned-risk pool, the insurance company assigned to you must keep you for three years. At the end of that period, your company has the choice of keeping you as a customer or not renewing your policy. Even if the insurance company doesn't renew your policy after you have kept your driving record clean and sent in premium payments on time, you should be able to find another insurance company willing to issue a policy to you.

During your three years in the assigned-risk penalty box, it is in your own best interest to keep playing the field by shopping for a company that will insure you at a lower cost. As time passes without any driving accidents or citations, your chances of getting insurance on the open market become greater.

I'd highly recommend trying to get as many quotes as possible before choosing an insurance company.