What is Private Passenger Assigned Auto Risk Insurance?

By Mike Anderson Posted in Car Insurance News

Simply answered, everyone must have car insurance; even poor drivers. Every state mandates that car insurance agencies must assign automobile insurance to an individual who is not eligible for a policy in a regular market primarily due to a poor driving record. Four wheel vehicles that require registration, car insurance and are only for personal, private use are considered to be private passenger vehicles. Individual’s who cannot qualify for a car insurance policy in a regular market due to a poor driving record may be placed in the assigned risk category for additional reasons including location of residence, education level and credit score.

Car Insurance Companies Cover Assigned Risk Drivers

State regulations require that car insurance companies cover a certain percentage of these high risk drivers. Although the assigned risk laws vary by state, all drivers who hold valid licenses are required to obtain car insurance policies. Drivers records vary and those who have multiple claims, several points or any other derogatory marks on their record are eligible for coverage. If an individual holds a valid license, they must carry a car insurance policy. Each state is different in their policies of assigned risk but they all require coverage.

Improving Your Driving Record May Improve Car Insurance Policy

Car insurance companies routinely review an individuals driving record. Improving this record over a sustained period of time will help an individual become eligible for a car insurance policy in the regular market. Multiple states have programs in place to encourage drivers to improve their driving records. By keeping driving and claim records clean, an individual can obtain insurance in the voluntary market. Car insurance companies encourage imimproving this record as most assigned risk auto insurance plans are not cost effective.

Do you have a poor driving record? Car insurance coverage is available.

Related posts:

  1. What Is Commercial Auto Assigned Risk?
  2. Is Commercial Auto Assigned Risk Different Than Private Passenger Risk?
  3. How Does Assigned Risk Auto Insurance Work?
  4. What Affects Your Driving Record?
  5. Which Insurance Companies Do Not Look At Your Driving Record?

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