Many people have heard the term "assigned risk" in passing, but you might not know what it actually means. The Insurance House is here to help you understand what assigned risk auto insurance is and the purpose it serves.
The Basics of Assigned Risk
Rack up the speeding tickets, auto accidents or other traffic infractions and you’ll eventually lose your auto insurance through a conventional carrier. It is at that point that you will be relegated to the assigned risk auto insurance pool.
The assigned risk category exists for those who’ve proven themselves to be a risk on the road. As such, they are assigned to the high risk category and forced to pay higher auto insurance premiums.
The purpose of the assigned risk pool is to guarantee that drivers who pose high risk to insurers can still obtain auto insurance. This way, if conventional insurers turn down those risky drivers, they’ll be allowed to purchase the minimum insurance requirements mandated by the state.
However, assigned risk is a last resort as it is more expensive than insurance available through conventional providers. Moreover, assigned risk pools tend to have less coverage options than traditional insurers in Tucson, AZ.
Assigned Risk Insurance Isn’t Permanent
Those relegated to the state’s assigned risk auto insurance pool are not stuck there for the rest of their driving lives. Rather, assigned risk insurance pools are temporary groupings that drivers can emerge from after proving they have learned to become low-risk defensive drivers. Moreover, those with previously poor credit, no record of insurance or a residence location in an area with a high rate of auto theft can also transition back to conventional insurance after making the appropriate progressions.
The Insurance House Is at Your Service
Serving Tucson, AZ, The Insurance House offers affordable coverage and fair terms. Reach out to us today to learn more about auto insurance, home insurance, commercial insurance, life insurance and more.
