Automobile Insurance Plans and High Risk Drivers
High-risk drivers may find it difficult to find a company willing to provide them with car insurance coverage. This is because auto insurance companies are allowed to refuse car insurance to drivers they feel are too risky to cover.
What Is an Automobile Insurance Plan?
Most states mandate a minimum amount of auto insurance; therefore, there needs to be an option for drivers to get car insurance coverage in the event that they are denied by providers in the standard market.
What Is Assigned Risk?
Drivers who apply to the assigned risk plan will be assigned to one of the companies within the plan.
How to Apply?
Through an Agent
If you are considering applying for this type of plan, ask your agent to begin the application process for you.
Through Your State’s Insurance Department
Some states require that you apply to several car insurance companies before you apply for the state’s car insurance plan. If each provider has denied you car insurance coverage, you’ll be accepted into the plan. Typically, your signature on the application is enough to acknowledge that you have fulfilled this requirement.
Costs of an Automobile Insurance Plan
However, because these programs are meant for high-risk drivers, the rates are likely to be much higher in comparison to standard car insurance premiums.
Because rates for car insurance through a state plan are considerably higher than standard rates, you should consider a state plan a last resort.
Get multiple car insurance quotes when shopping. This can be simple to do, as several companies offer free car insurance quotes online. If, after contacting several companies, you still can’t find one willing to provide you car insurance coverage, you may need to apply to a state-offered plan.
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