What is the difference between assigned risk and non-standard auto programs?

Answer 1

Assigned Risk Pools

Assigned Risk auto insurance is usually the Insurer of last Resort for the highest risk drivers who have been declined by at least three Insurance Companies. The Application for insurance is assigned by the state to an admitted carrier in that state. The agent submits the auto application to the state assigned risk plan. The state plan then assigns the application to a licensed insurance company for issue. The agent may or may not have a contractual relationship with the assigned carrier. Generally the assigned carrier is required to offer insurance for three years only and is typically more expenisve when compared to the rest of the market.

Non-standard auto insurance may or may not be for a high risk driver and is purchased from the agent or directly from the company. If purchased from an agent that agent has a contractual relationship with the company issuing the policy.

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