Automobile Assigned Risk Insurance Plan

What Does Automobile Assigned Risk Insurance Plan Mean?

An automobile-assigned risk insurance plan is an auto insurance program designed to provide coverage for drivers who are considered high-risk by insurance companies. Drivers may be categorized as high risk if they have poor driving records, including multiple accidents, tickets, or other violations.

Insuranceopedia Explains Automobile Assigned Risk Insurance Plan

Automobile-assigned risk insurance plans typically come with higher premiums, as the insurer faces a greater likelihood of having to pay out a claim. As a result, having a poor driving record can be costly. These plans serve as alternatives to standard or preferred auto insurance policies. Standard auto plans are offered to drivers with an average level of risk, while preferred auto policies are given to drivers with the lowest level of risk.