What is an assigned risk auto insurance plan, and how do you get one if no insurer will cover you?
An assigned risk auto insurance plan is a US state's insurer of last resort: a residual-market program that guarantees liability cover to drivers who have been turned down by the regular market. Licensed auto insurers in the state are assigned a share of these drivers, roughly in proportion to their market share. The plan meets the state's legal minimum, and it can file an SR-22, but premiums are usually high and cover options limited. Try non-standard auto insurance carriers first, because they're often cheaper. This page is part of our car insurance for high-risk and convicted drivers series.
- Every state has some form of residual market. Most use an assigned risk plan, often administered by AIPSO. A few use a reinsurance facility or joint underwriting association.
- Eligibility usually requires showing you've been declined by regular insurers within a recent period.
- Cover typically starts at state-minimum liability. Higher limits and physical damage may be available but limited.
- Premiums are generally higher than the voluntary market, so treat the plan as a bridge, not a permanent home.
- Common routes in: a DUI (see how much does car insurance go up after a DUI), serious violations, or a suspended licence.
How an Assigned Risk Plan Works
2. The plan assigns you to an insurer doing business in the state. That insurer issues and services your policy.
3. Rates follow the plan's manual, approved by the state regulator. They're usually above voluntary-market rates.
4. After a clean period, you can move back into the voluntary or non-standard market.
Our agent vs broker vs insurer guide explains who you'll be dealing with. To confirm an agent is licensed, see verify an independent insurance agency license.
Who Ends Up in the Assigned Risk Market
Specialist non-standard carriers often price high-risk drivers below the assigned risk plan's rates. Use the plan only after they decline you.
Assigned Risk vs SR-22 vs Non-Standard
UK readers: there's no state assigned risk plan in the UK. High-risk drivers use specialist insurers and brokers instead. See which insurance companies do not ask about criminal convictions, do you have to declare spent convictions and how long do motoring convictions stay on your licence. Write-off cars add another layer: see are Cat N cars more expensive to insure, Cat S vs Cat N and Ryan's DR10 and Cat N scenario.
Illustrative Case: The Bridge Back to the Voluntary Market
Scenario: Dana, 29, had a DUI, an at-fault accident and a 4-month lapse in cover within two years. Five voluntary and non-standard carriers declined her, and the court required an SR-22.
Resolution & Judicial Outcome: Her agent placed her through the state assigned risk plan at state-minimum limits with an SR-22 filed, for $3,400 a year. After 24 months without incidents or lapses, a non-standard carrier offered her 50/100/50 limits for $2,700, and she moved.
What You Should Do: Step-by-Step Action Plan
Critical Mistakes to Avoid
- Going straight to the plan without trying non-standard carriers.
- Assuming state-minimum limits are enough protection. See coverage vs limits.
- Staying in the plan once you qualify for cheaper cover.