Assigned Risk

An individual driver noted as an assigned risk is a person with a driving record that would not immediately cause denial of coverage by insurance providers, but in light of laws requiring auto insurance, must have coverage to driver on the roadway. High-risk drivers, which are unable to receive traditional auto insurance coverage, commonly turn to their state's motor vehicle branch to receive coverage. Commonly, a bureau of motor vehicles will assign risk to a given insurance company, and in the event of accidents involving no insurance or underinsurance, the state will pay for victims in the incident.

Fast Facts

  • Coverage under assigned risk programs is guaranteed, but the costs of obtaining this type of coverage are traditionally much higher than regular automobile insurance coverage.
  • Assigned risk programs are only applicable in states that require automobile insurance and in situations where a driver has tried all traditional means of obtaining coverage.

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